Despite what most have been lead to believe 75%-80% of the fees businesses pay to accept credit cards goes directly to the bank that issued the credit card, and referred to as Interchange.
Interchange fees are non-negotiable and remain the same regardless of the processor you choose.
Believe it or not, Visa, MasterCard and your credit card
processor do not receive any income from interchange fees.
This is why you see so many offers for zero percent interest and no annual fees from credit card issuing banks.
Even if the cardholder pays the balance each month in full or carries a
balance at zero percent, the issuing bank stills makes a profit-which is the Interchange portion (cost) of your merchant
Getting a low rate and interchange pass through pricing is important, but a processor’s markup accounts for a relatively small portion of expense when compared to fixed costs (interchange and assessments).
Let’s focus on the bulk of your expenses.
How to capture a large chunk of interchange revenue that will otherwise go back to the card Issuers?
Revolution Payments can automate interchange rate qualification by AUTOMATICALLY sending level-2 and level-3 processing detail on your behalf across all payment channels- swipe, mobile, key entered,online, etc.
How does this reduce your cost?
Commercial, Purchase, Business and Government Cards have tiered
interchange rates and fall into one of three interchange categories; Level-1, Level-2 or Level-3.
This is based on additional transaction detail passed with these transactions. level-2 & level-3 lowers (interchange) by 30%-40% and happens on an interchange level before processors add their markup
You may have a great rate from your bank or processor and realize you probably receive dozens of calls from processors all promising to lower your rate, however, your interchange cost from passing Level-3 vs not can be as high as 1.5%.
Making sure you have the correct structure and our ability to automate interchange qualification can add up to 1.5% (new) interchange revenue regardless of your current rate or processor.
If adding up to 1.5% new revenue on the commercial, business, corp, purchasing and or government cards your accepting has any significance I welcome the opportunity for a discussion or provide a no obligation side-by-side confidential analysis?
Fax a recent statement to 877-351-0195 or upload a recent statement HERE
I know you’re very busy and value your time as much as my own. If open, I’ll show you this new revenue opportunity before discussing any savings as a result of pitching you a lower rate
PS. This is an opportunity to add up to 1.5% additional revenue to your bottom line that you cannot receive from processors and will otherwise go back to the card issuers, not processors.