Merchant account processing has many complicated facets. A particular facet that Verisave’s saving experts have learned to manage is a company’s credit card processing level. There are several things which can influence a business’ interchange rates. One aspect is the interchange level by which a company’s transactions are processed.
This is not the same as interchange transactional input. While your company’s interchange rates are affected by how your company receives payment, interchange levels are dependent on purchaser information, which is restricted to purchasing and commercial credit cards.
Credit Card Processing Levels
Level 1 – Unless a merchant actively provides more information, all merchant accounts are processed at level 1 interchange rates. All B2C credit cards are processed at level 1 interchange rates.
Level 2 – Requires a moderate amount of information about the transaction, such as the card acceptor tax ID.
Level 3 – Extensive information is required to qualify for level 3 interchange rates.
Information Needed For Level 2 Interchange Rates
American Express, Mastercard, and Visa all have 3 levels of interchange rate processing. They all call it something slightly different, such as data rates and enhanced data, but it all refers to the information your company can provide for the credit card payment. Discover has very few interchange levels and processes most transactions at the same interchange level rates.
Each of the three card networks have different requirements to qualify for level 2 interchange rates:
Visa Level 2 Interchange Data – The majority of the information needed for this level of interchange data pertains to purchasing information.
Mastercard Level 2 Interchange Data – Mastercard’s level 2 information is similar, but primarily focuses on the tax information associated with the product purchase.
American Express Level 2 Interchange Data – As American Express retains all their fees in network, they perform various checks at different times of the year to see how compliant your mechant information is to achieve level 2 interchange rates.
Depending on the focus of your company, you may be required to supply more or slightly different information. Also, the above information is subject to change at the discretion of the card network, which is why it is critical to work with those who have years of experience in merchant account savings.
How Verisave Can Help Businesses Achieve The Best Interchange Rates
As interchange rates change on a regular basis, it is vital that companies receive top-of-the-line aid in staying up-to-date with the intricacies of credit card processing interchange rates. This is exactly what Verisave provides.
Verisave takes pride in being a premier provider of merchant account saving services. To test our experience, Verisave invites your company to submit its most recent merchant account statement for our free analysis consultation. Our savings experts will go over your company’s statement and present a savings analysis to you within 2-3 days. If your company decides to move forward with our savings plan, then Verisave gets right to work and in many cases can achieve results in a few week’s.