The following is a re-post of the original article by Gilbarco Veeder-Root that can be read here.
Considering getting into higher fuel blends of ethanol like E15 or E85? Make sure you’re taking advantage of the free money from the Higher Blends Infrastructure Incentive Program (HBIIP).
The U.S. Department of Agriculture is targeting businesses with 10 or fewer sites with the program to encourage more sales and use higher blends of ethanol and biodiesel blends.
E15, E85, and other high blends of ethanol must be stored in specialized compatible equipment. HBIIP funds are being made available to help ease the costs related to upgrading fuel dispensers (gas and diesel pumps) and attached equipment, underground storage tanks, and more.
The number and size of the HBIIP grants will depend on the successful number of applicants. The agency expects to give out about 150 awards, providing assistance to 1,500 locations.
The number and size of the HBIIP grants will depend on the successful number of applicants. The agency expects to give out about 150 awards, providing assistance to 1,500 locations.
Need help navigating clean fuels?
Here’s an article to help you decide which blends are right for your business.
Applications for HBIIP funds are being accepted now through August 13, 2020 11:59 p.m. ET.
The new outdoor EMV deadline will be April 17, 2021. If you haven’t begun your outdoor EMV upgrade, we strongly suggest contacting us as soon as possible.
Please do not hesitate to contact us with any of your EMV questions, concerns or to place an order by calling 1.800.451.4021 or visit us online at johnwkennedyco.com for all your petroleum equipment needs.
The John W. Kennedy Company appreciates your business and continued support!
Upgrade your site with Gilbarco Encore 700s and Patriot Capital
Your customers are looking for secure payments and a great fueling experience. You’re looking to maximize profits and minimize costs.
Now’s The Time to Get Both!
Apply today for quick approval. Financing rates apply to all orders received by March 31, 2019 with shipment by June 30, 2019.
1. Additional terms may apply. Contact us at 1.800.451.4021 for more information and additional program information. 2. Participation in program requires credit approval by Patriot Capital. Program may be altered or terminated prior to March 31, 2019.
If you have any further questions, would like to talk about financing options, equipment upgrades or to place your order, do not hesitate to contact us at 1.800.451.4021 oremail uswith your inquiries.
The John W. Kennedy Company appreciates your business and continued support!
You have options in how you finance your fueling and convenience store equipment. Adding new EMV gas pumps, POS, LED’s, storage tanks or EMV upgrades? View the short video below to learn how business equipment financing and leasing for your convenience store compares with other loan and borrowing options.
Our good friends at Patriot Capital have asked us to share one of the benefits of the new tax laws; expansion of Section 179 and Bonus Depreciation!
As Richard Browne, Patriot Capital Vice-President and Marketing puts it, “Bottom line, most dealers and jobbers will be able to deduct 100% of their equipment purchases in the first year, rather than over the traditional seven years. This has some significant tax benefits for them.”
Click hereto see the document that explains accelerated depreciation on page 1, summarizes the changes on page 2 and gives an example of how it works on page 3.
If you are looking to purchase new equipment and would like to take advantage of these expanded tax benefits, give us a call at 1.800.451.4021 today! We can also work with Patriot Capital to help with your financing.
The John W. Kennedy Company appreciates your business and continued support!
ATLANTA — Labor Day may have just passed, but it is not too early to think about April. Optimizing your taxes requires some advanced planning that can yield big savings. With changes to the tax code in the wind, 2017 may be the last time some deductions are available or are as valuable. Two tax savings strategies that can help you reduce your 2017 taxes are Section 179 and bonus depreciation.
Both Section 179 and bonus depreciation are forms of “accelerated depreciation.” These strategies allow you to recoup all or a significant portion of an asset’s depreciation in the first tax year the equipment is put into use.
To take advantage of these deductions, equipment must be installed and in service by Dec. 31, 2017. With current lead times on some equipment reaching six weeks, plus additional lead times for scheduling installation, waiting much longer may put these tax savings out of reach for 2017.
Let’s consider a convenience store that upgrades gas pumps, does canopy and brand-imaging work and installs new beer caves at a total cost of $350,000. Normally, this business may depreciate this investment over something like seven years, getting an annual tax deduction of $50,000. Under Section 179, a business may deduct up to $500,000 of capital equipment purchases in year one. In this case, the business could deduct all $350,000 in 2017. If the business is in a 30% tax bracket, this would generate $105,000 in both tax savings and incremental cash flow.
