Accepting credit card payments has become an essential part of doing business in today's world. However, not all credit cards are created equal, and some come with higher fees than others. This is where Level 2 and Level 3 business, corporate, and government purchasing cards come into play.
What are Level 2 and Level 3 Purchasing Cards?
Level 2 and Level 3 purchasing cards are specialized credit cards that are used by businesses, corporations, and government agencies to make purchases. These cards are designed to help these organizations streamline their purchasing processes and provide them with more detailed transaction data.
Level 2 purchasing cards are typically used for transactions that involve larger amounts of money, such as business-to-business transactions. These cards require additional data to be submitted with the transaction, including the customer code, tax amount, and merchant postal code.
Level 3 purchasing cards are used for even larger transactions, such as government contracts or corporate purchases. These cards require even more detailed transaction data, including line item details, product codes, and quantity information.
The Benefits of Accepting Level 2 and Level 3 Purchasing Cards
While accepting Level 2 and Level 3 purchasing cards may require additional technical expertise, the benefits can be significant. For businesses that process these cards correctly, they can save up to 1.5% in fees charged for accepting these cards. This can add up to significant savings over time.
However, if businesses do not accept these cards with the right technical data, they may end up paying a lot more in fees. This is where third-party payment processors can come in to provide that extra technical level to save money to their bottom line.
By accepting Level 2 and Level 3 purchasing cards, businesses can also gain access to more detailed transaction data. This can help them better understand their customers' purchasing habits and make more informed decisions about their inventory and pricing strategies.
In conclusion, accepting Level 2 and Level 3 purchasing cards can be a smart move for businesses, corporations, and government agencies. While it may require additional technical expertise, the savings and benefits can be significant. By partnering with a third-party payment processor, businesses can ensure that they are processing these cards correctly and maximizing their savings. So, consider implementing Level 2 and Level 3 purchasing card acceptance into your business strategy to put 1%-2% back into the profit margin of your business.
Learn how to drastically reduce your B2B and B2G card fees, contact KenGivens@USmsTexas.com or call 888-995-3995.