Level 3 data processing

I’d like to share a few ideas that can help you lower your cost of accepting B2B and B2G transactions by up to 40% regardless of the rate your processor charges you.  Submitting level 3 data processing when you process these transactions and save BIG, if you are set up properly.

Accept B2B and B2G transactions without including level 3 payment data, you pay 80-150 more on interchange fees, regardless of your processors rate.

People often ask us how we can save a business a few thousand dollars per month and up to over 57k per month, without changing their processors rate. The secret is level 3 data processing.

So many businesses have been conditioned to only look at a processors rate when evaluating their fees.   Don’t get me wrong, having a low processors rate is important however, roughly 80% of the fees a business pays to accept credit cards has ZERO to do with the rate they negotiate with their processor.

100% of the interchange rates goes back to your customers card issuing bank. To make this even more complicated, when it comes to commercial, B2B and government credit cards interchange rates fall into 1 of 4 different categories that can cost you 1.9% more before a processor ads their fee.

Commercial card interchange varies depending on the card type and transaction size.

  • If you process Visa transactions of 7,755.56 or higher
  • MasterCard $10,000 or higher
  • Government cards $5,557.14 or higher you can pay less than 1.5% for these transactions.

If level 3 processing data is provided with these larger transactions they will qualify for Commercial Product Large Ticket Interchange rates.

Interchange is the same regardless of the processor you choose however, having an understand of rates and the fees that impact your bottom line can help you make more informed decisions when evaluating your processing needs.

To qualify for level 3 processing data you need to use a payment device or method that supports the ability to capture this additional detail.  To receive 100% of these lower interchange incentives you need a cost plus rate structure from your processor.

You should insist on this pricing structure whether you process level 3 payments or not.  It ensures your transactions clear at the lowest interchange rates.

Look for a B2B payments expert who has experience setting up level 3 processing accounts. We come across a lot of merchants who are submitting level 3 detail but have the wrong rate structure resulting in higher fees.

If you have questions about Level 3 data processing, our automated level 3 solution that does all the heavy lifting for you, or would like to see how much your company could be saving each month, give us a call at 888 790 3450 or email info@ revolution-payments.com

Revolution Payments has been helping merchants qualify for level 3 interchange rates for over 20 years!



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