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Maximize Your B2B Interchange Savings
Monday, August 26, 2019

You have probably been told, or witnessed firsthand, that business credit cards are expensive to process. What you haven’t been told is that there are steps you can take to get a lower price. By providing what is often referred to as Level II and Level III data, you can receive a significant interchange savings over a typical consumer transaction.

The Levels

Level I: Your standard customer purchases. This level of processing refers to business-to-consumer (B2C) transactions, during which consumers use their personal credit cards. The data required to process a Level I transaction is small, but the interchange rates are higher.

Level II: Your standard business purchases. This is the level you should focus on receiving your savings. Level II credit card processing refers to a more detailed transaction designed to support business-to-business (B2B) payment processing. Commercial accounts often require the ability to monitor and control credit card spending, and Level II processing simplifies these transactions.

Level II transactions can qualify for lower interchange rates. Because Visa/MasterCard recognize that if you, as a business, are providing all this extra information, the sale is more likely to be legitimate. As such, they are willing to provide a lower cost for the sale.

Level III: Your exclusive business purchases. This B2B processing takes everything one step further. Most merchants will never have the opportunity to accept Level 3 cards, but if you’re processing a B2B-heavy industry or accept a lot of Government cards, having Level 3 data acceptance may help reduce your interchange costs even further.

How You Save

If you regularly process B2B transactions, utilizing Level II data will help you achieve savings on interchange rates, typically around 0.50% lower. To accept these transactions, you will either need to have a standalone terminal or processing gateway that allows you to input the extra fields. OMEGA VT, our virtual terminal, can be set up to do this. In addition to information collected in a Level 1 transaction, you will also need to input tax amount, Merchant State and Postal Code, Tax ID information and Merchant Category or SIC code. This can result in a significant annual savings for just a little extra effort — time is money in this case!

Contact OMEGA Processing at 866.888.9724 ext. 7 or visit www.omegap.com  to learn more about how Level II processing can help your business. 



 
 

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    • 08/26/2019 - Maximize Your B2B Interchange
    • 10/13/2017 - Saving on B2B Interchange
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