RocketFuel Recharge faced a deadline. Zift handled the emergency migration and built a stronger payments foundation.

RocketFuel's move to Zift wasn't entirely a strategic decision. It was urgent. RocketFuel's current payment provider was shutting down a long list of their merchants under a tight deadline. Fortunately a preliminary introduction had already been made with Zift and over the next 4 months Zift helped migrate all their merchants, allowing them to keep processing, and replace both that provider and a secondary vendor while rebuilding the pricing model along the way.

About RocketFuel.

RocketFuel builds software for third-party logistics providers. With recharge metering, advanced rate markups, adjustment reconciliation, claims and disputes, comprehensive billing, reporting, and analytics, their platform gives those 3PLs the tools they need to run efficiently, along with integrated payments designed specifically for the warehouse-shipping workflow that allows 3PL's to stop floating carrier costs.

The Recharge Meter model.

At the center of RocketFuel platform is its Recharge Meter. A 3PL uses RocketFuel to fund prepaid balances with their brands. As fulfillment work is completed, balances are deducted from the Recharge Meter and automatically topped off to keep a minimum balance to support the services being provided. This model solves a real cash flow challenge for the 3PL industry. Instead of completing shipments and then chasing payment, the 3PL works against funds that have already been collected. The result is fewer individual transactions, simpler reconciliation, and less time spent on managing the financial side of fulfillment.

How the Recharge Meter works

A brand customer funds a prepaid balance upfront which allows the 3PL to draw from the balance as services are completed. All of which is automated through the RocketFuel fintech platform's integration with Zift.

The urgent deadline.

Before Zift, RocketFuel relied on a primary payments provider that lacked fundamental understanding of the business model, was not a strategic partner, and had no payment monetization upside. The arrangement was ok until their primary provider issued a list of merchant accounts scheduled for closure without a good explanation or willingness to understand the business model.

Rocket Fuel Recharge had to move those merchants quickly or risk interrupting payment services for its customers. That deadline turned what might have been a gradual migration into an urgent transition to Zift.

Three phases of work.

The Rocket Fuel implementation unfolded in three phases. Zift addressed the immediate risk first, then improved transaction qualification and rebuilt the broader pricing model without delaying the work that came next.

Cost-plus, not flat-rate.

RocketFuel launched with a flat rate pricing model of 2.9% + 30¢ per transaction which they inherited from their previous provider. Unfortunately that model did not fit its payment mix. Business and corporate rewards cards, which make up a large share of their B2B 3PL transactions, can carry high interchange costs. A flat 2.9% left little to no room for processing margin. Zift's approach is different. We support multiple pricing models, including flat-rate, blended, and cost-plus, and help partners choose the structure that best fits the partner's transaction profile. For Rocket Fuel's B2B card mix, cost-plus was the model where the math worked for everyone from the 3PL, to RocketFuel and Zift.

AVS and card qualification.

Card costs depend not only on the pricing model, but also on how each transaction qualifies for interchange. Capturing complete billing address data supports Address Verification Service checks and can help transactions qualify for better rates when the other requirements are met.

A few months into processing, Zift identified that RocketFuel was not collecting the address data needed for AVS. Zift worked with the team to update the payment flow so the information was captured at the right point. That change along with passing additional enhanced data in the transaction improved qualification and strengthened the economics behind the cost plus model for the 3PL merchants.

What Rocket Fuel uses today.

Rocket Fuel relies on an API-driven payments setup built around its recharge meter model. The platform supports stored payment methods for both credit/debit card and ACH, custom reporting and deposit details and cost-plus pricing aligned with its B2B card mix.

Reporting and reconciliation

RocketFuel needed the reporting layer to serve both the 3PL warehouse (the merchant) and RocketFuel itself (the platform). Warehouse operators need a clear view of deposits and the transactions behind them. Zift's reporting API made it possible to show deposits and reconcile the transactions and payments that make up those deposits.

Pricing built around the business

A single pricing model does not work for every partner. Rocket Fuel Recharge's B2B card mix made flat-rate pricing difficult to sustain, while cost-plus created a clearer and more workable structure. Zift's flexibility to match the pricing model to the transaction profile helped make the partnership successful and supports other partners with similarly complex payment mixes.

Partnership results.

• Emergency merchant migration completed on time. Zift moved the merchants facing account closures onto a stable processing environment before the deadline, preventing an interruption in payment services.
• Cost-plus pricing created a sustainable business model. The flat-rate model did not work with Rocket Fuel Recharge's B2B card mix. Zift replaced it with cost plus pricing that passes through interchange and applies a clear markup, creating a model that works for Rocket Fuel Recharge, its merchants, and Zift.
• Better address data improved card qualification. Zift worked with Rocket Fuel Recharge to start collecting billing address data, improving qualification rates on transactions and strengthened the pricing model.
• One reporting supports two-audiences. Third-party logistics providers receive the deposit and transaction details they need, while Rocket Fuel Recharge gets visibility into volume and margin. Both views come from the same Zift data source.
• Flexible pricing unlocked stronger monetization. Rocket Fuel Recharge's experience shows why one pricing model does not fit every payment program. Zift's ability to support flat rate, blended, and cost plus pricing helps partners build a model around their actual transaction mix and revenue goals.