Business-to-Business: Transactions eligible for Visa’s B2B interchange rate must be CPS qualified (not qualifying for Level 2 rates) and be processed by merchants operating in qualified Merchant Category Codes (MCCs). Transactions with the qualifying MCCs can be face-to-face or accepted in a card not present environment.
Visa considered many factors when selecting the eligible MCCs including, but not limited to, fostering growth in under-penetrated market segments and providing a lower rate for merchants in these categories as they tend to have higher degrees of commercial spending versus consumer spending. Visa will review MCC eligibility periodically to ensure that the appropriate categories are targeted and aligned with the goals of increasing Visa acceptance and fostering growth in Visa volume.
The Eligible Industries Are:
7801 Landscaping and Horticultural Services
1799 Special Trade Contractors – Not Elsewhere Classified
2741 Miscellaneous Publishing and Printing
2791 Type Setting, Plate Making and Related Services
2842 Specialty Cleaning, Polishing and Sanitation Preparations
4214 Motor Freight Carriers and Trucking – Local & Long Distance, Moving & Storage Companies & Local Delivery Services
5021 Office and Commercial Furniture
5039 Construction Materials – Not Elsewhere Classified
5044 Photographic, Photocopy, Microfilm Equipment and Supplies
5046 Commercial Equipment – Not Elsewhere Classified
5047 Medical, Dental, Ophthalmic and Hospital Equipment & Supplies
5051 Metal Service Centers and Offices
5065 Electrical Parts and Equipment
5074 Plumbing and Heating Equipment and Supplies
5085 Industrial Supplies – Not Elsewhere Classified
5099 Durable Goods – Default – Not Elsewhere Classified
5131 Piece Goods, Notions and Other Dry Goods
5137 Men’s, Women’s and Children’s Uniforms & Commercial Clothing
5139 Commercial Footwear
5169 Chemicals and Allied Products – Not Elsewhere Classified
5192 Books, Periodicals and Newspapers
5193 Florist Supplies, Nursery Stock and Flowers
5198 Paints, Varnishes and Supplies
5199 Nondurable Goods – Not Elsewhere Classified
6300 Insurance Sales, Underwriting and Premiums
7311 Advertising Services
7333 Commercial Photography, Art and Graphics
7349 Cleaning, Maintenance and Janitorial Services
7361 Employment Agencies and Temporary Help Services
7372 Computer Programming, Data Processing and Integrated Systems Design Services
7375 Information Retrieval Services
7379 Computer Maintenance, Repair and Services – Not Elsewhere Classified
7392 Management, Consulting and Public Relations Services
7399 Business Services – Not Elsewhere Classified
7829 Motion Picture and Video Tape Production and Distribution
8734 Testing Laboratories (Non-Medical Testing)
8931 Accounting, Auditing and Bookkeeping Services
8999 Professional Services – Not Elsewhere Classified
Your can learn more on if your business qualifies for this new low Visa B2B rate, by visiting our B2B Merchant Account page HERE
You can also visited our website at www.TailoredTransactions.com or call our offices toll free at 888-669-1686
Posted in Accept Credit Card Payments B2B Merchant Account B2B Merchant Services B2B Merchant Services Provider Commercial Credit Cards Credit Card Processing Level 2 processing Level 3 processing Merchant Account Merchant Account Setup Merchant Services Merchant Services Provider Payment Processing by .
These days, the hotel market is so oversaturated that it’s hard to find a way to make yours stick out. From large chains to small motels, luxury rooms to boutique restaurants, there is a niche out there for everyone and everything.
So how do you make sure that your hotel stands out from the crowd? How do you ensure that your customers and guests keep coming back? Well, as much as those Egyptian cotton sheets matter, a big part of what keeps your guests coming back is the kind of service you offer them.
If they feel secure and find that their stay at your hotel has gone smoothly, they’re more likely to return. If there are problems, it is likely that they won’t be back. But if you treat them right, and all goes off without a hitch, you are guaranteed that they’ll be back again.
These days, people rarely pay with cash. In fact, when it comes to booking hotels, they rarely pay with checks either – it is all about credit cards now. This is the future, and the future isn’t all about the Benjamins. It’s all about the Visa, Discover and MasterCards.
As consumers spending habits continue to trend towards plastic instead of paper, accepting credit cards and other forms of non-cash payment in your hotel becomes the only way to go – credit card processing is no longer a suggestion, nor a novelty – it’s a necessity in business!