If this same site also undertook a tank upgrade and new price signs, the $350,000 spend could become $650,000. Bonus depreciation kicks in above $500,000 and allows c-store business owners to deduct 50% of the amount between $500,000 and $2 million as first-year depreciation. In this example, the retailer could deduct $500,000 at 100%, and $150,000 at 50%, for a total 2017 deduction of $575,000. At a 30% tax rate, this would yield $172,000 of tax and cash-flow benefits.
Act now
It is important to note a couple of things as you consider how to use these strategies for your business:
The 50% deduction for bonus depreciation falls to 40% in 2018 and 30% in 2019 under the current tax act. If the proposed changes by the Trump administration to the tax act result in lower corporate taxes, the value of depreciation may be lower, resulting in the after-tax cost of equipment increasing by more than 25%.
At this time, it’s unclear if Section 179 or bonus depreciation will survive any changes to the tax act. It is possible that tax-code revisions will eliminate these incentives to boost near-term tax revenue to help offset the effect of lower corporate tax rates.
The Wall Street Journal recently pointed out that “most midsize and smaller firms pay much higher rates” than larger corporations. Section 179 and bonus depreciation are incentives designed to benefit smaller companies. Consider using them while there’s still time this year, and while they are still available.
Patriot Capital, a division of State Bank and Trust Co., specializes in enabling entrepreneurs to succeed by providing hassle-free equipment financing in the retail and commercial-fueling verticals and other retail and manufacturing industries.
Working with its customers to enable them to optimize their financing and capital structures, Patriot Capital is the leading provider of capital equipment financing and leasing to NACS (National Association of Convenience Stores) and SIGMA (Society of Independent Gasoline Marketers of America) members.
The John W. Kennedy Company appreciates your business and continued support!
Why Wait? Qualified Customers Get No Payments on Equipment and Installation.
If you are considering upgrading your site, there’s never been a better time. Lock in today’s low interest rates through December 2022 when you finance your new gas pumps, point of sale, underground storage tanks or other fueling or in-store equipment.
Order by November 30, 2017. Equipment installed by December 31, 2017 is eligible for Section 179 tax savings in 2017.
Our friends and partners at Patriot Capital would love to help you finance those upgrades.
In our ongoing efforts to educate and inform, our partners at Patriot Capital have asked us to share the following article written by Fredrick Kunkle that appeared in the Washington Post on June 16, 2017. Read the original article here.
When you’re filling your car at the gas pump this summer, you could be also be giving a thief access to your bank account or credit card.
Gas stations are a chief target of criminals who use data-grabbing skimmers to siphon data from drivers’ credit and ATM cards, according to law enforcement officials and gas retailers. Almost daily, the secretive and illegal devices are discovered at gas stations across the country, such as here, here and here. Earlier this month, Fairfax County police reported finding 21 skimmers at 15 different locations in the past year.
Skimmers work like legitimate banking card readers, but they are secretly installed in or on the pumps by criminals to steal people’s financial data. Gas stations are particularly vulnerable, but banks and other businesses have also been hit.
“The people who are doing skimming — it’s amazing, some of the things they do,” said Lyle Beckwith, senior vice president for government relations at the National Association of Convenience Stores (NACS).
Gas stations are targeted because of their physical layout and the volume of their business. Thieves find it relatively easy to use gas station islands as cover while they tamper with the machines, Beckwith said. The devices are placed either inside the pumps by thieves who jimmy them open or outside the pumps using overlays on the pump’s card reader. Usually, thieves put one skimmer in a single gas station, but that one device can capture a lot of card data.
NACS, which represents more than 2,100 retailers, says nearly 80 percent of the fuel in the United States is retailed through them. Although only a small fraction of those fill-ups get skimmed, a small fraction of 29 million daily fuel customers can mean a lot. A single skimmer can collect data from 30 to 100 cards a day, NACS says.
The National Association of Convenience Stores (NACS) says special sealing tape can help consumers and gas station operators spot pumps that have been tampered with. (Screen grab from NACS video; courtesy of NACS)
The National Association of Convenience Stores (NACS) says special sealing tape can help consumers and gas station operators spot pumps that have been tampered with. (Screen grab from NACS video; courtesy of NACS)
To counter them, retailers have been sealing the pumps with special tape. If you see that the seal is broken, you should not use the machine and should alert the operator, he said.
