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Time to Take the Pledge: Fuel Dealers Need to Be Protected

by Larry Richmond, Richmond Financial Services


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Data portability is an essential prerequisite to a fair and competitive marketplace

Many of you already know that I’ve been working on electronic payments and credit card processing for fuel dealers for the last two decades, most notably leading the charge which opened up access for the industry to participate in the MasterCardô Utility program. I’m writing today to highlight a disturbing trend you need to be aware of, and I urge you and the industry as a whole to immediately advocate for your interests to ensure a level playing field that enables credit card data portability.

Most, if not all, oil and propane companies just assume when signing up with a payment vendor and voluntarily choosing to run their customers’ credit card transactions through that payment provider that all will go smoothly, which is often the case. But what you might not know is that the actual data associated with those credit/debit cards is owned by the payment provider and/or gateway company, not by you. What does that mean to you at the end of the day?


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Consider this recent scenario, Nick Warren, president of Arrow Fuel — a second-generation family-run energy company located in Seekonk, Massachusetts — decided to switch payment providers as the additional efficiencies and cost savings derived from a new updated financial technology platform were just too appealing to pass up. This is what he had to say:

“I’ve spent the past 5 years updating our company’s technology in pursuit of a better customer experience and more efficient back-office operations. The last piece of that puzzle was streamlining our credit card processing.

“Over the last 13 years, we have accumulated thousands of stored credit card tokens with two separate processing companies. The task of migrating MY customers’ data to our new processing company has proved to be harder than finding qualified oil drivers.

“I was told by one of my processing providers it would cost me thousands of dollars to rescue my own credit data and send it to my new payment provider.

“To say the least, I was bewildered to hear this as later I discovered it’s my data and I should have the right to transfer it in a secure PCI compliant manner to any payment provider of my choice.

“The situation was so unpleasant, out of principle I choose to no longer communicate with my outgoing processor, leaving my team with the arduous task of entering cardholder data for thousands of customers instead of negotiating with a company that was not acting in good faith.

“As a business owner, I view it necessary for me to put trust into my vendor relationships to run my business effectively. But when a vendor acts in a self-serving manner because they were going to lose a customer, enough is enough. I am in the heating oil business, and my biggest blind spot is thinking other vendors would service their customers the same way we do. As a result, I was probably more naive than I should have been which ended up costing me a lot of aggravation and stress.”

These types of unfortunate scenarios have been happening more and more, and I have been receiving frequent phone calls from retail fuel dealers and vendors regarding credit card data and the right to port the information to a new vendor of choice. In many cases, I’m hearing all kinds of prohibitive posturing by payment providers who are unnecessarily complicating the process and in some cases, charging exorbitant fees as a means of restricting dealer choice.

This is a disturbing and unethical business practice.

Healthy client/vendor relationships are built on a foundation of trust, and it is paramount the client’s best interests are always the number one priority of the payment vendor. I would be remiss not to interject that there are many professional payment providers that adhere to their client’s wishes, remain cooperative and assist in the data transfer process while ensuring it is conducted in a secure PCI compliant manner that properly protects the client’s credit card data.

It is imperative that all payment providers put their clients first even if that means politely holding the door for them if they choose to move on.

Vendors not acting in the best interest of their clients can wreak havoc, causing unnecessary stress and expense, almost like a ransomware attack forcing the client to buy their way out. Keep in mind we are talking about credit card data that ethically and rightfully belongs to the client in the first place. The data was entrusted to the payment provider so they could service the client, and now the very same data is being used against them. The inherent conflict of interest breaks the system down, exposing the client if their outgoing service provider transforms into a foe.


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As a frame of reference, back in 2009, Congress enacted The Credit Card Accountability Responsibility and Disclosure Act. This is a consumer protection law that was enacted to protect consumers from unfair practices by credit card issuers by requiring more transparency in credit card terms and conditions. This included adding limits to charges and interest rates associated with credit card use.

In 2010, Braintree — then a leading technologist in the payment space — recognized the issue and addressed the problem by creating the Credit Card Data Portability initiative. This is an opt-in community of payment providers that agree to allow a merchant to port credit card and other associated information if the merchant decides to move to another provider. Their goal was simple – attract other likeminded professional payment providers to join in and participate for the benefit of not just the client, but the overall payment industry. Payment providers are encouraged to make all terms and conditions available upfront to the client, clearly indicating the payment providers’ willingness to transfer credit card data without incident or unjust fees. This initiative proved quite effective in the world of general credit card processing as it helped minimize vendor lock-in and promote free market principles of fair competition.

The time has come to level the playing field.

All fuel dealers and payment providers need to come together to advocate on behalf of the heating fuel industry. Pledge details are currently being discussed at the State level, and I will report back soon.

As a payment professional advocating for the retail heating fuels industry, I propose all payment providers pledge to exercise fair business practices that uniformly protect retail fuel dealers’ credit/debit card data and the ability to freely transfer such information. I call on all heating fuel retailers to advocate and support this pledge and come together as an industry.

“The Heating Fuel Dealers Credit Card Data Portability Pledge of 2022” personifies the industry’s commitment to standardize professional business practices amongst payment providers while protecting heating fuels dealers. Leveling the playing field creates a competitive marketplace that drives payment innovation and free agency, which are both critical attributes of a healthy market. It’s the American way.

Larry Richmond is President of Richmond Financial Services. He can be reached at 517-843-5700 ext. 200 or larry@richmondfs.com.

Software and Technology
Payment Processing
January-February 2022
Credit Card

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