For most businesses, hotels included, it simply makes sense to keep payment processing costs as low as possible. If you are going to be processing a lot of credit card payments, you need to have the fees as low as possible. After all, as a hotel owner, you want to keep the most of your hard-earned dollar! When you hunt for your merchant service provider, consider looking for the one who has the lowest rates in the industry, as that means you’ll keep the most of that $200 per night for each hotel room.
However, it doesn’t stop at getting the lowest rate – there’s more to consider, and as a smart hotel business owner, you’ll want to consider every option. Merchants these days need to offer more payment options than just credit cards. The future is now, and you have to keep up with it! Stay a step ahead of the competition by signing with a merchant service provider that offers advanced payment processing solutions such as debit card, check and pre-paid card processing, as well as electronic balance transfers and perhaps even revenue-generating gift and loyalty cards. In short, to do this right, you have to leave no stone unturned.
Whether you’re a brand new boutique hotel that is accepting credit cards and other payment options for the first time, or a successful empire of hotels looking to better their current credit card processing system. A good merchant service provider is one that will be committed to doing whatever it takes to help your business grow and to seeing that you stick to that bottom line and get the most for your dollar without skimping on service. A great merchant service provider will offer a safe and secure solution for all of your questions and problems, backed by incredible customer service and 24/7 support, so that whether you’re having problems at 7AM or 2PM, they’re there to listen.
Ready to take your hotel business to the next level? Here are some things to look for when setting up a Hotel Merchant Account:
• Processing for all major payment processing brands
• Real-time processing and fast authorizations, so you don’t have to worry about that angry customer whose kids are tugging on his ankles saying, “Dad, when will we get to the pool?” as he sighs loudly and drums his fingers on the check-in countertop, wondering when his credit card payment is going to go through and when he’ll be free to go
• 24-7 customer support from an experienced team, so that when things do go wrong, there’s someone there on the other end to help
• Next day access to funds, so there aren’t just low fees, but easy access to the money you’ve made
• Customized industry-specific solutions—solutions that are tailor made for the hotel industry, so that you’re sure you’re getting the things your business needs, not just the needs of say, the restaurant down the street
The list goes on and on. As you can see, you really can’t go wrong with credit card processing services – they are the only way to make sure your hotel business has its foot firmly in the future. Don’t wait, and get ahead of the competition today. Start hunting for a merchant services provider who can ensure that all your credit card transactions flow seamlessly!
Tailored Transactions offers merchant accounts customized specifically for the Hotel and Lodging industry. You can view their custom solutions by visiting the Hotel Merchant Account page on their website here: www.tailoredtransactions.com/hotel_and_lodging or by calling their offices Toll Free at 888-669-1686
One of the joys shared by many Americans is dining out. Restaurants give us a place to unwind, to enjoy an amazing meal that doesn’t require us to slave away in the kitchen, tediously chopping and preparing, or to scrub endless dishes afterward. All the hard work has been done for us. And that’s why we keep coming back. We simply arrive, make our selections, and enjoy. We’re paying for more than just the food. We’re paying for the experience. Everyone loves to be catered to, to be taken care of from time to come.
It’s clear then, as a restaurant owner, that you want to make your place of business as attractive as possible to patrons. This means creating an inviting, clean and relaxed atmosphere, crafting a mouth watering menu with plenty of tempting options for every palate, and giving your customers an easy way to pay for their service. While it may seem like an insignificant factor in the overall success of your restaurant, payment options can make or break your business. That’s why it is absolutely crucial to set up a merchant account.
A Merchant Account allows your patrons to pay with a debit or credit card. Most people feel put out, inconvenienced or just plain bothered by having to make an extra trip to the ATM before coming to your restaurant. Or perhaps they missed your “cash only” signs, and have to hunt down a cash machine after receiving their bill. This all sends a clear message to your consumers: that you’re not completely vested in their comfort and convenience. The result? They will read you loud and clear, and turn to your credit card-accepting competitors.
Convinced? Now we’re ready to get down to business. Luckily, signing up for a merchant account is a surprisingly fast, simple process. You don’t need to be an accountant or technologically inclined to get started. Start by doing a little bit of shopping around. Compare rates and find out what kind of customer service is available.
Most providers charge a monthly or annual fee to keep your service up and running. You’ll also need to pay individual transaction fees. These fees are based on a percentage of each transaction. Some providers also charge a small set up fee when you open your account.
