BY MARCI GAGNON
American Express Expands Utility Program
American Express has expanded its utility program for Energy Marketers .
American Express recently announced changes to its OptBlue program , including price changes and volume increases for Energy Marketers . For Marketers set up correctly under this program , American Express transactions will enjoy an Interchange rate of $ 0.75 on transactions below $ 1,000 and 1.5 % on sales $ 1,000 and greater .
While the program originally launched in the fall of 2022 , there has been some confusion among processors . Below are some quick program highlights to make sure the new program will be a good fit for your business .
• The American Express Utility program has only been rolled out for the OptBlue program ; accounts direct with AMEX are not eligible .
• Previously , the OptBlue program had a cap of $ 1M in American Express volume per year . The new Utility program removes this cap and allows companies to return to the OptBlue program . Aside from reduced pricing on American Express , the OptBlue program allows for all cards to be deposited in your bank account in the same batch , easing reconciliation and reporting .
• If your business currently has a direct account with American Express , contact your processor to assist in running a quick analysis . Depending on your current pricing with American Express , and the amount of business over / under the threshold , it may make sense to stay direct . For instance , if your current rate with American Express direct is 1 % and the majority of your transactions are $ 1500 , the program may not be a good fit for your business . This is not usually the case , however better to know up front .
• For Marketers that have an American Express direct account and wish to change into the OptBlue program you will need to confirm that your processor can handle the change seamlessly . Batch times between your normal processing and American Express direct may conflict , causing some reconciliation challenges .
• If your business is moving from a direct American Express relationship or just starting to accept American Express , confirm the pricing structure with your processor . Some processors may add additional fees , while
this is not necessarily a bad thing , make sure you fully understand the pricing structure before you agree to make the change .
• If your processing account has multiple DBA ’ s or brands combined into one merchant account , please be advised that American Express OptBlue can only show one business descriptor . This means that you need to show the same descriptor for all brands or create individual merchant accounts .
• If your business is currently running a pre-authorization program , be advised that American Express does not have the ability to reverse the unused amount immediately . For instance , say a customer pre-authorizes $ 500 , but the charge is only $ 450 . With the other card brands , once a capture is performed , the extra $ 50 will drop quickly . It ’ s worth noting that with American Express , the drop after capture will take longer .
While the program does have some quirks , these changes offer an opportunity to now have 3 card types in utility programs , saving your business an incredible amount on payment acceptance costs . In addition , all card types can now be funded together to your depository bank account , with a single point of contact for reconciliation , dispute management and billing . Make sure you are properly enrolled for American Express this heating season to take advantage of the new program , it ’ s a game changer . If you have any questions on the new American Express utility program or want to know if your company is set up properly , reach out to your processor or Qualpay and we can review the program in more detail . l FON
Marci Gagnon is the Vice President of Strategic Alliances for Qualpay and has been in the payments industry for over 15 years with a concentration on recurring billing and the Energy space . Qualpay provides processing solutions to fuel delivery and service businesses with tools designed to provide real-time reconciliation and cost reduction . For additional information contact Marci Gagnon at marci @ qualpay . com or visit https :// www . qualpay . com / industry / utility-and-energy
26 FEBRUARY 2023 | FUEL OIL NEWS | www . fueloilnews . com