Retailers think the problem will diminish once consumers and retailers fully adopt chip technology, according to Rob Underwood, president of the Petroleum Marketers Association of America.
“As of now, there is a wait time for retailers to have access to the new equipment, which costs around $20,000 per pump,” Underwood said in an email. He said consumers and retailers will still remain vulnerable to fraud until credit card companies allow retailers to require consumers to use PINs on transactions.
NACS has produced a video for its retailers that’s also helpful for consumers, which you can view here:
Here are some tips from law enforcement officials and retailers to protect you at the pump:
Use cards with PIN numbers
You’re better off using a card with a PIN if you buy gas, according to NACS and PMAA. NACS, citing a 2013 Federal Reserve study, says you’re four times more likely to be ripped off if your transaction is made without a PIN.
“Signature-based transactions are processed on the antiquated Visa and MasterCard systems that do not process in real-time, versus the instant operation of PIN debit. Not using PIN also increases the cost of the transactions, which is passed back to the consumer,” NACS says. It also says that even old dispensers have technology to encrypt PIN numbers, and that gas pumps have been equipped with them since the early 1990s. “PINs provide a higher level of security. That is why banks require them for transactions at ATMs,” it says.
However, it should be noted that Fairfax County police say that if you’re ripped off via a credit card, you have more protection as a consumer than if the thieves do somehow get your PIN and access to your bank account.
“When the money comes out of that bank account, it’s a lot more difficult to get reimbursed,” Fairfax County Police Officer Tawny Wright said.
That said, the retailers — who bear the cost for fraud — still say they think customers are better off using the PIN.
Avoid older gas pumps if you can
These pumps are easier to break into and tamper with. Newer pumps have technology to prevent being ripped off.
Check to see whether the pump has been tampered with
Thieves install internal devices by opening the pumps and putting them inside. But gas stations have fought back by using serial-numbered security tape that track the reasons why the dispenser door was opened. If the tape is cut, damaged or broken, it should “bleed” to alert people that it’s been tampered with, NACS says.
For external skimmers, which are installed over an existing keypad, look to see if the keypad is raised. You can do this by running your fingernail along the edge, NACS says. The skimmer may also be loose or wiggle when you touch it.
Police said newer Bluetooth skimmers are particularly tricky to detect because they can be hidden entirely inside the pumps.
There’s an app for that
Retailers can use the SkimDefend app, along with special NACS tamper-alert decals, to track attempts to mess with the pumps.
What should you do if you suspect a pump has been tampered with?
Customers should alert the gas station operator, who should shut the pump down immediately and have it inspected by a technician.
NACS also advises that no one, including the technician, should touch or remove the device. Let the police handle it. In large cases, the FBI and Secret Service sometimes get involved, NACS says.
Check your banking and credit card statements frequently for suspicious charges
If you see anything out of order, call your bank or credit company to report it right away.
If you are a petroleum retailer unsure as to whether now is the time to upgrade your equipment with EMV technology, have questions about equipment and/or financing, we invite you to contact us at 1.800.451.4021 and along with our partners at Patriot Capital, we can explore your equipment and financing options to ensure your location(s) have the latest and greatest data security and your customers’ bank accounts and credit cards are safe from such data skimming technology and practices.
We appreciate your continued business and support!
With all merchants who accept credit cards facing the impending shift to the EMV standards, our partners at Petroleum Processing Solutions will be providing us with some helpful information to guide you through the EMV mine field of equipment, processing standards and requirements all will face in the next few years.
EMVCo is a worldwide group comprised of six member organizations (American Express, Discover, JCB, MasterCard, UnionPay, and Visa) and supported by numerous banks, vendors, and other industry stakeholders who act as associates. Among these associates, EMVCo is managed by a Board of Managers and an Executive Committee, as well as various Working Groups. Their goal is to facilitate the most secure payment transactions possible through utilizing and evolving the EMV Specifications through processes such as card and terminal evaluation, security evaluation, and management of interoperability issues.
Since the shift began towards EMV began here in America a year and a half ago, vendors and industry professionals have had to implement a great deal of new technology and processes into their businesses. Because it is an ongoing process, many questions are often asked about EMV, including what makes them more secure than traditional cards, how they are used, if “card-dipping” is the only way to use them, whether or not they will require a PIN, who will be liable for costs in the event of fraud, whether or not the shift EMV is complete, if an EMV card will work at a retailer not yet supporting the technology, and if an EMV card can be used while traveling outside the country.
