Transaction Cost Analysis
The table below represents an increasing rate of return that you will have on your fuel margin by converting gallons purchased through the antiquated magnetic stripe method of today’s fuel cards versus the card-less DFConnect™ solution. In effect, this illustrates that as the price of fuel increases, so does the margin differential between funded fuel cards and DFConnect.
Assumptions:
Carrier pays weekly |
Diesel price at 2.50/gal |
Diesel price at 3.00/gal |
Diesel price at 3.50/gal |
Diesel price at 4.00/gal |
Diesel price at 4.50/gal |
Diesel price at 5.00/gal |
| Diesel Transaction (Gallons) |
110 |
110 |
110 |
110 |
110 |
110 |
| Price per gallon |
$2.50 |
$3.00 |
$3.50 |
$4.00 |
$4.50 |
$5.00 |
| Fuel transaction total (example) |
$275 |
$330 |
$385 |
$440 |
$495 |
$550 |
| Current Transaction fee |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
| Current Total transaction fee |
$6.88 |
$8.25 |
$9.63 |
$11.00 |
$12.38 |
$13.75 |
| |
|
|
|
|
|
|
| Typical DFConnect fee |
$0.99 |
$0.99 |
$0.99 |
$0.99 |
$0.99 |
$0.99 |
| Financing cost @ 25% APR |
$1.32 |
$1.59 |
$1.85 |
$2.12 |
$2.38 |
$2.64 |
| Total alternative fee |
$2.31 |
$2.58 |
$2.84 |
$3.11 |
$3.37 |
$3.63 |
| |
|
|
|
|
|
|
| Savings |
$4.56 |
$5.67 |
$6.78 |
$7.89 |
$9.01 |
$10.12 |
| Savings per gallon |
$0.04 |
$0.05 |
$0.06 |
$0.07 |
$0.08 |
$0.09 |
|