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Interchange Optimization​

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interchange

Interchange Optimization

Many business to business (B2B) and business to government (B2G) merchants today are leaving money on the table, but don’t realize it. Although merchant account fees are a part of doing business, our gateway helps reduce those fees significantly on most transactions. Merchants and most processors primarily focus on the more obvious tip of the iceberg rate in hopes to achieve the best deal out there. Although that does help, the more significant savings are made in the interchange rates.

What Is Interchange?

Interchange is a rate and fee charged by the credit card issuing banks to cover the cost of handling and risk involved in bank credit or debit card transactions. Visa, MC, Amex and Discover sets those rates. Interchange is always present behind the scenes in every single transaction made, no matter what card brand, processor or merchant. Every time a transaction is processed, it’s routed to an interchange “category” that has a rate and fee assigned. There are hundreds of interchange categories.

There are over 300 levels of interchange with rates as high as 3.25% Many factors determine the cost of interchange, including benefits given to the card holder and perceived risk.

How This Works?

While each interchange level has a set rate pre-determined by the card brands, many transactions are eligible to qualify at lower-cost tiers. This is where Level 2 and Level 3 data come in. B2B and B2G merchants can save up to 1.15% on transactions when properly using Level 2 and Level 3 data.

Most merchants collect Level 1 data, which includes the minimum information required to authorize and process a transaction. Less data collected increases mitigation risk for fraud, which is why Level 1 data carries the higher fees.

On our platform, B2B and B2G merchants qualify for the best interchange rates on every transaction. This is achieved by optimizing interchange qualifications by collecting additional information to reduce the risk associated with each transaction. Our gateway knows which cards qualify for Level 2 and 3 interchange savings. This enables us to deliver the opportunity for much lower merchant processing fees. Large ticket transactions frequently benefit from this interchange optimization.

Our unique gateway populates all this required data for you to qualify your transactions for the best savings. We turn hours of work into seconds; saving you time and money.

Transaction Level Requirements

Visa requires less data upfront

Always submit AVS information and a PO number with your transactions. If you’re able to include a tax value greater than $0, you’ll qualify for Level 2 and Level 3 rates, which are even lower than regular B2B rates

MasterCard does not distinguish B2B merchants the same way Visa does

MC wants all the data. To qualify for the best data rates, make sure you input info into ALL PO fields and tax amounts greater than $0

MasterCard does not distinguish B2B merchants the same way Visa does

MasterCard wants all the data. To qualify for the best data rates, make sure you input info into ALL PO fields and tax amounts greater than $0. If you don’t, the “standard rate monster” will be knocking at your door.

 Interchange Optimization

Best Rates

Awesome Rates

Better Rates

Less Optimal Rates

MC BUSINESS DEBIT CARD

N/A

2.10% + $0.10

2.65% + $0.10

2.95% + $0.10

MC BUSINESS LVL 1 CARD

N/A

1.90% + $0.10

2.65% + $0.10

2.95% + $0.10

MC BUSINESS LVL 2 CARD

N/A

2.05% + $0.10

2.80% + $0.10

3.10% + $0.10

MC BUSINESS LVL 3 CARD

N/A

2.10% + $0.10

2.85% + $0.10

3.15% + $0.10

MC BUSINESS LVL 4 CARD

N/A

2.10% + $0.10

2.95% + $0.10

3.25% + $0.10

Large Market Credit

1.90% + $0.10
*May qualify for large ticket

2.50% + $0.10

2.70% + $0.10

2.95% + $0.10

Commercial Prepaid

N/A

2.65% + $0.10

2.65% + $0.10

2.95% + $0.10

Large Ticket

1.45% + $35.00

N/A

N/A

N/A

VISA requires less data upfront

Always submit AVS information and a PO number with your transactions. If you’re able to include a tax value greater than $0, you’ll qualify for Level II and Level III rates, which are even lower than regular B2B rates.

What’s required?

Level 3 Data

Level 2 Data Tax > $0

B2B MCC Tax = $0

Swipe Tax = $0

Key-in Tax = $0

No Tax

No AVS No Tax

Interchange Optimization

Best Rates

Awesome Rates

Great Rates

Better Rates

Good Rates

Optimal

Least Optimal

VISA COMMERCIAL PREPAID CARD

N/A

N/A

N/A

2.15% + $0.10

2.65% + $0.10

2.65% + $0.10

2.95% + $0.10

VISA CORPORATE / PURCHASING CARD

1.90% + $0.10

2.50% + $0.10

N/A

2.50% + $0.10

2.70% + $0.10

2.95% + $0.10

2.95% + $0.10

VISA BUSINESS TIER 1 CARD

N/A

2.05% + $0.10

2.10% + $0.10

2.20% + $0.10

2.25% + $0.10

2.40% + $0.10

2.95% + $0.20

VISA BUSINESS TIER 2 CARD

N/A

2.05% + $0.10

2.25% + $0.10

2.30% + $0.10

2.45% + $0.15

2.75% + $0.15

2.95% + $0.20

VISA BUSINESS TIER 3 CARD

N/A

2.05% + $0.10

2.40% + $0.10

2.40% + $0.10

2.60% + $0.20

2.85% + $0.20

2.95% + $0.20

VISA BUSINESS TIER 4 CARD

N/A

2.20% + $0.10

2.50% + $0.10

2.50% + $0.10

2.70% + $0.20

2.95% + $0.20

2.95% + $0.25