Interchange Optimization
Many Business to Government (B2G) and Business to Business (B2B) merchants today are leaving money on the table, but don’t realize it.
Although merchant account fees are a part of doing business, our solutions, gateways, and pricing help significantly reduce Processing Fees for your Credit Card 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 most significant savings are made in achieving Full Level 2 and Level 3 Optimization for the credit cards you are processing for your business.
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, Mastercard, Amex, and Discover set 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 “bucket” that has a rate and fee assigned. There are hundreds of interchange categories depending on ticket size, card brand, and many other factors.
As a Business to Government (B2G) or Business to Business (B2B) processing Government or Corporate cards you are entitled to a much lower interchange rate than our customers typically realize prior to coming to SRQ Processing.
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. B2G and B2B can save up to 1.15% on transactions when properly using Level 2 and Level 3 data.
With SRQ Processing, B2G and B2B merchants qualify for the best possible interchange rates on every transaction. This is achieved by optimizing interchange rates by collecting additional information to reduce risks associated with each transaction. Our solutions know which cards qualify for Level 2 and Level 3 Interchange Optimizations. This enables us to deliver significantly lower merchant processing fees.
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.