n. cvijanovic & g. renfroe got gas? - … · learning objectives what does the term petroleum...
TRANSCRIPT
NPS & Woodforest - NEW
Glossary of Terms
About the Petro niche
Why Sell Petro?
How to Sell Petro?
Sales Cycle
Interchange qualification
Compelling Questions
Conclusion
Intro/Outline
Learning ObjectivesWhat does the term Petroleum encompass?
What Fleet and Private Label cards are supported
What hardware and software is available to the petroleum market
What the target interchange rates are for petroleum and downgrades
What types of chargeback impact the petroleum industry
Credit and debit card transactions accounted for approx. 70% of the c-stores’ total sales in 2006 according to NACS.
5542 MCC assigned for Pay-at-the-Pump
5541 MCC assigned for C-Store Sales
AFD Automated Fueling Dispenser
C-Store
Convenience Store
CAT Card Activated Terminal
CRIND Card Reader in Dispenser
Dealer Doesn't own land or hardware yet receives c-store sales
DCR Dispenser Card Reader (aka card reader device)
DNS Data Network Systems
Fixed Wireless
Wireless communication method that does not require phone line but is not portable (e.g. internet transport, frame relay, VSAT, etc.)
WEX Wright Express
ISP Internet Service Provider
Jobber Multi-site company who owns land and hardware and also receives c-store sales.
Fleet Card
Commercial credit card that target the petroleum industry, which are typically used to purchase fuel, auto services, and supplies.
Fleet Cor
Company that distributes the Fuelman and Gascard fleet cards. Private Label Card: Commercial credit card that targets petro industry.
Private Label Card
Private Label Card - Commercial credit cards that target the petroleum industry, which are typically used to purchase fuel, auto services, and supplies.
P01 Ethanol85P02 DieselP03 Unleaded P04 Super Unleded P05 Other Fuel
Product Code
1-2 digit code that enables the issuer and/or major marketer to identify the good purchased or services performed at a particular site.
P06 Unleaded PlusP07 Gas/alcoholP08 Gas/AlcoholP09 Diesel
Product Code example:
Petroleum• Establishment where fuel
is purchased• Requires prompting of
product codes for the purchase of goods and services
• Convenience stores and gas stations are examples of petroleum marketers
• Marinas• Airport Fuel• Snow Mobile Dealers
Locations where fuel is not purchased
Fleet cards are accepted
Often referred to as service merchants
i.e. Auto repair shops
Non-Gas
Impressive
Oil Company – Visa/MC/Disc –monthly $162,185Profits - $602 - 37 BP
Gas/C Store - Visa/MC/Disc – monthly $192,055Profits - $1128 - 58 BP
Marina - Visa/MC/Disc – monthly $253,878Profits - $837 - 33 BP
Profit
Rockin
Lack of competition
Fear of switching
POS compatibility
Cost of changing processors
Current processor termination fees
Retention
Minimal
The biggest hurdle is the setup process
Do your homework beforehand
Communicate the requirements to NPS
Look like an expert
Maintenance
Jobbers Who?Individuals or companies responsible for purchasing products directly from refining companies and reselling them to gas stations or other industry related businesses (i.e. home heating oil to homeowners, Jet fuel FBO, etc.)
Jobbers can be located through local gas station owners or petroleum marketers
associations, for example PMAA.
(Petroleum Marketers Association of America)
Higher wholesale prices
Brand name competition
Fuel efficient cars
Wholesale clubsLower gas
consumptionHigher
interchange fees
of your time goes toward short sales cycle
30%of your time to larger accounts
(long term sales cycle)
Authorization Parameters
$1.00 authorization check
Interchange Qualification factors•Settled amount </= to $125 qualifies for best rate•Settled amount =/> $125 downgrades
Chargeback protection – Visa,MC, Disc - $125Amex $100 – suggested $100 cap
MCC 5542
Petro Interchange Rates Examples
42 1260 CPS Automated Fuel Dis DEBIT 0.91%+$0.1725
42 1284 CPS Service Station - DEBIT 0.91%+$0.1725
40 1284 CPS Service Stations 1.26%+$0.2725
52 1284 Petroleum DEBIT 0.81%+$0.1886
50 1284 Petroleum - Consumer Core 2.01%+$0.0186
55 1284 Consumer Rewards Petroleum 2.01%+$0.0186
Top Chargeback Reason Codes
88% Fraud Transaction
8% Non-receipt of requested item
1% Non-matching account number
2% No-authorization
1% Duplicate Processing
Hardware and SoftwareCC Machines – VX570 IP/dial
Software-Gilbarco, Excentus, Triversity, Datatran,Ruby, Radiant Systems, ETC……