Why you should consider a payment processing audit for your business.
We all get the calls: Someone soliciting your business to lower your credit card processing fees. It might be your local bank, a vendor down the street, or a competitor to the vendor you are using. In this article, we will discuss why it’s a good idea to get your payment processing fees audited and the things you should look out for when selecting a vendor for this exercise.
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What is a payments audit?
A payment audit provides a detailed analysis of all expenses incurred when accepting ACH and credit card payments. For propane marketers, this comprehensive review should clearly outline the four primary components of credit card processing costs:
- Dues and Assessments – Industry-standard fees imposed by card networks.
- 3rd Party Payment Gateway Fees (if applicable) – Charges for the use of third-party payment gateway to authorize transactions
- Processor Markup – The fees added by the payment processor for their services.
- Interchange Fees – Costs set by the issuing card networks for each transaction.
Beyond simply itemizing expenses, a thorough payment audit examines the marketer’s current payment collection, storage, and automation practices. By evaluating these processes, the audit can identify opportunities for improvement and recommend best practices to enhance security, efficiency, and cost savings.
A well-conducted audit clarifies where your payment expenses lie and offers actionable insights and best practices to streamline operations and boost profitability.
Why should propane marketers consider an audit?
Many propane marketers are missing valuable opportunities to reduce payment processing costs, particularly regarding interchange fees.
Interchange fees account for roughly 75% of a propane marketer’s total credit card acceptance expenses. However, qualifying for specialized industry programs with the card brands can significantly reduce these fees.
Additionally, if your business accepts purchasing, commercial, or business cards, you could lower fees by up to 30% by providing Level 2 or Level 3 payment data—assuming your processor supports the necessary technology.
Eliminating Redundant Technology
Another common issue among propane marketers is fragmented payment setups caused by working with multiple vendors. This can lead to unnecessary technology expenses.
A comprehensive audit can identify redundant tools, such as third-party payment gateways (e.g., Authorize.net or NMI), that may no longer be necessary to connect your payment processing system to your software or payment page.
Things to look out for in terms of an audit
Make sure the processor breaks down your total projected interchange cost.
Many solicitors will give you a quote such as IC Plus (or interchange plus) and then a percentage, xyz%. Interchange fees are not a fixed cost for propane marketers; they are dynamic costs, meaning the interchange fees that your processor passes on to you are determined by the processor’s technology and setup.
Ensure the auditor has experience in the industry.
Processing payments for home heating oil and propane delivery is highly specialized. Experience in the industry is imperative to understanding which card brand programs your business might be eligible for and how certain best practices can affect your net cost.
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About the Author
(207) 321-1150
Jon is an accomplished payment professional with 15+ years of history in recurring and utility payments. As the Director of Business Development at Qualpay, he oversees business development and sales efforts while working closely with partners to educate merchants on effective cash flow management practices.
Jon has successfully launched multiple channel programs, managing all aspects of the process: from the creation of the business development strategy to the implementation of the marketing promotion initiatives. Prior to joining Qualpay in 2017, Jon served as the Vice President of Domestic & International eCommerce at Evo Payments INTL. Jon’s strengths lie in his experience and knowledge of the Energy payment industry with a focus on next generation products and services that can be implemented to further reduce costs and gain operational efficiencies.
Thanks to his knowledge and understanding of the industry, he can communicate and translate complex payment concepts into a business-friendly language, allowing him to build strong connections and relationships with partners and merchants.
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.