How does Level 3 processing provide so much value to companies that accept credit cards from other businesses and government and in some cases adding up to 1.5% of new revenue to their profit margins they cant receive from a processor?
To understand the value in Level 3 processing remember why banks issue credit cards in the first place. Aside from the interest banks earn for their cards used in the marketplace, they earn 100% of the interchange fees businesses pay to accept credit card. Credit card processors earn no revenue whatsoever from interchange.
What the banks and credit card processing companies may not have told you is that for business-to-business and government purchases, the interchange fees fall into one of 3 processing categories — Level 1, Level 2, and Level 3 – with 1 being the highest rates and 3 being the lowest.
Each level is determined by additional transaction detail included with a transaction. Example, Level 3 or line item detail is information you would typically find on an invoice. PO#, descriptions etc. Level 1, means you either swipe or key the card, maybe enter a zip code with no additional transaction detail.
It’s regrettable that many businesses are unaware of the advantages that correct processing solutions can present.
Level 3 processing can lower a business’s discount rate by as much as 1.0% – 1.5% when compared to non-Level 3 processing, and depending upon the card type and the size of the transaction.
What Revolution Payments offers is a proprietary payment solution, and here’s how it works: For all credit card transactions … whether processed online or entered manually on your PC or mobile … our system identifies the cards accepted and automatically populates and attaches details to every transaction that update all your credit card orders to Level 3 interchange rates.
On average, businesses that work with us lower their rate on average by 1.0% to 1.5% on B2B, Commercial and Government transactions. With companies seeing as high as $3,000-$17,000 per month in savings (references upon request) thousands of dollars that stay out of the bank’s vaults and go directly to boosting your bottom line!
Questions about level 3 processor or our automated solution? Give us a call 888 790 3450 or email info@ revolution-payments.com