Why Level 3 Processing should be a must if accepting B2G and B2B payments.
The bulk of the fees businesses pay to accept credit cards goes back to the card issuing banks, NOT credit card processors.When you accept a credit card from a business or government w/o level 3 payment detail, it qualifies at different interchange codes and cost anywhere from .80%-1.5% before processors add their markup.
The Examples below are basic guides that show the cost of accepting a B2B or B2G credit card with vs w/o level 3 payment detail.
• Example #1, Visa Interchange Exercise:
Cost for a $5000 Visa transaction without Level 3 Data: $139 or 2.78%
Cost for a $5000 Visa transaction with Level 3 Data: $99 or 1.98%
Cost for a $3000 Visa transaction without Level 3 Data: $99 or 3.30%
Cost for a $3000 Visa transaction with Level 3 Data: $75 or 2.50%
• Example #2, MasterCard Interchange Exercise:
Cost for a $5000 MasterCard transaction without Level 3 Data: $147.50, or 2.95%
Cost for a $5000 MasterCard transaction with Level 3 Data: $102.50, or 2.05%
Cost for a $3000 MasterCard transaction without Level 3 Data: $88.60, or 2.95%
Cost for a $3000 MasterCard transaction with Level 3 Data: 77.58%, or 2.58%
Visa & MasterCard created special rates to support Purchase Card programs
reducing the merchant transaction costs (Interchange) if Level-3 line item detail information is
included with the credit card transaction.
By providing Level-3 data, a business may reduce their credit
card processing fees – often by 30% to 40%.
Questions about Why Level 3 Processing is a must for all B2B and B2g merchants, or would like to receive a no obligation level 3 processing rate quote? Give us a call at 888 790 3450
or email [email protected]
Revolution Payments is Your Advocate and Level 3 Payment Processor for Government Contractors- Suppliers and businesses who accept B2B or B2G credit cards.