Introducing EMV technology has come with its fair share of challenges and difficulties. According to industry professionals, certain trends have been established, and from these trends, the course of the payment industry can be speculated going forward. Among these findings are that most customers have chip cards in their possession, and that more stores will be accepting them in 2017. As well, chip cards have been found to reduce counterfeit fraud and protect the card’s magnetic stripe (while they remain), and thanks to using data from the previous year and a half to improve the technology, transactions using the chip are now much faster and easier. In addition, the loud beeping noises from EMV terminals are not likely to be necessary anymore. Also, while ATM card skimming fraud saw a rise in activity during 2016, upgraded ATMs compatible with EMV technology should deter further card skimming.
As EMV becomes the standard in payment processing technology, having the technology capable of accepting chip cards will no longer be an option for merchants. As of now, magnetic stripes are still accepted as the transition continues, but businesses that do not support the more secure EMV transactions could pay a heavy cost in the event of fraudulent transactions. As of October 1, 2015, a global POS counterfeit fraud liability shift went into effect in the United States, which holds that merchants that are not EMV certified are liable for any fraud resulting from a transaction with a customer in possession of a chip-enabled card.
If you would like to learn more about EMV and/or Petroleum Processing Solutions, contact us at (800) 451-4021.
The John W. Kennedy Company appreciates your business and continued support!
Does Trump’s Tax Plan Mean Higher Costs for C-Stores?
President Trump has announced one of the largest tax cuts in history. The changes will impact most American businesses, including convenience stores.
The planned reduction of taxes proposed for “for corporations, small businesses and partnerships of all sizes” is the headline story. At the same time, the maximum personal income tax rate is proposed to be 35 percent and the number of personal tax rates would drop from seven tiers to three (35 percent, 25 percent, 10 percent).
Considerations for your business include:
lower tax rates mean higher after tax costs for equipment due to lower depreciation
if the Border Adjustment Tax comes into effect, higher prices for imported components and equipment
Three Factors to Consider When Purchasing Convenience Store Equipment
Chris Santy, President of Patriot Capital, shares some key points that need to be considered when deciding whether to invest in equipment upgrades in this article.
When making any investment decision, the first consideration always should be the return on your investment (ROI), Santy’s article discusses three important ROI concerns to consider:
What is the cost of the equipment or investment?
What will the equipment earn?
What could happen to make the return on investment different than expected?
Patriot Capital offers a variety of equipment financing options for C-stores, fuel marketers and jobbers. To get a quick quote, or find an advisor near you, visit the Patriot Capital website or call (877) 527-0383.
NACS Survey Reveals What Fuel Prices Would Trigger Driving Changes
Fuel customers will change their driving habits to decrease their fuel consumption once gas prices reach $3.37 per gallon, according to a new NACS Consumer Fuels Survey. The price would have to hit $4.43 before consumers will drastically decrease their driving.
The price of gas also affects how consumers think about broader economic issues. Other issues the survey explored include expectations on future fuel prices, generational differences in consumer attitudes, and consumer perceptions on the reasons for fuel price increases – the good news is they don’t tend to blame the fuel retailer.
Dirty Pumps, Restrooms Cited Among ‘Four Sins of Fuel Retail’
Filthy gas pumps, malfunctioning card readers, unwelcoming stores, and dirty restrooms are cited as the top “Four Sins of Fuel Retail” in a recent editorial by industry strategist Norman Turiano.
Cleanliness at the pumps tops the list. Turiano points out that female consumers are especially reluctant to touch a visibly dirty pump, and this can drive away business.
Dirty restrooms make customers question overall cleanliness, and particularly. wonder about the healthiness of on-site prepared food. Does your site have the right focus on the ‘Four Sins’?
Consumer Optimism Remains High Despite Fuel Price Increases
Consumer optimism is at an all-time high despite rising gas prices, according to a NACS National Consumer Fuel Survey. NACS reports that 61 percent of consumers feel optimistic about the economy, the highest number in the 4-year history of the monthly survey.
Drivers remain optimistic despite the fact that a majority of gasoline consumers expect prices to increase in the next month. Slightly more than half of all Americans report they expect prices to be “much higher” or “somewhat higher”, while only 9 percent expect prices to drop.
