It's a heatwave where I am in the Northeast and it got me thinking. So, let's dive into the scorching impact of high temperatures on high-risk merchant categories. It’s hot out there, and our high-risk industries are feeling the burn. Here’s a breakdown of how high temperatures affect these industries and the mitigation strategies that can help.
Agriculture (MCCs 0763, 0780, 0191, 0723)
Impact: High temperatures can severely stress crops, leading to reduced yields and increased incidences of pests and diseases. Farmers need to spend more on water for irrigation, pest control measures, and cooling systems for storage facilities. These added costs can strain cash flow and disrupt payment cycles.
Mitigation Strategy: Invest in Technology
Gateway Feature: Velocity Controls
- Set more than 150 permissions to ensure transactions flow at the right pace, helping manage increased costs and operational complexities associated with high temperatures.
Construction (MCCs 1520, 1771, 1799, 1761)
Impact: Workers are at high risk for heat-related illnesses, which can decrease productivity and increase health risks. High temperatures can also affect the integrity of materials such as concrete and asphalt, leading to potential structural issues and delays in project timelines.
Mitigation Strategy: Enhance Infrastructure
Gateway Feature : Load Balancing
- Built for multi-mid merchant relationships, this feature provides a real-time view of capacity by merchant account, helping manage project timelines and costs effectively even during high temperatures.3. Leverage Data Analytics
Logistics and Transportation (MCCs 4214, 4511, 4733, 478
Impact: High temperatures can reduce fuel efficiency and increase the likelihood of vehicle breakdowns, leading to higher fuel and maintenance costs. Transporting perishable goods becomes more challenging, necessitating enhanced cooling systems and higher operational costs.
Mitigation Strategy: Optimize Energy Use
Gateway Feature: Subscription-based Alternative Payments
- Accepting alternative payment methods and optimizing billing frequency can streamline financial operations, aiding in better management of increased operational costs.
Energy (MCCs 4900, 4931, 5172, 5983)
Impact: High temperatures lead to a surge in demand for air conditioning and cooling, putting strain on energy grids and increasing operational costs for energy providers. This can result in higher utility bills for businesses and consumers.
Mitigation Strategy: Implement Health and Safety Measures
Gateway Feature: Futureproof Your Transactions
- The inclusion of next-gen products and issuing banking solutions in one place helps energy companies manage high-demand periods more effectively, ensuring continuous operations and safety compliance.
Comprehensive Solutions for High-Risk Merchants
Navigating high temperatures and high-risk industries is tough, but with the right tools, businesses can maintain stability and efficiency. The MSD Total Acceptance Gateway provides a suite of tools designed to support high-risk merchants through challenging conditions, including high temperatures. Features like Pay-by-Text , Partner Developer and Merchant Integrations , and More High-Risk Merchant Types Accepted ensure smooth and efficient payment processes, regardless of external conditions.
By integrating these advanced functionalities, high-risk industries can better navigate the financial and operational challenges posed by high temperatures, ensuring business continuity and growth. For more information on how these gateway functionalities can support your business, explore the MSD Total Acceptance Gateway. Phew!