4 Reasons You’re Missing Out on Level 3 Savings

Contact Us: 1-800-218-3683

4 Reasons You’re Missing Out on Level 3 SavingsEric Fette, sales manager at i3 Commerce Technology, says that for every 100 credit card processing statements he sees, only about 5% of merchants are taking advantage of Level 3 processing, which qualifies business-to-business (B2B) and business-to-government (B2G) transactions for the lowest rates available.

“And considering the savings these merchants are losing out on, something’s missing here,” he says.

Learn the truth to some of the most common Level 3 processing myths.

Myth #1: I’m Already Getting the Best Rates. I Shouldn’t Bother with Level 3.

Truth: Most merchants believe the only fee that can be influenced in a credit card transaction is the processor markup. “They think the interchange rate is uncontrollable and simply a pass-through fee,” Eric explains.

However, the interchange rate, which is the largest portion a merchant is charged during a credit card transaction, actually can be influenced. This is because Visa and Mastercard offer reduced rates on B2B and B2G transactions that include Level 3 detail. “A merchant can reduce their interchange rate by 1% to 1.5% simply by taking advantage of Level 3 processing,” Eric says.

Myth #2: Keying in More Data Takes Forever.

Truth: Since you need to capture line item (enhanced) details about each B2B transaction to get Level 3 rates, most people assume it’s a lengthy, cumbersome process. However, we’ve made it extremely simple and time-efficient for merchants to enter that data. “Depending on what system you use, it will know right away if your card is eligible for Level 3 rates,” Eric says.

Myth #3: I Need to Be a Computer Wiz to Take Advantage of Level 3.

Truth: “In order to achieve Level 3 processing rates, you need to use a computer or internet-capable device, which some merchants, particularly those who prefer to avoid technology, see as a hurdle,” Eric explains.

However, once Eric performs a quick demo on how to use the payment gateway, their usability concerns are often alleviated, noting that “people love the system because it’s so easy to use.”

Myth #4: Because I’m Entering Level 3 Data into a Computer, It’s Not Secure.

Truth: The payment gateway used for Level 3 processing is a web-based application. Merchants don’t need to download software and none of the information is stored on their computer. “When you’re inputting that transaction, that’s the first and last time you’ll ever see that card number,” Eric points out.

As soon as the merchant hits “process,” the information is tokenized, encrypted and PCI-compliant.

How Much Can Level 3 Save Your Business? Find Out:

Contact us online or call 1-800-621-8931

Check out i3 Commerce Technology’ newsroom.

Subscribe to Card Talk

Our monthly newsletter delivers the latest payments news straight to your inbox