TEXOR PETROELUM COMPANY

FUELING PERFORMANCE NEWSLETTER

2ND QUARTER 2008

 

ALL DEALERS

 

There is a huge problem in the Chicago area with fraud at the pumps.  The fraudsters are climbing on rooftops and are putting tin foil over the nose of the satellite dish causing it to not transmit to the credit card centers.  What this does is put your POS system in what is called store and forward mode.  This causes the transactions to be stored in your POS system and then forward them when the communications are restored.  The fraudsters then use gift or cash cards to activate the pumps and pump away.  There then is no communication to deplete the cash off of the card thus they can be used over and over.  If you notice a communication error on your POS system, immediately call the help desk and then go look at the satellite dish to see if it has been tampered with.  This has happened numerous times in the area and we need to be very proactive to stop this problem.  If there is anyway you can secure the area around your satellite please take this action.

 

The IRS has instructed fuel compliance officers to enforce EPA sulfur standards:  The IRS Excise Tax Program recently issued interim guidance providing instruction to fuel compliance officers on how to enforce EPA diesel fuel sulfur standards at retail sites.  The guidance is important to petroleum marketers because it means the IRS will now be checking the sulfur content of diesel fuel during routine inspections.

 

All Texor retail sites are receiving Ultra Low Sulfur Diesel fuel (15ppm max sulfur) and the pumps have been labeled as such.  Please check your diesel dispensers and make sure that the labels are still in place.  If you need additional labels, please contact your Texor representative.

 

SHELL OIL COMPANY

 

Texor is pleased to announce that we have become a Shell Oil distributor.  There are going to be many exciting opportunities coming our way with Shell in the near future.

 

Shell has announced that it is cutting some credit card fees, effective Aug. 1. The company will reduce debit card fees from 1.5% plus 10cts per transaction to 0.85% plus 15cts, and will cut AMEX charges from 2.45% plus 15cts to 2.35% plus 15cts.  Wright Express charges get lowered from 2.9% plus 30cts to 2.35% plus 30cts and Discover sees the processing rate cut from 2.5% to 2% with the transaction fee remaining at 10cts. Visa rates didn't technically change, but Shell extended the temporary rate of 1.75% plus 13cts for a month beyond its original July 31 expiration date.

There was no change to the MasterCard rate which remains at 1.65%, plus 13cts.

Shell estimates that the cuts add up to annual savings for a 20- million gal/year marketer of $100,000, or about $9,000 for a 1.8-million gal/year retailer.

 

EXXON MOBIL

 

ExxonMobil is pleased to announce the unveiling of a co-brand MasterCard to its credit card deck.  The highlight for retailers is that it is a zero fee card, unlike the conventional bank card.  The card will be available in late July or early August.  It will feature 30 cents per gallon rebate during the first 60 days after activation and then 15 cents thereafter.  This card will be promoted during the 3rd trimester POP advertising wave.  Please take advantage of this exciting program.

 

ExxonMobil has responded to complaints by Jobbers by raising its CRIND limits on Visa and proprietary cards.  New limits are:

 

Card Type                              Current Limit             New Limit

Exxon Mobil Personal               $100                                        $125

Visa Consumer             $ 75                                         $100

Exxon Mobil Bus. Card            $100                                        $150

Exxon Mobil Bus. SP               $100                                        $150

ExxonMobil Fleet Card            $200                                        $400

ExxonMobil Fleet SP                $200                                        $400

Fuelman                                   $175                                        $300

Voyager Fleet                           $150                                        $250

Wright Express Fleet                $200                                        $400

 

Mobil Mystery shop results continue to decline at most locations.  Please make a constant effort to keep pump areas clean and trash receptacles emptied.  Uniforms and name tags are required for all station employees and help make your location look more professional.  Keeping your location neat and clean only takes minutes a day once you have committed to this program. 

 

CITGO PETROLEUM COMPANY

 

Citgo is kicking off a massive Direct Mail blitz to promote its Fleet business.  The blitz, beginning on September 2, 2008 will offer prospective fleet accounts a $0.05 per gallon rebate on all gallons purchased for the first 90 days after the account is opened.  The mailings will have the name and address of the nearest Citgo location printed in the letter.  If you as a retailer are interested in adding to the rebate to accounts that fuel at your location, please contact Dan Goding at Texor to get set up.  Remember that the fleet cards have no transaction fees to the retailer.

 

MARATHON PETROLEUM COMPANY

 

In recognition of elevated credit card costs to their Branded customers, Marathon is extending its previously announced temporary reduction in credit card fees through August 31, 2008 for Visa, MasterCard, Discover and American Express.  Thus, Visa and MasterCard fees will remain at 1.89% plus 12 cents per transaction.  American express rates are 2.6% plus 13 cents.  Discover discount rates are 1.75% plus 15 cents per transaction.

 

Please continue to monitor your locations for the Customer First cleanliness program.  In these times of high gas prices, a clean inviting location is more important than ever.  Your Texor representative is more than happy to conduct an inspection and point out what needs to be done to ensure your location is up to speed.  Remember, failures at Marathon locations cost you money.

 

VALERO ENERGY CORPORATION

 

Valero has developed a new “Pump-A-Discount” (PAD) program which is designed to help marketers reduce credit card costs by shifting consumers to no-cost cash and no-cost Valero Private Label Credit Card transactions throughout the entire year!  The PAD Program provides cash and Valero Private Label Credit Card discount signage and marketing materials at no cost to our marketers.  Additional signage and materials are available for purchase.  Please contact your marketing representative for additional details.

 

Effective June 1st, Valero raised CRIND limits on its Visa, MasterCard, American Express and Discover transactions as well as its private label credit card.  The new limits are as follows:

 

Credit Card                  Previous CRIND limit   New CRIND limits w/AVS

 

Valero PL                    $100                                                    $150

Visa                             $75                                                      $100

MasterCard                  $75                                                      $100

Discover                       $75                                                      $100

American Express         $75                                                      $100

 

To participate in the higher CRIND limits, AVS and Velocity must be activated.  If you need help in activating AVS on your EPOS system, you can call the Valero Help Desk at 1-866-4Valero.  Valero will set Velocity automatically (2 and in) when you opt into the program.  Decals will also be sent to be displayed at the dispenser.