B2B Transactions: Level 2 and Level 3 Credit Card Processing
You have probably been told that business credit cards are expensive to process. What you haven’t been told is that there are steps you can take to get lower pricing.
You have probably been told that business credit cards are expensive to process. What you haven’t been told is that there are steps you can take to get lower pricing.
In keeping with the steady flow of fee increases from the card brands, MasterCard has (very) quietly announced it will begin charging businesses an annual “merchant location fee.”
CPS is an acronym associated with some Visa interchange categories. It stands for Custom Payment Service.
In a nutshell, Visa’s CPS allows a business to qualify transactions to an interchange category with a lower rate by following a set of rules.
Wells Fargo Merchant Services slips an opaque “Interchange Clearing Fee” into its interchange-plus pricing, adding more proof to the fact that interchange-plus does not guarantee competitive credit card processing fees.
The EMV liability shift has come and gone, and you probably know that if you don’t have an EMV-capable terminal to take chip cards, you’re liable for fraudulent transactions. But did you know that you may be subject to an EMV non-compliance fee, EMV non-enabled fee, or EMV non-acceptance fee?
American Express’s OptBlue program provides the possibility of lower Amex fees for businesses that know what to look for.
Credit card processing rates are a decoy that distracts from the variables that really impact cost. The biggest mistake you can make when shopping credit card processing services is to ask a bunch of processors the fateful question, “What’s your rate?”
If your business is paying qualified, mid-qualified and non-qualified charges to process credit cards, it’s paying too much. In fact, businesses that find a processor through CardFellow typically lower fees by as much as 40% by eliminating non-qualified rates.