Category Archives: Fleet Card

Margins for Growth with Intevacon

iStock_000009737415SmallIntevacon continues to grow each month in the number of customers who use our system and enjoy the benefits of a proprietary fleet card and prepaid card.  It looks like the industry in general is growing as well.  A Nielson study was published recently stating that the U.S. convenience store count increased by 1.4% in 2013, adding 2,062 stores.1,2  Probably even more striking, the convenience store industry has doubled in size over the last three decades. 1,2    This is not totally surprising considering that consumers increasingly view convenience stores as more than just an opportunity to purchase fuel.  Convenience stores satisfy the demands of on-the-go consumers with their ever-expanding product lines, from fresh foods to a myriad of beverages.  In total, convenience stores comprise 34.3% of all retail outlets according to Neilson. 1,2    Of these convenience stores, 62.8% of them are managed by single-store operators. 1,2

More good news for the convenience store industry—a study from Sageworks indicates that 2013 was a strong year for fuel profits at privately held gas stations, with net profits rising almost 3% on average.3  While this is a great trend, the study also noted that privately held gas station owners experienced very little profit from each gallon of gas because the margins tend to be so thin after factoring in the original wholesale cost, taxes, and swipe fees. 3   As a contrast, convenience store retailers have a lower net profit margin on average than most retailers, with the average privately held company across all industries averaging more than 8% net profit margin. 3   This low net profit margin experienced by marketers is yet another reason why Intevacon is excited to be growing.  We are able to offer an innovative and dependable system to our marketers without the high transaction fees that are typically associated with standard credit cards.  We succeed when our marketers succeed, and that is why we have created a pricing structure that allows for higher margins and keeps the marketer in control of his/her customers.

The convenience store industry comprises an invaluable place in our society.  Intevacon is proud to offer alternative payment solutions to our marketers, both in the form of fleet cards and prepaid cards.  We enjoy growing relationships throughout the industry, and we aim to support our customers through all of their successes with a system that is both flexible and innovative to their needs.

  1. “Convenience Store Count Tops 149,000.”  NACS. January 2014. Web. January 2014. http://www.nacsonline.com/News/Daily/Pages/ND0123132.aspx#.Uuqzt_uYV6s
  2. “Convenience Store Industry Adds More Than 2,000 Stores.” CSP.net. January 2014. Web. January 2014. http://www.cspnet.com/industry-news-analysis/corporate-news/articles/convenience-store-industry-adds-more-2000-stores
  3. “Fewer Expenses, Bigger Margins in 2013.” CSP.net. January 2014. Web. January 2014. http://www.cspnet.com/fuels-news-prices-analysis/fuels-analysis/articles/fewer-expenses-bigger-margins-2013

Contact us at 678-739-4450 or moreinfo@intevacon.com to get more information.  http://www.Intevacon.com

Becoming a Convert

One of the mosshutterstock_1338696t common questions that we hear from new customers relates to the process and timing of conversion to our system.  Because of the intelligent design built into our system, conversion and training are really very simple.  Intevacon has a team of dedicated members to help our customers reach their target Go Live schedules.  We can move as fast as needed to get our customers up and running on the Intevacon system.

As a summary, below are the five basic steps for conversion onto the Intevacon System:

  1. Signed Contract
  2. Data
    • Site list and account information sent to Intevacon
    • Data imported by Intevacon
  3. Testing
    • Gateway device connected at site
    • Transaction test with POS and product codes
  4. Training
    • Intevacon system training
    • Additional system set-up (if required)
  5. Go Live

The process is direct, and Intevacon is available to assist every step of the way.  Our timelines vary from marketer to marketer, with conversion taking less than a week (whew!) to over a month depending on the marketer.  Marketers with many sites will need a technician to visit each site to set up the gateway device (small device that allows the POS to talk to our system) and conduct a swipe test at the POS.  In most cases, card account data can be automatically imported into our system, eliminating the need to manually key any account information.  For customers exporting to an accounting package, we have a transfer file that can be downloaded and sent to your accounting representative for testing.

Once customers are connected to our system, we provide remote training, and we are always available for additional questions about using the system.  We repeatedly hear about how easy it is to use our system, and the online log-in allows customers to have access from any computer to see real-time transactions.  Intevacon’s system was built for our marketers, and we continually innovate and improve to meet the needs of our customers.  Now that you know how easy it is to convert, are you ready to set up your Go Live date?

 

Settling Swipe Fees

iStock_000002480172SmallOn Friday, December 13th, US District Judge John Gleeson approved the $5.7 billion class-action swipe fee settlement that has been in discussion since 2012.  This settlement is the offspring of private anti-trust litigation that was filed by NACS in 2005 against major credit card companies and banks.  The approved settlement was stated to be “woefully inadequate”, and therefore, NACS elected to opt out of the settlement.  Now that the settlement has been passed by Judge Gleeson, retailers are said to be left in worse shape than if they had just lost the trial.

This legal decision was very important to marketers, as credit-card swipe fees cost merchants and their customers an estimated $30 billion a year1.  Now that the settlement has passed, merchants will be even less protected from unreasonable rates by the credit card companies.

Here is an excerpt of the response from NACS:

The proposed settlement would give merchants a limited right to surcharge that is too complex to implement and would allow the credit card companies to continue to set prices for their member banks. Furthermore, the proposed settlement would do nothing to give merchants competitive network routing choices, and also lock-in many anti-competitive activities of the credit card companies forever2.

As a payment solutions company, we can only offer our condolences to the merchants whose livelihood is affected by this ruling.  We can also offer a solution to marketers who want to capture back the revenue lost to the major credit card companies.  The Intevacon Proprietary Fleet card allows marketers to offer their customers a payment solution with the capability to leverage card controls, a perfect way to increase loyalty with card holders.  Our rates give marketers an advantage and they also leave margin to reward fuel customers with discounts and other incentives.  Our Prepaid card nicely complements the function of the Fleet card by providing customers with a cash-based method of payment and the convenience of a card.  In all of our efforts, we aim to empower and partner with the marketer.

The petroleum industry fuels the nation’s activity.  At Intevacon, we aspire to equip our marketers with the best solutions and the best pricing to win at this endeavor.  For more information about our fleet and prepaid card solutions, view an introductory presentation here, or reach out at moreinfo@intevacon.com.

http://www.Intevacon.com