Level 3 processing is a Must if you sell to the Government or Businesses

If your company sells to the Government Or Businesses do not overlook the savings level 3 processing WILL provide your organization.

There are 3 comments to the rates you pay to accept credit cards.  Only one of these is negotiable.

1. Interchange: Interchange amounts up to 80% of the fees you pay.  This is the amount of the sale that goes back to the credit card issuing bank of your customer.

2. Assessment fees: Visa, MasterCard or Discover receive assessments each time it accepts a credit card branded with the Visa or MasterCard Logo

3. Your processors Markup:  This is the only fee that is negotiable.

Most merchants know the benefits of having a cost plus pricing structure.  Your processor passes all interchange/assessments through at cost and adds a small markup.

This is why level 3 processing is key if your processing commercial and government transactions. Visa and MasterCard apply higher interchange rates to commercial, business, purchasing and government cards when level 3 data is not provided.

Level 3 processing lowers the amount of interchange that goes back to the credit card issuing bank.  If your accepting B2B and B2G transactions and not passing level 3 data your leaving a huge chunk of revenue on the table.

There are requirements to process level 3 line item data. Correct rate structure and payment technology capable of sending level 3 data is a must.

Its also encouraged you consult with an experienced level 3 payment professional to make sure your getting 100% of the incentives for passing level 3 data.

If you have questions regarding level 3 processing give us a call at 888 790 3450 or email [email protected]


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