As a merchant service provider we can only assume businesses are uninterested in learning about card processing savings for two reasons: a lack of knowledge about how credit card processing works, or, those never ending cold calls. Before you hang up, let us demystify at least one major chunk of the credit card processing enigma. Sorry, we can’t help all those other guys lose your number.
Credit Card transactions typically pass a minimum of three pieces of data; card numbers, expiration dates and three-digit security codes. What many businesses do not realize is that there are as many as twenty five additional fields of data that can be passed with each transaction. By passing this enhanced data known as Level II and Level III data, you are lowering the risk in the eyes of the card brands and lowering the true cost. Some may not be aware that every credit card has its own interchange rate or cost that ultimately contributes to the bottom line of running business. True cost Interchange rates are as low .05% while others can be as high as 3.50%. Typically, B2B purchases are made with corporate, business and purchasing cards, which typically have the highest rates in the industry.
There are solutions available that can lower your B2B costs by 1%. The catch? Usually a monthly service fee that will help you save thousands while also simplifying and increasing the safety of your B2B sales. For example, at Preferred Payments, we have a robust virtual terminal that will store customer’s information for future sales, automatically recognize business, corporate and purchasing cards and pass the corresponding Level II and Level III data required for the lowest rates, as well as provide detailed reporting making your accountant and bookkeepers lives much easier.
The wholesale industry differs from the typical face to face retail transaction and for this reason you do not need a clunky credit card machine taking up counter space. The only equipment you will need to take advantage of this virtual terminal is an internet connected device, whether it’s your office computer, tablet or smart phone.
While we understand that the annoying phone calls, pages full of numbers and bad experiences of hidden fees and contracts have many business owners skeptical, you need to find a provider that you trust. While the “if it ain’t broke don’t fix it” mentality may not have led you wrong thus far, it could be costing you a substantial amount of money.
About the author
Preferred Payments has been a provider of B2B payments and technology for over 10 years. As a direct processor we have eliminated the middle man and pride ourselves on our hands-on approach when working with our clients. Direct accountability is the foundation of our business model, this means no overseas call centers or hours spent on hold to answer a simple question. As a Preferred Merchant you also receive a direct account representative, a merchant account custom-tailored to your specific needs and transparent rates that are locked in for the life of your business. Feel free to check out Preferred Payments B2B solutions and if you have any questions or would like to contact us we’d be more than happy to arrange a demonstration with your business and show you just how simple it is to save thousands of dollars.