Level 2 & Level 3 Credit Card Processing Information
Revolution Payments and our specialized Level 2 & Level 3 processing solution for (B2B) Business-to-Business & (B2G) Business-to-Government credit card transactions can add roughly 1% to your profit margins without having to increase your sales volume.
90% or more of the people we contact, initially overlook this because they think it has to do with merchant services and under the impression we are trying to pitch a lower rate. Not the case.
This will effectively add about 1% to your profit margins from revenue that has Nothing to do with your Current Rate or Processor.
If that has any impact on your business please read on, or give me a call at 888 790 3450 and I’ll show you the actual dollar figure were talking about here. I only need 10 minutes.
How we do it!
Believe it or not, 75%-90% of the fees you pay to accept credit cards goes back to the credit card issuer, not your processor. This is referred to as “interchange”. Interchange is the same regardless of the processor you choose. From the smallest bank to the largest processor. Interchange is the same.
Banks issue credit cards because they receive interchange (up to 90% of your fee) on transactions and purchases made with their issued cards.
Commercial and government cards qualify at 1 of 3 interchange levels. Level 1, Level 2 or Level 3, These interchange levels vary based on transactional data (line item detail) you include with the transaction.
Qualifying for Level 2 and Level 3 (interchange) rates:
Tax amount between 1%-22% and invoice number or customer code
= Lower interchange rates up to .50% on Visa Business Cards.
Information you generally find on an invoice that is passed with a credit card transaction i.e.: invoice number, tax amount, item description, quantity and unit of measure, freight amount, commodity & product codes.
=Lower interchange rates from .85%-1.5%
Only transactions including level 2 or level 3 detail are eligible for these reduced “interchange rates”. Accept any commercial, business, purchase, fleet, corporate or government card w/o and you lose up to 1.5% of potential (interchange) revenue that has nothing to do with your processor or your rate.
Revolution Payments can automatically update and reclassifying all your B2B, Commercial & Government related credit card transactions to level 2 and level 3 interchange rates without you lifting a finger. Even your tax exempt transactions will qualify at level 2 rates.
If your open, We’d love to provide you with a no obligation statement analysis. No obligation, just good information that will help empower your business. Upload a recent statement below or visit our website (level 3 processing page).
If your like most businesses you probably get calls from dozens of calls regarding merchant services and sick of hearing how everyone can lower your rates and save you money, and don’t blame you. This makes our job very hard.
Although we can most likely lower your rate rates, our ability to reclassify interchange can easily add 1% to your bottom line on your existing sales volume before we even discuss your rate.