Overview Requirements of a B2B Merchant Account Level 2 and Level 3 Processing Purchasing Cards
Overview What is Interchange? Interchange Plus Pricing Interchange Optimization True Interchange Pass-Thru

REQUIREMENTS of a B2B MERCHANT ACCOUNT

When setting up your B2B Merchant Account, in order to receive the best possible Processing Rates, it’s imperative to choose a Merchant Service Provider that supports the following:

In working with our experienced APS Chicago Merchant Services team, we will be able to identify areas to optimize Interchange insuring you receive the lowest Interchange rates. And also introduce the latest virtual terminal technology to making the process of submitting additional card level data efficient and cost-effective while avoiding costly downgrades by card associations and their related Interchange fees.

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Introduction to Level 2 and Level 3 Processing

 

Promoting the acceptance of Commercial and Purchasing Cards, Visa® and Mastercard® has developed incentivized Interchange pricing for merchants who comply with Level 2 and Level 3 transaction requirements. Both Level 2 and Level 3 processing require additional information to be sent along with the card authorization allowing the customer to easily identify the transaction while reducing the risk and likelihood your sale will be contested. As a merchant, the ability for you to enhance these transactions with additional Level 2 and Level 3 information can optimize Interchange and significantly impact transaction costs by as much as 1.15%!

 

Level 2 Processing

 

Level 2 Data Requirements Include:

  • Merchant Name
  • Transaction Amount
  • Tax Amount (Between 0.1% and 31% of the total amount)
  • Transaction Date
  • Customer Code or PO number
  • Merchant Zip Code
 

Level 3 Processing

 

Level 3 Data Requirements:

If you’re doing business with larger companies or are vendor to municipal or the federal government, ……its critical to be passing Level 3 transaction data. Providing enhanced having Level 3 data acceptance may help reduce your interchange costs even further. Often times, Level 3 Interchange can be up to a full 1% lower than their standard counter parts. But in order to qualify for these rates, significant additional information such as line items, product codes, item description, unit price, unit quantities, and ship-to postal data will need to be added to the Level 2 data to provide optimal reporting to buyers and sellers.

Level 3 Data Requirements Include:

  • Invoice Number
  • Order Number
  • Item Product Code
  • Item Commodity Code
  • Item Description
  • Item Quantity
  • Item Unit of Measure
  • Item Extended Amount
  • Freight Amount
  • Duty Amount
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Purchasing Cards

 

In today’s business landscape, regardless of the size, companies are more focused on ways to reduce costs and improving efficiencies to maintain profit margins while, credit lines and factoring products have become more elusive and expensive. The result has been a shift in the procurement process towards the use of Purchasing cards as a primary method of company payment.

Purchasing Cards deliver your business customer a more efficient payment mechanism with built-in features, controls and capabilities that create a much more detailed transaction footprint and a more comprehensive purchasing record.

Purchasing Card Benefits:

  • Manage Spending and Misuse: Set purchasing controls, i.e. vendor approval, SIC Code and card spending limits.
  • Improve Accountability with Transparent Reporting: Comprehensive statements provide the necessary detail to easy reconcile card purchases.
  • Rewards & Rebates: Receive card program reward incentives through purchases.
  • Reduce Administrative Overhead: Minimizes overall process flow and labor related tasks in the Procurement process.

Purchasing Cards are now often the cheapest and most convenient payment options for larger private and public organizations when printing checks, postage, accounting paperwork and other associated costs are taken into consideration. APS Chicago simplifies the process of accepting Purchasing cards and can get you started today.