Merchants who sell to other businesses or the government should understand the basics of Level 3 Processing.
If you’re not familiar with Level 3 Processing there is a good chance you’re losing a minimum of 1%-2% on many of your Business-to-Business and Business-to-Government Transactions, and something one of our payment professionals at Revolution Payment Systems can easily prove to you.
The True Cost for accepting credit card payments is the same regardless of your credit card processor. This is called interchange and why banks issue credit cards. Interchange is the amount of each sale that goes back to the card issuing bank.
Business, Purchasing, Corporate and Government transactions are unique because they have different rates based on the additional information being sent along to the credit card processor. I’m not referring to the zip code or the 3 digit code on the back.
I will use MasterCard Corporate Cards as an example.
2.65% MasterCard Corporate Card
2.15% MasterCard Corporate Card where Level II information is added
1.80% MasterCard Corporate Card where Level III information is added
You can easily save 85 basis points on the same exact transaction by making sure your account and terminal/gateway is set up properly. Please NOTE. I am not referring to the markup your processor has added to your rate, this is a different story and a way to put some money back in your pocket.
I am referring to Interchange alone, The amount of your transaction that goes back to the credit card issuing bank.
The ONLY way to receive this incentivized rates is if you’re sending level II and or III Data with your credit card transactions. Just because you may be set up to send level III data does not automatically mean you’re seeing the 20-30% savings you should be. A cost plus merchant account and proper level 3 payment technology is also required.
Having more knowledge about what determines your overall rates and fees will help you make better decisions when choosing a level 3 merchant service provider
If you sell to other businesses and or the government and curious to see the amount of lost revenues revolution can help you capture call or email for your complimentary and no obligation review.
[email protected] revolution-payments.com 888-790-3450
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