Can You Benefit from B2B/B2G Level III Processing?

Do you currently accept payments from other businesses or Government agencies? Are you a manufacturer or distributor? If so, your account should be established as a Level III Processing account, not as a retail merchant account. Nearly 100% of businesses are set up as “retail,” which results in 30 to 50% higher costs to process commercial and purchasing cards.

Why do retail merchants pay higher fees than B2B/B2G merchants to process the exact same credit card and transaction?

Level 3 Processing for B2B and B2G BusinessesThe average storefront retail merchant processes credit cards by swiping the card at the point-of-sale.  This payment processing environment is referred to as card present or swiped.  Swiping a credit card is considered a low risk transaction. Because the physical credit card is there, you can request ID and compare signatures if you choose (less risk).

When a retail merchant types in a credit card number (like a B2B/B2G, manufacturer or distributor typically does), it’s processed as a keyed or card-not-present transaction. The cost to process keyed/card-not-present transactions goes up significantly. The cost to process credit cards increases along with the risk and/or costly programs associated with specific card types (rewards, detailed procurement reporting, etc.).

MasterCard, Visa, American Express, and Discover all provide drastically lower interchange rates (for substantial savings) for merchants properly set up as B2B and processing Commercial Cards.

How do I know if  I am processing as a retail or a B2B/B2G account?  

Contact Banc Certified Merchant Services to get a FREE ANALYSIS of your current processing rates. We guarantee that we can lower your rates or else we will give you $1,000!

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