Case Study: Residential Fuel Oil Delivery Service Achieves $100,000+ Annual Savings with Northeast Fuel Pay

Executive Summary

A 21-year-old fuel oil delivery company serving Northern New England partnered with Northeast Fuel Pay to optimize and reduce its payment processing costs. By transitioning from a generalist payment processor to Northeast Fuel Pay’s industry-specialized solution, the company achieved annual merchant account savings exceeding $100,000 through strategic rate reductions, proper merchant classification, and elimination of unnecessary fees.

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Client Overview

• Company: Residential Fuel Oil Delivery Service (name withheld for privacy)
• Industry: Home heating fuel delivery
• Years in Business: 21 years
• Service Area: Northern New England
• Fleet Size: 8-12 delivery trucks

Products Delivered:

• Home heating oil (#2 oil)
• K-1 kerosene

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The Challenge

Legacy Processor Limitations

For more than a decade, Residential Fuel Oil Delivery Service relied on a payment processor that initially specialized in fuel delivery businesses. However, after the processor’s acquisition by a large, general-purpose merchant account provider in 2012, the company experienced:

• Declining service quality due to loss of industry-specific expertise
• Lack of specialized support for fuel delivery payment challenges
• Missed opportunities for industry-specific discount programs and rate reductions

Financial Impact

The company’s payment processing costs had become a significant expense, cutting into already thin margins in the competitive fuel delivery market. They needed a partner who understood their unique business model and could provide cost-effective solutions tailored to their industry.

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The Solution

Northeast Fuel Pay implemented a comprehensive payment optimization strategy designed specifically for fuel delivery businesses:

1. Strategic Rate Restructuring

• 82% reduction in percentage markup costs beyond interchange
• 77% reduction in per-transaction fees
• Elimination of an additional 190 basis points in fees through proper setup and fee optimization

2. Industry-Specific Program Enrollment

Northeast Fuel Pay ensured proper merchant classification to qualify for:

• Visa Emerging Markets Programs
• MasterCard Emerging Markets Programs
• Additional association specialized fuel delivery industry rates

3. Comprehensive Fee Elimination

Our team identified and eliminated unnecessary fees that had accumulated over the years with the previous processor, including:

• Added markup charges
• Redundant service fees
• Non-compliant pricing structures

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Implementation Process

Step 1: Business Assessment

• Analyzed current merchant category code (MCC) classification
• Reviewed existing fee structure and processing volume
• Identified opportunities for immediate savings

Step 2: Seamless Transition

• Handled all aspects of merchant account setup
• Ensured zero business disruption during transition
• Provided personalized training for staff as needed

Step 3: Ongoing Optimization

• Ongoing monitoring of processing rates
• Regular software and best practices updates
• Dedicated support from a 100% USA-based (Portland, Maine) team

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Results

Financial Impact

Annual Savings: Estimated $100,000+

The combination of reduced rates, proper classification, and fee elimination delivered immediate and substantial cost savings:

• Processing cost reduction: 82% decrease in markup beyond interchange
• Transaction fee savings: 77% reduction per transaction
• Additional savings: 190 basis points through optimization

Operational Benefits

Beyond cost savings, Residential Fuel Oil Delivery Service experienced:

• Reduced administrative burden with familiar, reliable, automated billing features
• Enhanced customer satisfaction through continuing seamless payment experiences

Service Excellence

The transition to Northeast Fuel Pay restored the specialized support the company had lost:

• Industry-specific expertise from team members who understand fuel delivery
• Support from Maine-based professionals
• Proactive account management and optimization

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Key Takeaways

1. Industry specialization matters: Generic payment processors generally cannot match the savings and service available through industry-specific programs.
2. Proper classification is critical: Ensuring correct MCC classification unlocks significant savings through Visa and MasterCard emerging markets programs.
3. Local expertise adds value: Northeast Fuel Pay’s understanding of Northern New England’s fuel delivery market provides unmatched support.
4. Immediate ROI: Set up costs were $0.00, and the savings were implemented immediately upon approval and integration.

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About Northeast Fuel Pay

Northeast Fuel Pay specializes in discounted payment processing exclusively for oil, propane, fuel, utility, and curbside trash providers. Based in Portland, Maine, we understand the unique challenges faced by essential service providers in Northern New England. Our expertise in Visa and MasterCard Emerging Markets programs helps businesses reduce credit card transaction fees, streamline payments, and improve cash flow.

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Note: Individual savings will vary significantly based on business size, previous pricing, and other factors. This case study represents a specific client boarded in 2025.

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Ready to discover your savings potential? Contact Northeast Fuel Pay today for a free consultation and see how much you could save on payment processing.