Attention merchants who take corporate, business and purchasing cards! Are you a wholesale business or a supplier of parts or a supplier of construction tools or materials? Are your customers other businesses? Or maybe you are a restaurant who has clients out for a business lunch and they are writing it off with their corporate card?
It used to be that the only way to lower interchange rates was to pay attention to the method of how you took your card payment transactions. For example, a swiped card transaction has less risk and therefore a lower rate than a transaction taken over the phone and keyed into a terminal or a gateway.
The good news is that NOW there is another way to lower risk and therefore lower interchange rates. In particular, there is an opportunity to lower rates on corporate, business, and purchasing cards; high risk cards which have high interchange rates of around 3% compared to debit cards at less than 1% and other cards in the middle! Note that your processor has to charge you higher than 3% in order to provide you their service.
The purpose of this video is to bring to your attention to these particular kinds of transactions, those made with purchasing cards (“P” cards), corporate cards and business cards, and educate you on the possibility of lowering interchange rates on these cards by 1%!
Purchasing cards, corporate cards and business cards are a procurement card, 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. 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.
These types of cards have a high processing rate for the merchant of 3% because of the high risk of fraud from employees misusing their cards. However, the risk goes down, and the rate of processing goes down, if the merchant transmits back more data and information about the transaction. The fact that there is more data, and data that indicates the card is indeed being used to procure authorized types of equipment or services, reduces the risk on the card and therefore also lowers the wholesale, interchange rate. The data and information required to reduce the risk and the rate includes line item detail about the items purchased, sales tax, SIC code and more.
Entering all this extra data for each transaction via a gateway used to be a time consuming and intense process that produced frustration that many merchants weren’t willing to deal with, so they simply chose not to do it. Often if one “i” was not dotted or one “t” not crossed in the process, the merchant ended up paying the highest rate for the transaction anyway. Many credit card processing salespeople never even brought the subject up, even though some merchants might choose to complete the process.
Now You Can Get 1% Lower Rates Simply and Automatically Without making changes in the way you accept payments!
Now new technology takes all the time intensive frustration away, and transmits the data and information automatically behind the scenes with the proper set up of the merchant account. The merchant simply swipes the card in a terminal, enters it through an online e-commerce site, or swipes it through a mobile app and gets the lowest rate, saving 1% or more on the transaction.
That could be a lot of money in savings! If you process $50,000 per month in business, corporate or purchasing cards, your savings would be $500 per month, or $6000 per year! If you process $100,000 per month with these types of cards, the savings would be $1000 per month or $12,000 per year! Wouldn’t you just want to save even $1000 per year!
Give me, Gingergaye, a call at 505-296-2847 if you want to find out how much you could be saving on your credit card processing fees for business, corporate and government cards.
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