If your business needs to accept Government Purchase Cards or needs the ability to process level 3 line item detail on these transactions Revolution Payment Systems can help.
If your currently selling to the Government or other Businesses and not set up to process level 3 line item detail You Are Leaving A lot of Money On The Table.
Visa and MasterCard have special incentive rates when level 3 data is provided. Large ticket transactions (over 10k) also have the ability to qualify for 70 basis points and less.
We often hear merchants say “We just had our rates reviewed”, “We have the lowest rates”, “No one can beat our rates, people have tried but can’t” The list goes on and on.
I often wish I could get these merchants to forget what they have heard from other sales people and keep an open mind for a few minutes to let me ask them a few questions.
Merchants have been so conditioned by sales people to focus only on rate and generally the only thing they are concerned with. Its a fact that most people selling to the Government or other businesses are not processing correctly, further more most sales professionals don’t truly understand the industry outside of the retail environment.
Our industry is much more complex than most of your realize or probably want to.
Here are a few facts for you.
1. Visa and MasterCard have over 150 pages of rates. These change each April and October and have different rules/rates based on how you process the transaction.
2. No matter your processor Interchange is the same. Interchange is the amount of the sale that goes back to the card issuing bank. No one processor or large organization has lower rates based on the size of the organization.
3. Some industries and SIC Codes have incentive interchange. Even though Interchange is the same, rate structure and working with an experienced payment professional is very important. Visa and MasterCard creative incentive rates for certain industries to encourage the use of credit card acceptance. Some require registration and correct rate structure. Example: Cable companies. Interchange for these merchants is only 1.43% + .05 regardless of whether the transaction is keyed or swiped.
4. Commercial cards and Purchasing cards have different rates based on the amount of information you send with the transaction. Level 1, Level 2, and Level 3. The difference between sending level 1 and level 3 data could save you 85 basis points on the same transaction. Revolution specializes in level 3 payments. View our blogs or www.level3merchantaccount.com to learn more.
So, when a merchant says “We just had our rates reviewed”, “We have the lowest rates”, “No one can beat our rates, people have tried but can’t”. My question to them is if you were overpaying by 20% or more how would you really know?
I would hope I can encourage you to not treat all sales professionals the same. Its often very good to get second opinions to ensure you not only have a low rate but are qualifying properly.
If your selling to businesses and the government this more important. Cost plus is the most effective pricing method in our industry. It creates transparency and allows you to see exactly what your paying, BUT if your selling B2B or B2G and not passing level 3 data, I could match your rate and save you 30-40% on interchange.
Level 3 lowers interchange itself. It doesn’t matter how low your rate is, the ONLY way to receive level 3 interchange is to pass level 3 Data;
Thats it folks. If your not passing level 3 data and a sales professionals calls and wants to talks to you about implementing level 3 and showing you potential savings from it, its well worth your time to take a few minutes out of your day to listen.
You may learn something new. This is your business and your hard earned money were talking about. Take more provide and time when choosing a merchant service provide and Do Your Homework.
You don’t need to become an expert but learning a little about your rates and fees that are impacting your bottom line will help you make more informed choices about who is in control of your funds.
Questions? You can reach us at [email protected] or 888 790 3450