Traditionally, rising prices result in decreased consumer optimist. Four years ago, when 85 percent of Americans said that gas prices had increased, 41 percent were optimistic. However, gas prices were more than $1 per gallon higher in 2013 than they are today.
The John W. Kennedy Company appreciates your business and continued support!
The following article was written by Richard Browne of Patriot Capital for www.cspdailynews.com. Read the original article here.
ATLANTA — There was a collective sigh of relief on Dec. 1, when Visa, followed quickly by MasterCard, announced a shift in the forecourt gas-pump liability date from 2017 to 2020. I believe there also was a smile in some boardrooms, as retailers that already have invested see an opportunity to capture gallons and inside sales.
Industry reports suggest that about 33% of dispensers in the market are capable of processing payments to Europay MasterCard Visa (EMV) data-security standards with either a software or small hardware upgrade. This represents dispensers installed since 2011, when both Wayne and Gilbarco started shipping “EMV-ready” dispensers. Both manufacturers are reportedly close to or have released the required software to enable EMV, and there’s high probability that many networks will be processing EMV from pumps by mid- to late 2017.
So what?
Consumers are quickly becoming used to using a chip card. They are aware of the reason for it: increased security. Crooks are aware of EMV, and can quickly identify fuel dispensers that have—or don’t have—EMV payment enabled.
I believe we’ll see two things happen:
Consumers will shift their buying behavior to EMV-enabled gas pumps, starting in 2017. A high percentage of your customers have had one of their cards breached in the past and want the most secure transaction possible. In Europe and Canada, which have completed their implementation, retailers saw gallons shift to “secure” EMV sites from those that hadn’t yet been upgraded. Switching costs are low in our industry; it’s very easy for a customer to drive another block for a safer experience.
Criminals will have a shrinking number of sites to target. About 10% of dispensers are replaced each year. This suggests that, with no acceleration in upgrades, more than 50% of dispensers will be EMV-enabled in 2018, and 70% in 2020. The crooks have got to eat, and they will have half the sites to target that they had in 2015. Combine this with EMV implemented at restaurants and retail, and the potential places to commit card fraud becomes a small target.
Gray Taylor, executive director of Conexxus, said that Visa and MasterCard’s delay announcements appear to not clearly delay liability for retailers who experience higher fraud rates or those accepting foreign-issued cards. “We don’t see this announcement as a true game delay, but a bit of breathing room,” he said.
It is important to review your fraud liability with your processor, and understand Visa and MasterCard’s plans and how increased fraud may affect you.
It’s highly unlikely that we’ll see the liability upgrade deadline move again. With the installed EMV base naturally approaching 80% or more dispensers, the arguments that caused the date to move have less sway, and all other U.S. payments markets will have been EMV-enabled for five years.
Waiting will get more expensive. It’s generally anticipated that the new administration’s economic plans will result in higher inflation and interest rates. Combine this with promised lower tax rates, which effectively reduce the benefits of capital depreciation and makes equipment more expensive on a net-cost basis, and increases in labor costs, and waiting will be expensive. For multisite operators, the change in bonus depreciation from 50% today to 30% in 2019 and 0% in 2020 can have a significant cash-flow impact.
Competitors that have upgraded to new pumps will have enhanced marketing capabilities that the newest pumps provide. Video screens and contactless payment provide marketing options that can increase adoption of customer-loyalty programs and drive more traffic into your store.
The bottom line: Delaying pump EMV upgrades means potential market-share loss and higher fraud risk for your site. Consumers—and crooks—will know who’s made the move.
The John W. Kennedy Company appreciates your business and continued support!
The number and size of the HBIIP grants will depend on the successful number of applicants. The agency expects to give out about 150 awards, providing assistance to 1,500 locations.
If you are considering upgrading your site, there’s never been a better time. Lock in today’s low interest rates through December 2022 when you 
finance your new gas pumps, point of sale, underground storage tanks or other fueling or in-store equipment.
Order by November 30, 2017. Equipment installed by December 31, 2017 is eligible for Section 179 tax savings in 2017.
With all merchants who accept credit cards facing the impending shift to the EMV standards, our partners at 
American businesses, including convenience stores.
$3.37 per gallon, according to a new NACS 
top “Four Sins of Fuel Retail” in a 
Consumer Fuel Survey