Fuel hauler optimizes payment processing
Northeast Fuel Pay, a Portland, Maine-based payment processing specialist for fuel and utility providers, recently helped a fuel oil delivery company achieve annual savings of more than $100,000 by switching from a generic payment processor to Northeast Fuel’s industry-specific solution.
The Northern New England fuel transporter, which operates 10 trucks that deliver home heating oil and kerosene throughout the region, had worked with the same payment processor for over a decade, Northeast Fuel reported. But when that processor was acquired by a large, general-purpose merchant services provider in 2012, the fuel company experienced declining service quality and missed opportunities for industry-specific savings programs.
“When payment processors lose their industry focus, fuel dealers pay the price, literally,” Northeast Fuel’s Matthew Tasker said in a news release. “Northeast Fuel Pay recognized that fuel delivery businesses were being underserved by generic processors who don’t understand the unique challenges of card-not-present transactions, seasonal cash flow variations, and the critical importance of reliable payment systems during harsh New England winters.”
Northeast Fuel’s payment optimization strategy delivered results through three key initiatives, the company said. First, strategic rate restructuring achieved an 82% reduction in percentage markup costs beyond interchange and a 77% reduction in per-transaction fees. Second, proper merchant classification unlocked access to Visa and Mastercard emerging markets programs designed specifically for fuel delivery businesses. Third, the elimination of unnecessary fees removed an additional 190 basis points in processing costs.
The implementation process was designed to minimize disruption to daily operations, Northeast Fuel added. The processor’s team handled all aspects of the merchant account transition, ensuring the 21-year-old fuel delivery company experienced zero downtime. The Maine-based support team provided personalized training and continues to offer ongoing optimization and monitoring.
Beyond the financial savings, the fuel delivery company now benefits from reduced administrative burden through automated billing features and enhanced customer satisfaction from seamless payment experiences. The restoration of specialized, local support has proven equally valuable. Unlike generic processors, Northeast Fuel’s team understands the seasonal demands of fuel delivery in New England and provides proactive account management tailored to industry needs.
“The success story reflects a growing trend among fuel, propane, and utility providers seeking alternatives to generic payment processors,” Northeast Fuel concluded. “As margins tighten in competitive energy markets, businesses are discovering that specialized payment processing represents one of the most effective strategies for improving profitability without raising prices.”