In today's competitive market, home heating oil, propane, and gas suppliers are looking for ways to optimize operations and reduce costs. One area where substantial savings can be achieved is in credit card processing fees. By finding more cost-effective ways to handle credit card transactions, suppliers can shift more resources to other strategic priorities, such as improving their services and staying competitive.

What are Interchange fees?

Interchange fees, often referred to simply as "interchange," are the fees that credit card associations (such as Visa, Mastercard, American Express, and Discover) charge to financial institutions (such as banks) for the processing of credit and debit card transactions. These fees are an essential component of the payment card ecosystem and play a critical role in facilitating electronic payment transactions. Simply put, Interchange refers to the schedule of fees paid by the merchant for the convenience of accepting credit cards. Interchange generally embodies the single largest card acceptance transaction expense.The fees vary depending on factors such as industry or merchant category. For instance, online businesses often deal with card-not-present transactions, which can lead to slightly higher processing fees due to increased fraud risk. Some businesses may benefit from special interchange rates, which can lead to lower credit card processing fees. Fortunately for merchants in the heating oil, propane and gas supplies, merchants classified as Utilities qualify for a special interchange rate.

How the Utility Program can reduce your Interchange fees

Utility Payments interchange rates are the lowest credit card acceptance rates of any industry in the nation. These payments are considered “low risk” from a processing perspective, and the interchange rates reflect that level of risk. Utility service providers, including heating oil, gas, waste management, and other similar services, are essential for daily living. As such, customers are more likely to prioritize these payments, reducing the risk of chargebacks or payment disputes. Chargebacks are relatively rare in the utility payments sector since customers are more likely to resolve billing issues directly with the utility provider.These are some of the factors that allow Visa, MasterCard, and Discover to offer low interchange rates to businesses that provide waste management or utility services. These special rates are called the Utility interchange rates.You may qualify for the Utilities rate if your business fits on of the following categories:

• Home heating oil delivery companies
• Propane delivery services
• Local oil and gas suppliers
• Energy co-operatives
• Oil and propane associations
• Full-Service energy providers
• Energy services companies (ESCOs)
• Home energy subscription services

To qualify for the utility interchange rates, your business must be approved for a Utilities merchant account. Setting up a Utilities merchant account requires that your business be classified with the correct eligible MCC code, and your business must be registered with Visa with a valid Merchant Verification Value (MVV).

Why is interchange optimization important for Utilities merchants?

Understanding the rates and fees that impact your bottom line is essential when selecting a credit card processor. Your propane, heating oil or gas company likely processes a significant volume of credit card transactions, and interchange fees make up a substantial part of your processing expenses. Optimizing interchange rates can help you lower your overall processing costs, resulting in substantial savings. Typically, up to 90% of your processing expense consists of Interchange and Card Brand Fees and Assessments. By managing credit card processing costs efficiently, your Utilities business can strengthen its financial foundation.

Understanding the rates and fees that impact your bottom line is essential when selecting a credit card processor. Your propane, heating oil or gas company likely processes a significant volume of credit card transactions, and interchange fees make up a substantial part of your processing expenses. Optimizing interchange rates can help you lower your overall processing costs, resulting in substantial savings. Typically, up to 90% of your processing expense consists of Interchange and Card Brand Fees and Assessments. By managing credit card processing costs efficiently, your Utilities business can strengthen its financial foundation.

What can you do to reduce credit card processing fees?

Analysis is the first step in evaluating whether you're enjoying the interchange rates your company is eligible for, get started by following the link below. Ensure your interchange fees are optimized by taking Qualpay’s Savings Challenge. Simply upload one of your latest statements and we will create a custom audit of your interchange charges to see if you are paying more than you have to. Qualpay's cutting-edge technology ensures you are utilizing the correct criteria to achieve the lowest interchange rate—the target interchange. That means properly setting up all the qualifying data necessary to meet the card brands' rules. It also means passing along the correct industry classifications. And should you need further help qualifying for the lowest interchange rate, our support staff is always ready to assist you.

About Qualpay

Qualpay is a fully-integrated payments platform that utilizes the most up-to-date technology to reduce costs and streamline back-office operations. Its comprehensive system addresses and resolves the payment challenges businesses face, ensuring a stronger, more robust infrastructure that allows companies to focus on growing their business. Qualpay is recognized within the industry for providing customers the benefits of an integrated payment gateway and merchant account, simplified cash reconciliation and easy-to-use, customizable business reporting. Qualpay's reporting intelligence and data analytics allow customers to quickly and efficiently manage their payment finances, saving them both time and money. Simply put, Qualpay provides a better way to manage payments. With Qualpay’s industry expertise, robust technology, and advanced reporting, it’s no wonder that the National Propane Gas Association (NPGA) selected Qualpay as the Preferred Payments partner for the propane industry. This means that NPGA recommends or endorses Qualpay as the preferred company to handle payment processing services for businesses within the propane industry.