Mudflap Card Program – Merchant Partner Information

Dear Chuck:

As you know, we are very excited to be adding the Mudflap Visa Card Program to the services that we provide to the driver community we both serve.  We are writing to update you regarding some important features of the Card Program.

Commercial Benefits Remain the Same.  The most important point is that you will receive equivalent economics for the goods you sell, and Mudflap drivers will receive the same discounts, as under the Fuel Code Program.  While drivers will need to use the Mudflap Card to participate in the Card Program, you will not need to make any changes to your POS.

Information Processing.  As they do with any fleet card, Visa will provide us with the following information for each Mudflap Card transaction at your locations:  Number of gallons, fuel type, retail price per gallon, non-fuel amount, and line item detail for each item purchased including price, units, code, description, and other data we need to run the Mudflap Card Program.

Transaction Processing. Unlike under the Fuel Code Program, Mudflap Card transactions will be processed and settled to you “business as usual” through your existing Visa processing relationship.  We will not have any role in processing such transactions.

Mudflap True-Up.  Because Visa will charge you a higher interchange rate for Mudflap Card transactions than the Mudflap transaction fee, we will give you a 1.3% interchange rebate to equalize your fees as best possible.

Because you will receive full settlement at retail pump price for Mudflap Card transactions from your processor, Mudflap will also need to recoup the discount we provide to the driver from you.

We will calculate and settle with you the difference between the discount recoupment and the interchange rebate we are giving you, which will equalize the commercial terms of the Card Program with those of the Fuel Code program.  We call this difference the “Mudflap True-Up” and calculate it as follows:

        (Mudflap Rate Adjustment x # of Gallons) - (Interchange Rebate (%) x (Retail Price x # of Gallons)) = Mudflap True-Up

Here is what we mean by these terms:

‍

        “Gallons” means the number of gallons of fuel for a Mudflap Card transaction.

        “Mudflap Rate” means the price that you and Mudflap already agree you will be paid for every gallon sold via Mudflap, expressed in dollars per gallon.

        “Mudflap Rate Adjustment” means the difference between the Retail Price and the Mudflap Rate.

        “Retail Price” means the retail price per gallon of fuel for the transaction.

We will of course remove the Mudflap True-Up for transactions that have been the subject of a chargeback or refund – you won’t owe us the Mudflap True-Up for those.

Card Settlement via Mudflap

You will receive separate Daily Sales and Settlement reports for Mudflap Card transactions, so it is clear which transactions have been processed via Mudflap Fuel Codes and which transactions have been processed via the Mudflap Card.

Please contact us if you have any questions about this important and valuable enhancement to Mudflap and click below so we can be sure you have received and understood this important information.

‍