Reduce B2B Credit Card Acceptance Costs

Commercial credit cards help corporations generate more perspicacity into purchasing payment transactions with the prerequisite of greater payment details, and help companies manage their assets and vendors more productively due to the detailed reporting on purchases.

Costs of Card Usage

Businesses that accept credit cards typically carry most of the costs associated with commercial card payments. Card issuers make billions annually on interchange rates. A large percentage of the interchange revenue results from corporations using commercial cards, and there are financial advantages for businesses that utilize them.   

Today, lots of businesses accept commercial card payments to remain competitive. Many companies understand the importance of paying a small percentage to satisfy their clients. 

The reasons why businesses choose to accept commercial cards is important, but what is more relevant is how these businesses can reduce the exorbitant amount of fees incurred from processing these types of credit cards.

Businesses have successfully reduced their cost by qualifying corporate and commercial card transactions for Level III Interchange. However, manually adding the necessary Level 3 details to each credit card order you accept can be time-consuming. 

Interchange Pros take all the guessing out of qualifying for Level 3 processing by automatically adding Level 3 transaction details for your business. We can help you save on your card acceptance costs by handling all of the small details. There are over 400 different interchange rates, and we can help your business optimize its commercial card acceptance process. 

Reducing Credit Card Processing Fees

Interchange experts have outlined two strategies you can use to reduce your credit card processing fees. Your business could negotiate its interchange pass-through pricing with your processor, or you could optimize your business interchange rate by submitting Level 2 and Level 3 “enhanced” data for commercial cards. 

Negotiating pass-through pricing centers around making deals with card acquirers and following the industry-standard prices. Optimizing your interchange process may prove more impactful because it’s dependent upon the card acceptance capabilities at the point of sale. 

If your card acceptance system can submit additional enhanced data in the settlement file provided to the processor/acquirer, then you’ll be eligible for better rates. With B2B purchases, card acceptors can provide three levels of payment data. The more details submitted, the more it can help to reduce card acceptance costs. 

Level 1, 2 and 3 Data Submissions

Level 1 data is submitted with all card transactions and usually refers to consumer transactions. B2B commercial card transactions qualify for Level 2 and Level 3 data submission. Commercial cards like purchasing, fleet, or corporate cards are eligible for Level 3 data submission.  

Level 1 transactions submit the least amount of data, and level 3 transactions pass the most data.  The Level 2 & 3 data provided by card acceptors is shared with the purchasing entity using the commercial card. This data can help the card holder (buyer) optimize their spending and maintain effective relationships with vendors. 

Card issuers also benefit from offering interchange rebates to market their commercial cards to corporations. These discounts increase more Level 2/3 data submission which drives more spending data back to card users.  

Everyone can benefit from providing more data, especially when incentivized with savings. Businesses using and/or accepting a significant volume of commercial cards can directly benefit from using more data to reduce their B2B costs.  

B2B Credit Card Acceptance Costs

The costs of doing B2B transactions for those accepting corporate, purchasing, and business cards are high because these cards have the highest “interchange” rates. Interchange Pros offers a proprietary payment solution by automatically attaching details to every eligible transaction and updating all of these credit card transactions to the appropriate interchange rates.

Accepting a B2B or Government transaction without level 3 details will cost you, and that’s before a processor adds their fee. We want to help our clients get the lowest rate possible by adding the additional Level 3 data to the transaction so they can see significant savings. 

How can Interchange Pros help businesses reduce B2B credit card acceptance costs?

Our team has developed a secure payment processing program that is easy to integrate into your current accounting system and provides solutions for business to business or business to government payments and the expenses that come along with these transactions. 

Our staff will also work with you to help you keep identifying cost-saving opportunities and to expand your acceptance methods. You will see major discounts on fees from major credit card brands. Call us now for your consultation.

Interchange Pros simplifies the process of including Level 3 line-item detail.  Our proprietary system automatically transmits additional cardholder information to present a qualified status to issuing banks. We will add the required data to each credit card transaction for you, so your business benefits from lower fees while enjoying smoother transaction entries.