Lower B2B payment processing costs by 1% with 3 easy steps

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  1. Use Preferred Payments Virtual Terminal
    • Accessible From any Internet Capable Computer, Tablet or Smart Phone
    • Level 1 PCI Compliant
    • No additional Hardware to Purchase
  2. Swipe or Key Enter your Transactions
    • User Friendly Dashboard
    • Store Customer Information for Future Purchases
    • Truncated Card Numbers for Added Security
  3. Automatically Pass Level II & Level III Data
    • Business, Corporate and Purchasing Cards
    • Interchange cost lowered by up to 1%
    • Benefits B2B, B2C & B2G

Find out if the Preferred Payments B2B Virtual Terminal is right for you!

How Much Will I Save?

Preferred Payments has a solution to help your business run more efficiently when conducting transactions with Business, Corporate or Purchasing Cards. Whether it’s recurring billing or utilizing Level II or Level III data to lower your interchange rates, we have your B2B payment processing covered.

True Cost Without Level III Data

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True Cost With Level III Data

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What is Level II and Level III Data?

As you may or may not know, there are different interchange rates associated with accepting each type of credit card in use across the country. These rates or range from a true cost of .05% + $0.22 for a signature debit card to 2.95% + $0.10 for some of the business, corporate and purchasing cards. Rates may vary based on the industry type, whether they are being swiped or key entered and the amount of data that is transmitted along with each transaction. In a standard transaction you will swipe the card and provide the expiration date along with the customers billing address and zip code as data that will keep the interchange at its lowest possible rate. When it comes to business, corporate and purchasing cards, more data is required to keep these interchange rates at their lowest state. This is called Level II and Level III data and includes information such as the merchant’s tax ID, the merchant’s postal code, item descriptions and freight amounts to name a few. Preferred Payments works directly with wholesale businesses to provide a program that will auto populate these additional required fields. In turn this B2B Solution will lower rates, save valuable time and eliminate the need to purchase costly new equipment. Businesses that have taken advantage of this service generally have been able to lower their processing cost by 1% or more.

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Transactional Data and Qualifications

Level I data is standard with all transactions and consists of basic information like the card number, start and expiry date data, the CVV2 code and zip code.

Levels II applies to corporate, commercial, government and B2B transactions, and requires all of the Level I data, and in Visa’s case they require the following information:

  • Sales tax
  • Sales Tax indicator
  • A customer code
  • Purchase ID
  • Purchase ID format

Level III payments, which often include large transactions, require more detailed information, including summary data and line detail information. In Visa’s case the credit card company asks for:

  • All the Level 1 and Level 2 data
  • Destination country code
  • Shipping/courier charges
  • Discount details
  • Date of order
  • VAT information/reference number
  • Country code destination
  • And Zip code for delivery/sending

Level III line entry information required consists of:

  • Level 1 and Level 2 data
  • Commodity and product codes
  • Unit cost/charge
  • VAT details
  • The units sold
  • Quantity
  • An item description

Master Card refers to this information as data rate; some of the information MasterCard asks for it slightly different. For instance, MasterCard request a tax amount to be given.

Is Level II and Level III Processing Right for You?

Being able to accept Level II and Level III payments means investing in a specialized B2B Virtual Terminal. It would also mean educating employees so they understand the benefits of passing Level II and Level III data as well as the new Preferred Payments B2B Virtual terminal. Our B2B Virtual Terminal is user friendly and can accommodate multiple users and multiple locations.

To get a clearer picture of the possible savings you could make, contact a Preferred Payments representative for a detailed breakdown of the Level II and Level III payments that your company takes. Preferred Payments will determine if passing Level II and Level III data would be worthwhile in the long term, and a better way might be to explore other methods of reducing your credit card interchange fees.

Reducing Credit Card Processing Fees

After analyzing your credit card processing fees, you might feel that accepting Level II and Level III payments is right for your business, and depending on where your business is cased, you could already be paying extra in interchange fees.

Interchange rates are costlier for North American retailers, with an average fee of 1.76 percent compared with 0 .96 per cent for European merchants, according to ValuePenquin.com. Ecommerce stores based in the US and Canada are charged 2.13 percent per transaction. Given the additional expense that comes with accepting credit card payments, it is a good idea to explore how you could make some savings.

