Drive lower costs through the power of data! Nowadays businesses use data in all types of ways to their benefit. Why not have one of these ways be to save costs on their credit card processing?
With so much else going on, businesses can rarely find time to monitor their interchange rates. Many merchants might not be aware that commercial credit cards have their own unique interchange rate with varying levels of data requirements. The baseline is Level 1 which only requires three customer data points and results in the highest interchange rate. The endpoint is Level 3 which requires the most customer card data and gives the best interchange rate, with Level 2 in-between. The type of credit card and the data collected at the point of sale will dictate whether a transaction can achieve the lower cost Level 2 and 3 rates. All commercial card transactions are eligible for Level 1 interchange rates which average around 2.5%. The Level 2 average rate is around 2.1% and the average Level 3 rate is around 1.5%. This means 40-50 bps in savings for Level 2 and 80-100 bps in savings at Level 3! It is estimated that around 50% of commercial credit card transactions are currently processed at the highest interchange rates. So how can businesses make sure that their customers transactions are qualifying at the appropriate, and lowest, interchange rate?
This is where the commercial card optimization software comes in to the equation. Premier Payments Online back-end software will automatically populate the necessary data to qualify commercial credit card transactions for the lowest processing rates. With commercial card optimization, businesses can achieve the lowest rates on 100% of their commercial card transactions with no up-front costs and no change to their payment acceptance set-up. It really is as easy as signing one piece of paper and your business is setup to start saving!
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