Problem: How do I stop paying such high rates for corporate and business cards?
Solution: Stop paying 3% to 4% or HIGHER for Level 2, 3 & 4 corporate, business and purchasing cards! Save 1% or MORE to your bottom line! Here is how!
Purchasing Cards (“P” Cards), corporate cards and Business cards are company credit cards which government entities, plus large and medium sized businesses, give their employees for procurement. Purchasing cards, corporate cards and business cards are issued by a large corporate or government entity to an employee to make purchases without the time consuming task of getting an approved acquisition form. Typically they are for purchases under $10,000. These cards are authorized for certain types of business purchases.
For example: An employee may purchase industrial parts for his manufacturing firm but not take his wife out to dinner or buy gas for his family car. They are used to repair vehicles, place advertisements, or secure building maintenance to name a few approved types of purchases. The situation is that corporate cards are at a higher risk of being charged back because they are abused by employees who are issued the cards from their company. The employees are indeed tempted to use the card to take their spouse out to dinner or fill up their personal car with gas. Many of these transactions eventually get charged back. Because corporate cards are used fraudulently more often, they are considered higher risk and therefore they are charged a higher rate for card processing, often as high as 3% or 4%!
I am going to talk to you about how to PAY ONLY 1.75 % for those same corporate cards!
Let’s restate the Problem.
Corporate cards have the highest payment processing rates for merchants.
So is there any way for the merchant to get any relief? The answer is YES.
Some salesmen tell merchants that the high rates can’t be helped, that it is just the way life is. These salespeople do not have the technology to lower the risk, and therefore the rate, on business and corporate purchasing cards.
What is the Solution?
If the merchant can pass more information back through their Point Of Sale, like sales tax, shipping address, SIC code and more, the transaction is considered less risky and will qualify at a lower rate. Passing through this extra data, called Level 3 processing, shows that the sale is considered a legitimate corporate, purchasing transaction and has less risk of chargeback. It shows that the card is not likely being misused.
A new challenge now arises however, where the merchant has to have a virtual terminal that asks for this extra input for Level 3 processing. Plus the merchant has to take the time to manually enter the information, enter it correctly and not skip over any input questions. If any information is skipped, the transaction defaults back to the highest rate.
Some processors sell Level 3 processing, but it can only be handled with a virtual terminal from a computer screen with manual entry. Again, it is time consuming and if any information is skipped or entered incorrectly, the transaction defaults to the highest rate. Merchants become very frustrated and they go back to quicker ways of collecting credit card payments.
The Best Solution:
The best solution is technology which defaults the added information automatically so the merchant does not have the pains-taking task of entering it manually. Very few processors have invested in resources that solve this challenge. Electronic Money Company does have this solution. We have technology that passes the default information through a gateway, terminal or mobile app! The merchant can return to a simple “swipe and done” via a terminal or mobile app or simply collect the card number, expiration date and address online.
Save Up To 1% or more with Electronic Money Company’s Level 3 Processing Technology.
Call us to find out how you can save, on average, 1% on business, corporate and purchasing card transaction processing! 505-296-2847
