We Help You Understand the Cost of Doing Business by Accepting Credit and Purchasing Cards

  • Have you been informed about qualified versus mid or non-qualified fees and how these fees affect your overall costs?
  • If you process B2B or B2G transactions, have you explored the savings advantages of utilizing Interchange Plus pricing for Level 3 opportunities?
  • Are you familiar with all the different credit card pricing options that are available to you, and which one is the most advantageous to your bottom line?

You want a merchant services provider who will ask the right questions, has options to meet your needs and who will look for ways to minimize your merchant processing expenses.

Level 1 transactions are your basic transactions, but doesn’t allow B2B companies to reap the rewards of lower interchange. Level 1 consists of the following: Credit card number and expiration, billing address, zip code. These basic swipe transactions are common for the retail environment.

Level 2 processing consists of Level 1 plus the following information: Invoice number / P.0. Code and sales tax amount.

Level 3 requires all of Level 1 and Level 2 information but goes beyond that to include: freight amount, duty amount, product/service ID, product/service description, quantity, item amount, unit of measure. With this additional information, merchants can receive payments quicker, reduce their invoice costs, as well as receiving preferential treatment by government agencies and larger corporations because of the additional data.

Only merchants who provide Level 3 data and are set up properly will receive Level 3 Interchange. If you sell primarily to: businesses and the government and you don’t process Level 3 data, you’re losing up to 40% of additional revenue, regardless of how low your current rate is. If your business is not set up specifically as a B2B accepter, you will not achieve Level 3.

MOTO or CNP (Card-not-present) transactions are typical in the B2B Corporate and B2G purchasing worlds. While you can use a standard swipe terminal with the Corporate Purchasing Card or Government Card – you will not reap the benefits of the lowest transaction rates that come with upgrading your merchant account to capture the enhanced data sets available at Level 3.

Level 3 processing classification allows specially issued Purchase Cards (p cards) to accept an enhanced set of data about the goods and services that are being purchased. Initially used by banks to federal, state and local government agencies, more and more large corporations are beginning to use this system to streamline the collection of payment from their customers.

By accepting Level 3 P-cards, merchants are rewarded with a lower processing rate. With current rates ranging from 2.89% -3.25%, Level 3 can decrease processing rates as much as 1%. This is accomplished by requiring more stringent and comprehensive data information gathering built into the merchant processing back end through the Level 3 merchant account.

“We are thrilled to provide tools to help our clients manage their interchange exchange rate easily and efficiently,” says Marnie Ochs-Raleigh. “Our help desk is trained to provide customer support for this product, but with it’s ease of use, once the client is properly trained it is so simple, it’s a web feature merchants can set up once and reap the reward with every financial transaction.”

A merchant account is a type of bank account that allows you to accept payments by payment cards, typically debit or credit cards or purchasing card (p-card). A merchant account is created under an agreement between you and a merchant acquiring bank (Visa, Mastercard, etc.) for the settlement of payment card transactions. In some cases a payment processor, independent sales organization (ISO), or merchant service provider (MSP) is also a party to the merchant agreement because you may not have the resources or volume to deal directly with the merchant acquiring bank. Whether a merchant enters into a merchant agreement directly with an acquiring bank or through an aggregator, a contract binds you, the merchant to obey the regulations established by the card associations. Aggregators also offer the benefits of PCI compliance, 24/7 customer support, latest technology and personal relationship.

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