To understand how Level-3 processing reduces your processing costs you first need an understanding of interchange.
The bulk of the fees you’re paying to accept credit cards goes directly to the bank that issued the credit card, not your processor.
Your processor and Visa & MasterCard receive not interchange revenue. This is how banks can offer zero percent interest/no annual fees. Even if the card holder pays the balance each month and or carries a zero balance,
The card issuing bank still makes the interchange portion 75%-80% of the interchange fees you’re paying.
Commercial cards are unique in that they have tiered interchange rates broken into 3 levels. Level 1, level 2 & level 3. Based on the additional information included with a transaction determines how the cards qualify.
Level 3 processing data is equivalent to information you would find on an invoice. When this information is included, the transaction qualifies at different interchange codes and can reduce interchange by as much as 1%-1.5%.
Level 3 reduces interchange by up to 40% before processor add their markup.
If your primary customers are other businesses or the government, it’s well worth your time to consult with a level 3 payment consultant. You could very well save thousands monthly or annually in processing fees.
We have a solution that makes it very easy for businesses to take advantage of Level 3 interchange rates. Unlike many other processors who service all types of merchants, our core focus
Is working wither companies selling to other businesses and government.
Questions about Level 3 Processing? Give us a call at 888 790 3450