Interchange Fee Optimizer
1% Lower Cost. Reduce processing costs by auto-transmitting SKU & tax data to the processor.
Receive invoice header, tax, and SKU details from ERP/Accounting and tax systems.
Auto-fill missing invoice information wherever applicable to reduce L3 to L2/L1 downgrades.
Send invoice, line item, and tax data to the processor for transactions with the settlement instructions.
Discover the fundamentals of B2B payment processors, how they work, various payment processing fees, and how to reduce those fees.
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An automated billing system integrates with your company’s ERP, CRM, payment getaways, and other software to eliminate manual intervention.
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Understand the intricacies of interchange fees with our detailed guide. Navigate payment processing with expert insights on interchange fee optimization for financial efficiency.
Read the BlogLevel 3 processing is a type of credit card transaction processing that provides detailed data to help B2B transactions save on interchange fees. It involves submitting additional line-item details like product codes, quantities, and tax amounts, and helps businesses meet compliance requirements.
By providing more data, Level 3 credit card processing enables lower interchange fees, which reduces transaction costs for merchants. This level of detail also helps companies track spending, streamline reconciliation, and comply with government or corporate purchasing regulations.
The main difference between Level 2 and Level 3 data is detail. Level 2 data has basic transaction details along with customer identification and tax amounts, while Level 3 data offers more details, incorporating line-item details like product descriptions, quantities, and individual item costs.
Level 2 data processing is often sufficient for lower-risk transactions, but it lacks the comprehensive detail that Level 3 data offers. Therefore, while both levels serve specific purposes, Level 3 data processing is essential for organizations looking to maximize efficiencies in payment processing and expense management.
To qualify for Level 3 processing, businesses must provide a detailed set of transaction data. This includes specific line-item information like product descriptions, quantities, unit costs, and other details such as ship-to addresses and discount amounts.
To qualify for level 3 processing rates often means that businesses need specialized B2B payment software that is capable of capturing and transmitting this additional level 3 data to the payment processor.
The main benefit of Level 3 processing is cost savings through lower interchange rates. By providing more detailed information about each transaction, businesses can qualify for discounted rates, which can lead to significant savings, especially in high-volume or high-ticket transactions.
Using tools like an interchange fee optimizer, which auto transmits level 3 data like tax data and Skus from ERP and helps reduce processing fees up to 1%. Another key benefit is compliance. Government and large corporate buyers often require Level 3 data for their procurement processes.
Level 3 processing involves the transmission of detailed line-item data, such as product descriptions, quantities, and prices, during credit card transactions. Unlike Level 2 processing, which includes basic invoice data, Level 3 processing provides enhanced transaction information, resulting in even lower interchange rates and greater cost savings for businesses.
Level 3 credit card processing offers several benefits for businesses, including reduced interchange rates, improved cash flow, and enhanced reporting capabilities. By transmitting detailed line-item data, businesses can qualify for Level 3 rates, resulting in significant cost savings and improved payment processing efficiency.
Auto-fill functionality automatically populates required fields with transaction data, ensuring completeness and accuracy during the payment process. This helps businesses avoid Level 3 downgrades caused by missing or incorrect information, ensuring qualification for lower interchange rates and maximizing cost savings.
Level 3 data processing allows businesses to capture and transmit detailed transaction information, providing valuable insights into purchasing patterns and customer behavior. By analyzing this data, businesses can identify optimization opportunities, tailor their payment strategies to customer preferences, and maximize efficiency and cost savings.
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