B2B credit card processing fees aren’t what most businesses think. Companies assume the processor’s rate is the primary driver of fees — but that’s only a small part of the total cost. In fact, interchange fees, which are set by Visa and Mastercard, make up 80–90% of your total B2B credit card processing fees if set up properly. And if your setup isn’t optimized, the cost can be even higher.
Why Interchange Gets Overlooked — and Why It Matters
There are over 1,000 different interchange rates and rules, and Visa and Mastercard update them twice a year — every April and October.
Despite this, interchange is almost never reviewed for accuracy when companies evaluate their processing costs. The focus tends to fall on the processor’s rate because it’s the only part that feels negotiable.
Even more surprising, Visa and Mastercard introduced special interchange rates for commercial and B2B transactions over 20 years ago — but 3 out of 5 businesses still aren’t configured to qualify for them.
When your interchange setup isn’t right, every commercial transaction you accept can clear at a higher-cost category — quietly draining thousands, sometimes millions, per year in unnecessary fees.
5 Trends Quietly Costing B2B Companies Thousands in Processing Fees.
1. Interchange Fees Are Not Set by Your Processor
In B2B and commercial payments, only 10–20% of fees are related to the processor’s rate. The other 80–90% depends entirely on how the transaction is submitted — not who the processor is.
2. 3 Out of 5 Businesses Are Not Set Up Properly
Most businesses miss key configurations required to qualify for lower interchange rates on commercial card transactions.
3. Commercial Cards Can Clear at One of Four Interchange Categories
These categories can vary by as much as 1.5% in cost — before the processor’s fee is even added. Where your transactions clear is critical to controlling costs.
4. Processors Are Not Required to Optimize Interchange
There’s no rule requiring processors to ensure businesses qualify for the lowest interchange rates. Most don’t — not out of malice, but because interchange optimization is highly specialized, and most processors don’t fully understand it.
Even those with good intentions often don’t realize that missing a few key configurations, data points, or the correct rate structure can quietly cost businesses tens or even hundreds of thousands per year.
5. “Level 3 Capable” Does Not Mean Level 3 Optimized
Just having a gateway or system that supports Level 3 processing doesn’t mean you’re getting Level 3 rates.
It requires:
- The correct rate structure
- Proper data mapping
- Consistent submission of required fields like invoice numbers, tax IDs, and line-item details
Skipping even one required data field can cause a transaction to downgrade to a higher-cost interchange category.
The Bottom Line: It’s Not About Processor Rates — It’s About Interchange
Most B2B businesses are overpaying because interchange isn’t tied to the rate you negotiate with your processor. It’s buried in how your transactions are configured — something most processors don’t touch, don’t manage, and often don’t even understand.
This doesn’t just affect processing costs — it directly impacts:
- Margin
- Cash flow
- EBITDA
- Enterprise value, especially at exit or during diligence
Want a Second Set of Eyes on Your B2B Credit Card Processing Fees?
At Revolution Payments, we specialize in helping B2B companies, government contractors, and commercial businesses reduce interchange fees by up to 40% — without changing how they run their business.
If you’re curious whether your company is configured correctly — or how much hidden margin is being left on the table — we’re happy to take a look.
Schedule a confidential review today.
Visit www.revolution-payments.com or call 888-790-3450.