EMA Asks Visa to Extend Utility Interchange Rates to Delivered Heating Fuels

The Energy Marketers of America (EMA) has formally requested that Visa expand eligibility under its CPS/Utility interchange program — or an equivalent flat-fee utility rate structure — to delivered residential and commercial heating fuels classified under Merchant Category Code (MCC) 5983 (Fuel Dealers – Fuel Oil, Wood, Coal, and Liquefied Petroleum).

In a letter to Visa’s Merchant Relations team, EMA noted that member companies supply heating oil, propane, Bioheat blends, and related fuels to more than five million homes and businesses nationwide. Those deliveries are an essential household energy service, comparable in character and risk profile to the electric, natural gas, water, and sanitary services that already qualify for Visa’s preferential utility rates under MCC 4900. Visa’s published rules currently exclude propane, home heating oil, and similar delivered fuels from MCC 4900 eligibility and from the associated CPS/Utility flat-fee structure, commonly $0.75 per transaction on many consumer credit products, including Signature and Signature Preferred cards. Mastercard, by contrast, has long allowed the same fuel dealers to qualify for low flat utility-style rates. The result is a material cost disparity: Visa premium rewards cards often clear at significantly higher percentage-based rates even when the transaction is a routine, low-risk home energy delivery.

EMA told Visa the disparity places independent heating-fuel marketers — already operating on thin margins — at a competitive disadvantage and raises the cost of providing an essential service. Extending utility-rate eligibility to MCC 5983 transactions, or creating a parallel flat-fee program for delivered heating fuels, would: Align Visa treatment more closely with Mastercard practice and with the low-risk nature of these payments; Reduce processing costs that are ultimately borne by consumers or absorbed by small businesses; Recognize the essential, utility-like role of delivered heating fuels, particularly in regions without natural-gas infrastructure; and Support Visa’s broader goal of promoting card acceptance for recurring essential services.

EMA emphasized that any change should preserve program integrity, including appropriate data requirements, registration (such as Merchant Verification Value where applicable), and safeguards against misuse. The association said it is prepared to work with Visa, member acquirers, and processors to define clear eligibility criteria limited to bona fide residential and commercial heating-fuel deliveries. EMA will keep members informed once Visa responds.