Contents tagged with Commercial Cards

  • 80 percent of businesses use ACH, commercial cards for B2B purchases

    April 04, 2016
    Wholesalers properly equipped to accept commercial cards can take advantage of their low interchange rates.

    Despite their high cost and inefficiency, its no secret businesses have been slow to move away from paper checks when paying for procurements. However, new research suggests that more companies than ever now use electronic payment methods for at least some of their purchases.

    As many as 83 percent of respondents to AP Now's 2016 Payment Survey say their organization uses ACH to make some of its payments, while another 79 percent have issued corporate cards to their employees for purchasing certain goods and services.

    While it is exciting to see so many companies taking advantage of the cost savings and convenience of electronic payments, far fewer use these options regularly. More than half say they still cut checks for 75 percent of their B2B transactions, a figure that disappointed … more

  • Debunking 2 misconceptions about the costs of payment cards

    February 25, 2015
    Contrary to misconceptions, payment card transactions do not incur heavier costs or infrastructure investments for merchants.

    Although many B2B payers prefer making transactions with their credit or debit cards of choice, paper checks still comprise a huge subsection of the B2B payments space. But why? While they may be more "traditional" and ingrained in the minds of some, and are backed by many big banks, a recent piece on PYMNTS.com highlights the biggest obstacle to more widespread commercial card payments: misconceptions about cost and availability. Many merchants assume that charging B2B transactions to payment cards will incur more costs than checks would, or that suppliers are less likely to accept card payments than checks.

    Here are two major misconceptions surrounding B2B payments made with commercial cards, and the truths behind them:

    More effort on the accounts payable side: Although … more

  • Supplier education to be a key focus on the payments space in 2015

    January 04, 2015
    Education is key to better payment processing.

    To qualify for the lowest possible interchange rate, merchants must ensure they are processing Level 3 data with line item detail. This requires the right tools integrated with their payments platform and, in many cases, their B2B eCommerce solution, but merchants must also follow best practices along the way to ensure they are doing what's necessary to keep costs to a minimum.

    Ultimately, a more educated merchant is a better off merchant, because they know how to keep costs to a minimum. If you implement a B2B eCommerce solution, you must understand how best to manage it and what will ultimately come with processing payments made in this environment. You cannot use a B2C payment gateway, because that will not allow you to submit Level 3 data. So, procuring any eCommerce solution and … more

  • Businesses more inclined to use purchasing cards

    June 20, 2014
    More businesses are inclined to use purchasing cards.

    While the emergence of B2B eCommerce solutions has increased the usage of purchasing cards, merchants must be cognizant of a number of other factors influencing the growth in purchasing card usage. Ultimately, several emerging factors are prompting more businesses to utilize purchasing cards, which places a greater importance on the need for Level 3 processing.

    According to a recent article from Trade Financing Matters, businesses are receiving rebates for a high volume of purchasing card usage, which means they are more likely to use this method to make payments, particularly in an eCommerce setting. 

    "Businesses of all sizes and across numerous industries all want to be profitable, and a huge part of that process is by the companies making smart purchasing decisions. This is … more

  • The advantages of Level 3 software as a service

    March 28, 2014
    A virtual solution could be a better option than a local system.

    Standard credit card terminals are not capable of processing the complex Level 3 data required for merchants to qualify for the lowest possible interchange rate on B2B transactions. That's why investing in a solution to facilitate this level of data processing is a smart financial decision. But how should you implement this solution into your payment processing infrastructure?

    Many businesses still prefer the traditional software installation approach, although it is not the most ideal choice.  This process involves installing the software on a PC so it exists on that computer and allows merchants to process payments from that machine. This can be risky.

    First, installing software directly on a particular machine means that payment data will be processed on that machine. The PC … more

  • Staying competitive in the government marketplace

    March 17, 2014
    It's no secret that selling to government agencies can be an incredibly lucrative business. Despite the pessimistic headlines pertaining to an uncertain economic landscape, if your organization can land on the preferred list of government vendors, you have the opportunity to make a significant amount of money. 

    If you're unfamiliar with the GSA Schedule, understand that as a merchant, it's somewhere you want to be. An article in the online publication Washington Technology describes it best.

    "We all know the GSA schedule," wrote Mark Amtower, the article's author. "It is one of the most visible barometers of success in the government market, a kind of "who's who" when it comes to identifying top B2G companies."

    Amtower's work deals heavily with the government sales market, and he … more

  • The financial consequences of implementing the wrong payment solution

    September 11, 2013
    Obtaining the right payment platform can be a challenge because there are a myriad of options to choose from.  Failure to understand the key factors that determine your payment acceptance fees can be costly, and buying a system simply because it's inexpensive or well known could be a big mistake. A platform without the right features and functionalities can wind up costing an organization more money over the long term, so it's important to understand what to look for before procuring a new solution.

    Suppose you are a merchant selling to other businesses and you're accepting purchasing cards or commercial rate business and corporate cards. Or maybe you sell to the government and accept GSA cards.  You will be at a disadvantage if you misappropriate a B2C payment gateway or … more

  • Save on payment processing fees by understanding Visa and MasterCard's tax similarity

    August 20, 2013
    Despite their differences, Visa and MasterCard have many similarities pertaining to payment processing. Submitting tax data is an important issue. As this blog has mentioned in the past, companies that sell to businesses with tax exempt certificates or to government agencies will need to submit a zero value tax amount because these customers won't be paying sales tax. Because many companies use tax exempt certificates, this is likely to come up often for vendors that conduct B2G and B2B sales.

    MasterCard and Visa have very clear specifications when it comes to submitting tax information. To qualify for Visa Level 3 or MasterCard Data Rate 3, the tax value has to be greater than or equal to zero. So, businesses can still qualify for these rates if the tax value is at $0, provided that … more

  • The differences between Visa and MasterCard Level 3 processing

    August 13, 2013
    This blog has spent a substantial amount of time discussing the advantages of processing Level 3 data in order to qualify for the lowest possible interchange rate. While it's true that understanding the need to submit line item detail is crucial, there are other factors that come into play and may affect the way a vendor processes information. One of the more important things to understand is the way the major credit card companies define Level 3 data.

    Perhaps the best place to start is the difference in terminology. While Visa refers to Level 3 data, MasterCard calls it Data Rate 3. They are both essentially the same thing, and it's important to understand that to prevent confusion during the processing of B2B payments. Understanding the terms can help vendors recognize which card is … more

  • Study shows value of accepting card payments

    July 08, 2013
    At one point or another, every company comes to the realization that they have to evolve their policies and operations in order to survive in an increasingly innovative society. The end result can vary depending on where each organization was respectively before making this decision. For example, while some forward-thinking vendors are probably spending 2013 evaluating potential solutions to fit their mCommerce needs, others are finally making the leap from a check and cash exclusive operation to credit card acceptance. 

    Making this transition—particularly to those who held out for so long and are only now considering adding credit cards as one of their accepted forms of payment—can be intimidating. However, the change is necessary, even if "the old way of doing … more