Level 3 credit card processing is an often overlooked way to save money, and you don’t need to be an industry veteran to take advantage of it.
You might be wondering: what exactly is Level 3 credit card processing, and is it as complex as it sounds?
Let’s break it down.
Level 3 credit card processing allows B2B and B2G businesses to significantly reduce the interchange fees for accepting commercial, purchase and government cards by providing more detailed transaction information to credit card companies like Visa and MasterCard compared to Level 1 or Level 2 transactions.
However, providing extra data isn’t the only requirement for qualifying for Level 3 processing.
You’ll also need a payment gateway that supports Level 3 line item detail.
The higher the data level, the lower the cost of processing transactions for merchants.
So, how much can you save?
You can lower your interchange fees by up to 1.5% on commercial credit card transactions. However, the exact savings depend on several factors, including the type of card, size of the transaction, industry, the data processing level you qualify for, and the technology used to facilitate transactions.
For businesses wanting to reduce processing fees, this is a must. This allows you to capture interchange revenue you cannot receive from your processor lowering their rate. Remember, 80% of your fees (interchange) are non related to you processors rate. Providing level 3 detail and being set up properly allows you to recoup a large chunk of these interchange fees.
Still unsure if your transactions qualify for Level 3 processing rates or want to learn more ways to save on payment processing? Start to save money with level 3 credit card processing today!
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