Are you a Oil/propane company trying to save money of your merchant account fees?
Your industry has a bit of a unique situation being that Visa considers you an Emerging market and MasterCard considers you a Utility.
Generally a merchant can only have one SIC code. In the past a processor would view your statements and depending on whether you processed more Visa or MasterCard would pick the appropriate SIC code the other cards would pass through as card not present.
Things have changed and a few processors have the ability to do a dual SIC code. This allows merchants to qualify for both emerging market and utility.
Working with a processor who has the ability to do Dual SIC Codes can provide a company a significant savings in processing fees.
Cost/interchange for these two categories are below.
|CPS Retail 2 Card Not Present||1060/1560||1.43%||+||$0.05|
Check Cards .80% + $.25
Oct 1st Durbin check/debit cards .005 + $.20
Check/Debit 0.00% + $0.45
In order to properly qualify you need be set up on Interchange Plus vs. Tier pricing. Interchange plus pricing structure may sound more intimidating, but what you’re paying is actually much more transparent and less expensive than tiered accounts. On interchange plus pricing structure, the merchant pays the exact interchange fee in addition to a flat markup to their merchant service provider. This eliminates inconsistent buckets and overpaying for inflated tiers.
You also need cost plus to get 100% of the Durbin savings. Oct 1st the Durbin Amendment went into effect. This caps the amount banks can charge for check/debit cards. The problem is it caps the banks, not the processors. Many credit card processors are keeping this additional revenue for themselves.
If you have a merchant account set up today, your statement will show “Emerging Market” for Visa and “Utility” for MasterCard next to your detailed fees. The challenge you may have is that your current processor may not have you set up with the correct Merchant Category Code (MCC)or their merchant statement does not show you the detail. The only way for you to verify that you are receiving this special pricing is for you to see these remarks on your statement.
Revolution has over 12 years’ experience working with merchants related to the propane and home heating industries.
Revolution is offering a NO OBLIGATION Review. One of our payment specialists will do a side by side comparison as well as show you what you’re paying; compared to cost and any improvements we may happen to see.
Even if you’re sure you have a great rate, have a friend in the industry doing your processing, through another association program or your local bank I encourage you to at least have us do a no obligation review for you
Already have cost + and Dual SIC codes? I still encourage you to fax us a copy of your last month’s statement. We have been able to provide merchants the same rates but save them hundreds and in some cases over $1,000 per month by the way cards are qualifying.