Level 3 Credit Card Processing to Reduce Fees and Other Costs
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Posted On :
Apr-09-2014
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Article Word Count :
475
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With the given economic crisis,businesses, big and small, are forced to look for alternatives and more cost-efficient ways to cut unnecessary costs. When running a business, whether online or offline, it is a top priority to find ways to easily accept credit card payments.
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What's the buzz behind utilizing level 3 credit card processing merchants, and how can it help businesses?
With the given economic crisis,businesses, big and small, are forced to look for alternatives and more cost-efficient ways to cut unnecessary costs. When running a business, whether online or offline, it is a top priority to find ways to easily accept credit card payments.
A company which uses the typical paper-based processors may find it more costly and inconvenient as compared to a business using commercial credit cards. Unknown to many merchants, credit card processing has 3 different levels. These three levels differ according to rates, application requirements, data and transaction reports.
What Makes Level 3 Credit Card Processing Different Than Levels 1 & 2? Cost-Cutting Strategies for Businesses
Level 1 and 2 credit card processing is slightly similar with regard to requirements. Level 1 is usually processes business-to-consumer transactions with very minimal data needed from the customer, while level 2 transactions require more data, providing the business clientele with accurate transaction reports.
Level III credit card processing collects the most data. Every business who wishes to process payments on the third level captures and passes more data, but in return would enjoy better transaction fees and interchange rates. The GSA estimates savings of up to 40%.
Level 3 credit card processing transaction reports are similar to an itemized invoice. This processing is ideal for businesses, corporations and even government agencies with larger transaction amounts and bigger deals. With this type of credit card processing, both sides will get detailed transaction reports benefiting all parties involved.
The majority of level 3 transactions is used in B2G (business-to-government) and B2B (business-to-business). Unlike business-to-consumer transactions, B2B and B2G have less fraud and significantly lower chargeback rates, allowing for the lower interchange fees and costs. This additional data also reduces false allegations of fraud and reduces mis-claimed chargebacks due to the additional data captured at time of transaction.
This strategy is often times being used by businesses who wish to cut costs without having to sacrifice the quality of service delivered to clients. While the process of providing Level III credit card transactions may be more involved than the first two tiers, the savings can be significant. After a one time set up the process is seamless. Finding out what the business requires and choosing the right level of credit card processing can make a huge difference with regards to credit card processing fees.
In addition to being able to understand the differences of these 3 levels, finding the right merchant processor to handle all these transactions also play an important role, so choose wisely and take time to research on the best merchant processor that is capable of providing the best rates and solutions for one's business.
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Article Source :
http://www.articleseen.com/Article_Level 3 Credit Card Processing to Reduce Fees and Other Costs_295834.aspx
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Author Resource :
The author has an immense knowledge on GSA purchasing. Know more about Level 3 Credit Card Processing related info in his website.
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Keywords :
GSA purchasing, Level 3 Credit Card Processing, Processing of government credit cards, save on credit card fees,
Category :
Finance
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Finance
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