Let's delve into the world of credit card processing, specifically focusing on Interchange Level II and Level III. For merchants looking to reduce processing costs, understanding these levels can lead to significant savings.
Interchange Level II
Interchange Level II is an enhanced data requirement for business-to-business (B2B) and business-to-government (B2G) transactions. By providing additional information like customer codes or tax amounts, merchants can qualify for reduced interchange rates. This level was designed to encourage more detailed reporting and reduce fraud.
Interchange Level III
Taking it a step further, Interchange Level III involves providing even more detailed transaction data. This can include line-item details of the purchase, such as item descriptions, quantities, and more. This level is especially prevalent in large corporate and government transactions. The rationale? The more information a merchant provides about a transaction, the lower the risk for the card networks, leading to potentially lower processing fees.
Why It Matters
You might wonder, "Why bother with these additional details?" The answer is simple: Savings! By providing more transaction data, merchants can qualify for lower interchange rates, which can translate to significant cost reductions. Especially for merchants with high volumes of B2B or B2G transactions, the savings can be substantial.
For merchants, it's essential to work with a payment processor like Simple Clear Payments that supports Level II and III processing and can guide you through the necessary steps. It's a proactive measure that not only reduces costs but also builds a trustworthy reputation with your transaction partners.
Here's the best part: The Simple Clear Payments team are Interchange experts. Our system uses patented software to extract the necessary transaction data automatically. So for approved businesses, there is no "extra" work to be done when entering new transactions. Businesses enter the same credit card information as usual, and our Simple Clear Virtual Terminal takes care of the rest.
Significantly lower rates with no extra effort! It may sound too good to be true, but it's not. Contact us and we'll be happy to discuss if you're business qualifies for Level II/Level III Interchange rates. By understanding and leveraging Interchange Level II and III, most B2B businesses stand to benefit in a big way. A 15 minute conversation could result in a HUGE fee reduction each month.
