If your company sells to the Government Or Businesses do not overlook the savings level 3 processing WILL provide your organization.
There are 3 comments to the rates you pay to accept credit cards. Only one of these is negotiable.
1. Interchange: Interchange amounts up to 80% of the fees you pay. This is the amount of the sale that goes back to the credit card issuing bank of your customer.
2. Assessment fees: Visa, MasterCard or Discover receive assessments each time it accepts a credit card branded with the Visa or MasterCard Logo
3. Your processors Markup: This is the only fee that is negotiable.
Most merchants know the benefits of having a cost plus pricing structure. Your processor passes all interchange/assessments through at cost and adds a small markup.
This is why level 3 processing is key if your processing commercial and government transactions. Visa and MasterCard apply higher interchange rates to commercial, business, purchasing and government cards when level 3 data is not provided.
Level 3 processing lowers the amount of interchange that goes back to the credit card issuing bank. If your accepting B2B and B2G transactions and not passing level 3 data your leaving a huge chunk of revenue on the table.
There are requirements to process level 3 line item data. Correct rate structure and payment technology capable of sending level 3 data is a must.
Its also encouraged you consult with an experienced level 3 payment professional to make sure your getting 100% of the incentives for passing level 3 data.
If you have questions regarding level 3 processing give us a call at 888 790 3450 or email [email protected]