To receive payment for delivered products, a shipment notice for fuel deliveries must be sent to the customer. Customers will accept the e-shipment, and funds will be distributed to the seller.
To get paid for transactions occurring on Gasology, merchants will need to set up their treasury accounts, establish default payment and fee accounts, and choose what payment options to offer customers. For more information on these steps, click here.
Once the steps above are completed, a merchant is ready to be to receive payment. The following content outlines how payment occurs on Gasology.
Payment process
When a customer reserves fuel for purchase from a merchant, the payment process starts. This customer could be a fleet, municipality, or a consumer filling up their vehicle; it could also be a merchant like a distributor or gas station purchasing from their supplier.
Gasology collects customer funds for the fuel reservation at the time of purchase and holds those funds in a collateral account. When the customer confirms performance by accepting the fuel shipment in the Customer Delivery manager, payment is delivered to the supplier by Gasology. Gasology transaction fees of $0.0100 per gallon reserved (for future time periods only) will be deducted from the sales proceeds and deposited in the merchant's default Sales Proceeds Account. For a full breakdown of the transaction fee schedule and payment processing fees, refer to www.gasology.com/merchant.
Reservations can also be made on account, where payment and performance (financial transaction and confirmation of delivery) are handled off-platform. For more information about On Account payment, please contact Customer Support.
Holding funds until delivery is completed creates an obligation to perform for the supplier.
Example payment situations
Spot Retail
If a customer is filling up their vehicle with fuel they reserved the same day, Gasology collects payment for the fuel when the customer completes their reservation. Because the fuel pump notifies Gasology that delivery occurred right away and merchant performance is immediately confirmed, funds will be released to the station within the same business day.
Future delivery
Payment is collected at reservation and held in a collateral account until delivery is completed when fuel is reserved for any future period (days, months, years). Once delivery is performed, and the customer has accepted the shipment in the future period, proceeds from the sale will be deposited into the merchant's default account.
Payment when pricing contingently
When a final customer purchases fuel, their fuel could be part of a thread of merchants who priced the fuel contingently. In this scenario, the payment process is still the same as outlined in the previous section. First, funds for the fuel are collected from the final customer by Gasology and held in a collateral account. As delivery is completed between each supplier and customer in the supply chain, a portion of the final consumer's funds are distributed to each supplier.
Delivery could occur at different times for each customer in the transaction thread resulting in payment for fuel at different times; however, this does not impact other parties' payment in the transaction thread. Payment to a supplier only depends on when delivery is completed between the supplier and their immediate customer.
For example: for July 2021, a fleet reserves 7,500 gallons of diesel from a distributor that is pricing contingently on a refiner's price.
At reservation, Gasology collects payment for the 7,500 gallons of diesel from the fleet. July 2021 arrives, and the distributor delivers all 7,500 gallons within the first week of the month, and the fleet confirms delivery by the distributor. Gasology then deposits the funds into the distributor's account.
The refiner delivers the 7,500 gallons owed to the distributor three weeks later. After the distributor confirms performance by accepting the shipment, payment is delivered to the refiner.
As shown in this example, merchant payment is independent of other supplier deliveries in the thread.
For more information on contingent pricing, please refer to the link provided.
What's next
After taking payment you can download all reservation data by navigating to the Activity manager. Visit this article for more information.