Business to Business Expenses
Lower Your Rates For B2B Credit Card Processing Business To Business Credit Card Processing Straight Talk
More and more businesses are starting to pay their business expenses or invoices by offering a credit card as a form of payment. As a business accepting this form of payment for services rendered, this can be a costly form of payment unless you’re credit card processing account is set up to handle large tickets or Level III processing. Learn how to decrease your business to business credit card processing expenses.
The Pros and Cons to B2B Credit Card Processing
As a vendor, having another business pay via a credit card is good news and bad news. In the past, sending an invoice for completed services meant that the company has 30 days to make payment thus extending your receivables. These days, business moves far too fast to wait 30 days for payment. Being paid in a week or less by accepting a credit card is a great benefit. However, the downside to this is the fee associated with accepting a credit card. Fees on these types of cards can range from 2.00% all the way up to 3.25% depending on the card type and the company you’re set up with. And if you’re invoices or services are for a large amount this can be a very costly solution.
How to Decrease your Business To Business Credit Card Fees
Enter Level III credit card processing and large ticket pricing. Level III credit card processing was initially created for the government because of their large purchases. After initially establishing the program Visa realized many other businesses could benefit from the program. There are several business requirements a merchant needs to meet to qualify. The merchant also needs to submit more data with the transaction upon settlement, but the cost savings is definitely worth the extra work. Large ticket transaction pricing starts at anything over $5,000.00 per transaction. And with percentage rates in the range of 1.50% to 2.50%, it makes a credit card payment solution much more palatable. There is even a flat rate program for special circumstances.
Getting Set Up With Lower Credit Card Processing Fees
When it comes to getting set up for Level III and large ticket pricing the conversations can become quite technical. The customer who is making the payment needs to be using a Visa purchasing card, business card, or a corporate card. Next, the business that is accepting the payment needs to pass more information about the transaction as well as go through a qualification process. And then finally, the credit card processing company needs to be able to pass all the extra data to ensure qualification. The whole process is not easy and if any one piece of the puzzle is not fulfilled, then the transaction rate can be drastically higher for non-qualification. The key to getting things set up is working with an experienced representative and patience. All too often we receive calls from businesses when they already have a large transaction to process and they are attempting to get it done as soon as possible. Unfortunately, the set up isn’t always easy or quick so you need to be thinking ahead in the event it takes some time.
If you still have questions or would like more information about any of these topics, feel free to reach out to us. We provide honest, straightforward, unbiased, representation to save you hours of frustration and headaches. To learn more about how Digital Financial Group can help you and your business, feel free to reach out to us at firstname.lastname@example.org or call 623-764-7471.Let’s Talk