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After paying merchant processing fees, how much of each credit card transaction do you actually get to keep? How much of a difference would it make to your business income if you could lower your merchant processing fees by as much as 1.50%?

At DataQuest we encourage using Level 3 processing for our Sage and Acumatica customers to help them increase profit margins.

Level 3 Credit Card Processing: A Brief Introduction

Level 3 processing is a premium service for B2B and B2G corporate cardholders with Visa and MasterCard. Level 3 processing is a preferred standard because it provides additional reporting on transactions. Level 3 differs from Level 1 and Level 2 processing because it collects more data from the merchant, including:

• Item description
• Shipping data
• Unit of measure
• Quantity
• Freight amount
• Commodity and product codes

This additional data provides better insight for corporate cardholders. Level 3 cardholders also have more control over how their business funds are spent; they can easily limit transaction amounts or purchasing frequency.

Glasses to inspect additional data

Providing the necessary Level 3 processing data can be quite easy for your company.

Level 3 Savings: The Details

Typical credit card processing fees for B2B transactions cost 2.65% or more, but Level 3 processing rates can be 0.50% – 1.50% lower (a savings of up to 43%). That means you could keep approximately $13.50 more for each $1,000 of Level 3 processing!
Depending on how many Level 3-eligible transactions you process, this could translate to a significant annual savings for your company.

Additionally, the more Level 3 processing you do, the more you’re likely to save.

The Level 3 Secret: Choose Your Vendor Carefully

When you’re ready to start taking advantage of reduced rates, you have to make a choice between two options. Both get you the Level 3 benefits and savings you deserve.

You can either:

1. Run transactions the way you always have (while taking advantage of increased Level 3 savings and benefits)
OR
2. Pay for expensive, specialized hardware for Level 3 processing, then manually transfer required data from your ERP in painstaking detail.

We’re making an assumption here- but to take advantage of Option 1, it’s critical to choose the right merchant services provider.

We recommend American Payment Solutions for these Level 3 transactions because they offer our customers:

• 12-hour funding for all card brands
• Significant savings on processing fees (as much as 1.50%)
• Seamless ERP integration (including to Sage 300 ERP and Acumatica)
• A strong ROI (one client saved $112,000 in a single year)

If you’re interested, we can help coordinate the transition. If American Payment Solutions cannot match or beat a competitor’s rate, they’ll give you $500- so it’s an easy option. Talk to us!

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