B2B Merchant Processing

Striving to Maximize Merchant Savings

Level 3 Data specializes in B2B processing qualifying our merchants for the best interchange rates possible. Our merchant processing suite provides robust, intuitive solutions capturing the right data with minimum effort saving our clients thousands of dollars in merchant processing fees

B2B-Invoice

The Level 3 Data Approach

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B2B/Enhanced Data Defined

How B2B Relates to Interchange

Interchange Rates comprise of hundreds of different merchant processing fees charged by the issuing banks. Each transaction a merchant runs is assigned a fee based on the risk and authorization/card type. More data provided at the time of sale means a lower risk to the issuing bank and a lower fee to the merchant.

interchange rate (noun)
in·​ter·​change rāt
1. a fee paid between banks for the acceptance of card-based transactions that covers the cost of handling and credit risk inherent in a bank credit or debit card transaction.

Commercial Cards that Fall Under a B2B Transaction

The amount of interchange rates a merchant pays the four major card brands depends on the card used at the time of transaction. In order for a transaction to qualify for B2B/Enhanced Data rates, the card used must be one of the following cards:

Business Card

Cards issued by a company to the employee where the card holder is liable for the money.

Corporate Card

Cards issued by a company to the employee where the business is liable for the money.

Purchasing Card

Cards used for purchase orders to buy company approved goods for the business.

credit-card-transaction-workflow

Transaction Routing

A credit card hits multiple channels when an authorization takes place. Between the gateway/hardware used, the card brands (Visa, Mastercard, Discover, American Express), and to the card issuing bank, all platforms must work in sync to ensure the proper transfer of funds as shown by the diagram to the left.

Qualifying: Level 2 and 3 Data

Every credit card transaction qualifies for a different "data level". The data level is determined by the amount of information provided by the business at the time of the authorization. A transaction passed with the least amount data (information stored on the card's chip) qualifies for Level 1 Data.

In order to qualify for Level 2 or 3 Data and save money on interchange rates, more information is given at the time of the transaction. Level 2 and 3 transactions offer less of a risk/chargebacks to the card brands therefore a greater savings for the merchant

Requirements and Eligibility

The vast majority of merchants are running corporate cards at level 1 data rates. Why? Many merchant processors are unclear on the benefits and do not provide a solution to capture Level 2 and 3 Data.

The table to the right offers an explanation of what information is needed in order for a merchant to save money. As one can imagine, gathering this type of information can be cumbersome for the merchant AND for the customer.

The benefit of using Level 3 Data for merchant processing is that commercial card transactions can qualify for Level 2 and 3 rates by simply collecting two pieces of information: THIS AND THAT.

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Level3DataBenefit

Level 3 Data
Offers Level 3 Rates
with Auto-fill Enhancements

Sending Level 2 and 3 Data

To qualify for the lowest interchange rate, it is important to send complete data to the card brands. This information is then passed through the processor to the card brands and stored to mitigate the risk of chargebacks.

While the data needed to be collected can seem daunting, it is important to remember that Level 3 Data's MX Suite Gateway and/or the compatible devices offers a streamlined process for receiving level 3 rates. Using auto-fill enhancements, merchants are able to save money by sharing only two pieces of information.

Sample B2B/Data Enhanced Rates

Interchange rates change regularly, however, savings for enhanced data usually remains the same.

As you can see below, a Purchasing Card Level 3 Rate is currently set at 1.90% and $0.10 per transaction. That is a vast difference when compared to the standard rate at 2.95% and $0.10 per transaction.

To put these figures in terms of savings, say a transaction for $500 is ran on a Standard Tier Rate. The merchant would pay $14.85 on interchange alone. If this transaction cleared at Level 3 Rate, the price for interchange drops to $9.60, a savings of $5.25. If a merchant were to run 20 similar transactions a month, that is a savings of $105 per month.

 

$500 Transaction on Purchasing Card

Standard Tier Pricing: $14.85 (500 x 0.0295 + 0.1)
Level 2 Pricing: $10.60 (500 x 0.021 + 0.1)
Level 3 Pricing: $9.60 (500 x 0.019 + 0.1)

Mastercard Interchange Rates

Card Type


Business Debit
Corporate
Purchasing

Standard Rate


2.95% + $0.10
2.95% + $0.10
2.95% + $0.10

Level 2 Rate


2.20% + $0.10
2.10% + $0.10
2.10% + $0.10

Level 3 Rate


1.80% + $0.10
1.90% + $0.10
1.90% + $0.10

MC Interchange Rates

Visa Interchange Rates

Card Type


Business Debit
Corporate
Purchasing

Standard Rate


2.95% + $0.20
2.95% + $0.10
2.95% + $0.10

Level 2 Rate


2.05% + $0.05
2.05% + $0.05
2.05% + $0.05

Level 3 Rate


2.05% + $0.05
1.95% + $0.10
1.95% + $0.10

VISA Interchange Rates

Real Life Merchant Savings

Merchants have seen significant savings after implementing solutions that deliver level II and III savings. Below are true savings from merchants who have begun capturing level 2 and 3 data.

Savings

Schedule an In-Depth Rate Analysis

Contact us below to find out your true savings with an in-depth rate analysis based on the corporate and purchasing cards you are using today.