Capturing level II and Level III payment data on B2B and B2G transactions, can lower your overall cost of accepting these cards by 30%-40%.
Business, government, fleet, commercial, and purchasing cards are used just like personal credit and debit cards. However, they carry higher interchange rates due to the additional functionality, features and capabilities they have over other cards. They also have consolidated billing for multiple cards and enhanced statement reporting.
B2B, commercial and government cards qualify at 1 of 3 “interchange rates”, Level 1, level 2 and level 3. The higher the level the lower the interchange rate. This is very important. Remember 100% of the interchange charges you pay (75%-90% of your total expense) goes back to the bank that issued your customers credit card, Not your processor.
You can qualify for lower interchange rates by collecting level 2 and level 3 payment detail on your B2B & B2G transactions. The ONLY way to receive level 3 interchange rates is by including level 3 data with these transactions.
Even with all of its advantages level 2 and level 3 processing is used infrequently, in fact statistics show us that at least 3 out of 5 merchants who accept commercial cards are not set up properly to accept these cards, meaning they were not set up to pass level 2 and level 3 credit card processing detail, most were set up to accept consumer and check cards.
Setting up your merchant account is different than setting up a standard retail merchant account.
Accepting credit cards from businesses or government w/o including level 3 processing information, you’re paying .85%-1.5% more than you should. Higher interchange rates (level 1) are applied to commercial transactions that do not included level 3 payment detail.
This happens before your processor adds their rate.
Consulting with a level 3 processing payment consultant can help you reduce your overall costs of accepting B2B, purchase or government credit cards by up to 40%. Savings can be further increased for transactions you accept over $5984 by taking advantage of the High Ticket Interchange program.
Just offering you a mere savings each month is not that appealing however, working with an experienced B2B/B2G payment processor will significantly impact your bottom line not only from value enhancing technology capable of supporting level 3 payment data, but with 1% + additional interchange revenue you cannot receive from a processor simply lowering your rate.
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