In our digital world, more and more businesses and customers are wanting to pay for products and services with credit cards. If you work in a business-to-business or business-to-government environment, then it is important that you can accept credit card payments. Most of the time, the clients don’t want to pay for these transactions with cash or a check. Not only do you need merchant services to accept the credit card payments, but you need to look at options to ensure that you get the lowest interchange rate.

Level 2 Data Processing to Decrease Interchange Rates

The first step that you should consider is going to Level 2 data processing. With this method of accepting a payment, you enter in all of the same information that you would accept for a business-to-consumer sale. Plus, extra pieces of data are needed for the transaction, such as an invoice number and the tax amount on the transaction.

When you enter Level 2 data processing, on average, you can save about 50 basis points (or .05%) on every single credit card transaction. This amount might seem small, but it can add up over time, especially if you are accepting large credit card payments.

The Next Step: Level 3 Data Processing

If you choose to use Level 3 data processing, you will enter the same details that are required for levels 1 and 2. But, you also need to have additional information, such as commodities code, ship from/to details, or other pieces of data that might be requested for the transaction.

The advantage of entering the additional data is that you can get a lower interchange rate on large transactions. These options are designed to help with fee reduction for business-to-business or business-to-government transactions.

It can be challenging to understand the options that are available for merchant processing. You don’t need to navigate the industry by yourself! Call or email me if you have questions about the technical side of processing. I am here to help you find the right solutions to match the needs of your company. Contact me to learn more about the affordable merchant services that are available for your transactions.