As a merchant, you’re always looking for ways to cut costs and increase profits. One area where you may be able to save money is in payment processing fees, especially if you accept a lot of corporate or government cards. This is where Merchant Level III Credit Card Processing comes in.
By providing specific line item details at the time of a purchasing card or government card transaction beyond what is required for consumer card transactions, you may qualify for Level III interchange rates. Visa and Mastercard have separate interchange categories for Level III transactions, so providing all of the required information can result in savings if you accept a lot of cards that are Level III eligible.
However, not all cards are Level III eligible, and not all gateways are capable of passing Level III data. This is why finding the right payment processor is critical. You need a processor that is knowledgeable about the initial setup of your Level III solution, as well as ongoing compliance requirements.
Compliance is a critical part of Level III processing because providing the required data can be a complex and constantly changing process. You need a payment processor who is familiar with the specific requirements for your business, and who can help you stay up to date on any changes that may affect your Level III compliance.
In addition to compliance issues, your payment processor should also be knowledgeable about any other factors that may affect your Level III processing costs. This includes understanding the different interchange rates for Level III transactions, as well as any other fees or charges that may apply.
Fortunately, there are several gateways that can help automate the process of sending Level III data, meaning you won’t need to manually enter the details when you process a transaction. This can help reduce human error and ensure that you’re actually providing the line item detail necessary to qualify for Level III rates.
By implementing Merchant Level III Credit Card Processing, you could save significant amounts on high-dollar B2B or B2G sales. The difference between Level II and Level III rates can mean savings of tens or hundreds of dollars per transaction, adding up to immediate and significant savings.
So if you’re looking to cut costs and increase profits, consider implementing Merchant Level III Credit Card Processing. Find the right payment processor who can help you set up your solution correctly, ensure ongoing compliance, and help you keep your processing costs as low as possible.
