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Propane vs. Utility

Rules, regulations and pricing for propane marketers and suppliers.

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CAN PROPANE MARKETERS PROCESS AS A UTILITY?

MasterCard and Visa differ in their rules and regulations regarding MCC 4900.

According to MasterCard, the MasterCard Utility Industry Program is open to companies whose primary business is the ongoing generation, transmission, or distribution of electric or gas power, home heating oil, water system supply services, or the collection and disposal of refuse.

 

However, according to Visa’s rules and regulations, merchants selling propane and heating oil are not eligible to participate in the Utility program. Fortunately, propane and heating oil merchants are allowed to participate in the Emerging Markets program, MCC 5983 (more information below).

WHAT IS EMERGING MARKETS?

Visa developed Emerging Markets MCC 5983. Understanding these merchants are typically in card-not-present environments, Visa set Interchange rates comparable to card-present environments to further promote the usage of their card brand.

 

Please be advised: Visa and MasterCard can change their rules and regulations at any given time; this includes eliminating propane and heating oil merchants from any MCC category.