Credit Card Processing Keeps Transport Companies on the Road
Stay on the move by partnering with the right credit card processing company. Your transportation business needs flexible, versatile and non-location specific payment options that are also reliable, safe and swift. This ensures profitability and growth for individual companies and the industry as a whole.
Facts and Figures
Statistics show that this sector is huge and poised on a major growth trajectory. Almost everything that we use has to be moved from the manufacturer to retailers and then possibly to customers. In the US, almost 80% of all cargo is transported by trucks and transportation companies. The annual revenue generated by this industry stood at $726 billion in 2016 and is forecast to grow by 75% in 2026. High and low value goods include machinery, electronics, automobiles, pharmaceuticals, hazardous and inflammable materials, food and beverages, fresh produce, and much more.
Apart from this, households, industries, governments and individuals use transportation services when relocating. Hospitality, medical, educational and business sectors rely on transportation companies to move goods and operations to different locations.
Transportation Businesses Are Sometimes Considered High-Risk
Despite the nature and extent of this industry, it can still be considered high risk by banks. This is because of several factors related to people involved and operational issues.
1. Safety is a top concern and largely depends on the truck driver. The average truck driver is aged about 50, may be subject to distractions, fatigue, faulty/negligent driving, speeding, opioid/alcohol abuse, injuries, ill-health. Theft, personal safety, terrorist attacks, crime, and bad weather conditions are other worrisome issues. Breakage, damage or loss of goods can affect revenues.
2. Infrastructure dependent: The industry depends on the road network and suitable infrastructure to ensure the safe dispatch and arrival of cargo. Weather conditions, increased congestion on roads, the deteriorating condition of American roads, delays due to urban traffic snarls etc drive up costs.
3. Lack of adequate regulatory oversight: Though there are stringent regulations regarding hours worked, driver fatigue continues to be a major area of concern in the industry. Other regulations like the Food Safety Modernization act impose strict time limits on food transportation, refrigeration, sanitary conditions, etc. increasing the costs. The industry is prone to frequent chargebacks.
The Right Card Processing Company Can Help
While choosing the right card processing company, keep these points in mind:
- Mobile processing is crucial to your business: collecting payments, fares, issuing receipts, generating reports, paying tolls and fees have to be done on the road. You need industry-compliant card terminals and other mobile equipment
- You need secure debit, credit card with online processing
- Secure payment gateways
- No application fees and affordable rates
- Though monthly processing caps are the norm, if you deal in higher volumes, you can request a new cap after a period of time
- Look for affordable ISO/bank processing costs
- Immediate processing is another essential feature
- Look for systems that are specifically designed for the transportation industry, preferably one that’s exactly like yours
- Domestic and offshore options and multi-currency options if your business extends beyond borders
- Adequate systems for prevention of fraudulent transactions and reduced chargeback fees
For more information on how credit card processing keeps transport companies on the road or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.