Businesses that accept card payments often celebrate them for their convenience and the boost in business it brings, but those benefits come at a cost - card providers charge interchange fees on every payment processed from their cards. While insignificant on any one purchase, these rates can end up eating into business's bottom lines on a larger scale, causing some to steer their clients away from paying with plastic. Luckily for B2B wholesalers, however, there is a way to significantly reduce interchange rates without abandoning card payments.
Level 3 interchange rates are awarded to merchants who pass certain line item detail on to card companies when submitting qualifying sales for settlement. Commercial card payments may qualify for Level 3, making B2B wholesalers the ideal merchant to take advantage of these low rates. To qualify, companies should follow these three simple steps:
- Request an interchange pricing structure: Requesting a direct interchange pass through pricing structure requires card processors to show you the precise rates they charge you for each transaction. This level of transparency will help inform you as you make sure you qualify for the lowest possible rates.
- Use Level 3 payment technology: Qualifying for Level 3 interchange rates is not as simple as sending along a string of text with every payment. You need payment processing software that can collect specific details - such as product code, item description, item quantity, unit of measure and extended item amounts - then send that data along to card companies compliant with their regulations. By working with a virtual payment processor, you can ensure payments are always made with the providers' up-to-date regulations in mind.
For more information on how to reduce your business's processing fees, or discover business solution providers that support Level 3 processing, contact Vantage today.