POSitive Processing Blog
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
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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