EMV Equipment Protects Your Business Against Chargeback Fraud | Preferred Payments

Here are some suggestions:

  • You could offset some of the fees by adding a surcharge for transactions. However, surcharges are usually unpopular among customers. Moreover, surcharging is a complicated process and there are some specific rules you need to be aware of. A change in credit card surcharge rules for B2B companies was introduced in 2013. The rules mean retailers must give their customers 30 days’ notice about any surcharges, and provide the same amount of notice to either Visa or MasterCard; other credit card companies might have different rules, and the acquiring bank also requires notice. It also illegal to pass down the credit card fees in some states.
  • Businesses who surcharge must provide notification of this at the store entry, at the point of sales and in their credit card acceptance policy. This just covers just some of the rules regarding surcharges: there are several more terms and conditions to abide by rules are complex: if you are considering surcharging to offset the costs, you should seek legal counsel.
  • Large companies with high volumes of transactions are in a good position to discuss a more favorable deal with their merchant services provider.
  • Consider changing your credit card company. The major credit card companies and banks give a blanketed solution to their customers. Speak with Preferred Payments for a solution tailored to your business type and industry specific interchange rates, which can be much more favorable than others.

Preferred Payments B2B Virtual Terminal Features & Functionality

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Customer Vault

If you have a returning client, a customer vault will allow you to keep their card on file, fully encrypted so that you have the ease of charging their card without having their card information accessible. This allows for heightened security as well as quick, efficient transactions.

Recurring Billing

Free up valuable time by using one of our recurring billing software features. You no longer have to keep a stack of credit card numbers that you manually enter once a month when a customer’s bill is due. Not only is this practice very time consuming, but in many ways it is illegal and non-PCI compliant. With the technological advances over the years, you now have the ability to securely store credit card data and set dates and amounts for these cards to be charged. This is truly a “set it and forget it” feature that will even update you when a saved credit card’s expiration date is near.

Valuable Reporting Tools

We all know that month end reconciliation can be a nightmare and very time consuming. The Preferred Payments B2B Virtual Terminal was designed to eliminate these hours of wasted time and frustration. With a click of the mouse you will now have the ability to search for transactions within a date range of your choice, by customer name, invoice #, or even the specific dollar amount of a transaction. Preferred Payments has also given you the ability to take this one step further. Create customizable reports that can be run daily, weekly or monthly and sent to the corresponding employees that will benefit from the transactional data.

E-Commerce & Shopping Cart

The predicted growth in B2B eCommerce is one reason why it is necessary to continue to accept B2B credit card payments. A report by Forrester states that by 2020, B2B eCommerce will exceed 1.1 trillion and will make up 12.1 per cent of B2B sales.

According to the key findings in the Forrester report, it is believed that by 2017, more than half of B2B buyers will be buying at least 50 percent of their company purchases online.  As well as making purchasing easier, B2B merchants benefit from lower resources by allowing customers to self-serve, and having an online outlet as well as a physical store often results in multichannel sales. The Preferred Payments B2B Virtual Terminal will give developers the functionality to integrate with the JSON API as well as the Traditional API and hosted- secure checkout and redirect. Additionally there is a user friendly, easy to use, simple shopping cart integration.

Invoicing

From within the Preferred Payments B2B Virtual Terminal you will have the ability to email a secure Invoice with embedded payment link. This link will redirect your customer to a secure payment page with predefined invoice amount and allow them to choose their payment type and complete the transaction. Both you and your customer will automatically receive email confirmation of the invoice payment.

Accounting

Preferred Payments wants to make your payment cycle as seamless as possible. We have now given you the ability to export all of your transactional data to many existing accounting software programs including QuickBooks.
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CRM

Many times in the wholesale industry, businesses work with the same customers month after month and year after year. The better you can manager these long term relationships, the more lucrative they will become. Preferred Payments works with many Point of Sale systems and payment gateways that will allow you to capture customer information and manage these relationships with ease. You will have the ability to track customer spending trends and directly target marketing strategies to the customers that it will benefit most. Customer Relationship Management will allow you to save valuable information and help to continually tend and grow your customer base.

Developer Guide

Looking for something more? Take advantage of the Preferred Payments B2B Virtual Terminal’s feature rich API. With comprehensive transaction processing features including signature capture, as well as a secure customer storage vault to help minimize PCI Scope our B2B Virtual Terminal can be customized and integrated for your specific needs.

Tips & Tricks

  • Adding Level II and Level III Data to your transactions will significantly reduce the cost for processing B2B and B2G transactions.
  • Level II and Level III Data will be passed automatically by using our B2B gateway, no extra work for you.
  • With our B2B gateway, you can email invoices payable by credit card or electronic check.

Did you know?

  • B2B e-commerce will hit $12 trillion in sales worldwide by 2020, up from $5.5 trillion in 2012.
  • Passing Level II and Level III Data will lower B2B costs between .50% and 1% , which can add up to a significant amount of savings.
  • B2B merchants process 75% of their transactions electronically.

Source: CardVault, Frost & Sullivan