While it can be tempting to choose a company based on whether they charge or waive setup fees, it is important to evaluate additional factors. Be sure to do your research and find out everything that’s entailed in your fees. An ethical merchant account provider will be very forthcoming and clear about the fees involved in their service.
You’ll most likely be signing a contract here, so you want to look for the lowest rates and around the clock customer service. If an issue does pop up with one of your processing terminals or software, you want the confidence of knowing there is someone who is a mere phone call away to fix the problem. Be sure the merchant account provider you choose is experienced in the restaurant industry. You’ll want an account that allows your customers to open a tab at the bar, for example, or leave a tip on their bill. Ideally, your account should allow you to use gift cards and verify checks too.
Yet another reason why it is so important to carefully research your options is the potential cancellation fee. Certain account providers charge hefty fees to end a contract prematurely. Again, some thorough comparison shopping can help you dodge this issue.
When you decide on a merchant account service that is right for you, you will be provided with the software and terminal equipment you need to start processing credit and debit card payments. In addition to adding a huge convenience for your customers, your merchant account will also make it easier for you to track and record your profits. This makes it easier to plan and budget for a long, fruitful future.
As you can see, a restaurant that accepts its customers’ credit and debit cards has a major leg up on its cash only competitors. As our society becomes increasingly paper free, the need to adapt and stay on the cusp of technology is ever more important. A merchant account can help your restaurant stay modern in the eyes of consumers, all while earning a loyal crowd of regulars. Remember to carefully compare set up, transaction and annual fees, and to inquire about the level of customer service available, and you’ll have a merchant account that is just right for your restaurant in no time flat.
Tailored Transactions offers merchant accounts customized specifically for the Restaurant industry. You can view their solutions by visiting the Restaurant Merchant Account page on their website here: www.tailoredtransactions.com/restaurant You can also give their offices a call Toll Free at 888-669-1686
Let’s take some time today to run through the basics of credit card processing and what it means to set up a merchant account.
There are countless things that go into running a successful business. You need to provide a valuable service in a way that your customers can access easily and efficiently. Public relations, advertising and marketing are just a few of the literally hundreds of factors that you must combine in order to keep your business moving forward into the future.
One thing that is becoming increasingly more important as the years pass by is the ability to accept debit and credit cards. Gone are the days when you could simply tell your customers that you only accept cash. Sure, you can still say that, but then those people will just do their business elsewhere.
Credit card processing for your business is not nearly as complex as it seems. When you sign up for a merchant account, your provider will take care of all the legwork. Here are a few simple tips to help you get started.
Assessing your Needs
The first thing you need to do is determine what exactly you are looking for in a merchant services account. Do your run your business from a physical location or is it primarily based on the Internet? Your merchant account provider can process credit cards no matter what form your business takes. Once you know what type of merchant services you need, you’ll be better equipped to choose what type of credit card terminal you need.
Retail Swipe Terminals – A retail swipe terminal is specifically for “bricks and mortar” operations where you will physically take the customer’s credit card and swipe it through a terminal. Once the information has been swiped, it will be transferred to your merchant account provider, who will process the transaction and then place the money in your business’s bank account. The nice thing about these terminals is that they have the lowest processing fees of any credit card acceptance tool. Fraud is at its lowest when people pay with cards in person, so your account provider can keep rates affordable. There are many different types of retail swipe terminals out there, from touch-screens to built-in printers to terminals that instantly accept cards without requiring a signature or a PIN number. Talk to your potential account provider about the types of terminals they offer.
Wireless Terminals – Not every business is stuck to one place, though. Delivery drivers are one group of employees who need to be able to process credit cards all over town. A wireless terminal is just like a retail swipe terminal, except you can take it anywhere you need to go. Even if you are out in the middle of nowhere, you can still swipe and store the customer’s card information and then send it out when you get back to a service coverage area.
Virtual Terminals – A virtual terminal is great for a business like a hotel. They allow you to log onto a secure server, available on any computer connected to the Internet. You can then simply punch in the customer’s credit card information to be processed. This is great for handling orders that come in over the phone, via e-mail or by fax.
Online Payments – Your merchant account provider can also help you accept credit and debit card payments through your website. They will simply set up a link on your website through which your customers can safely and securely enter their card information. All sensitive information is stored in a PCI-compliant data center and your provider will utilize fraud-detection tools to make sure everything goes smoothly. They can even instantly approve transactions so that if you are selling files online, the documents can be transferred as soon as the information is entered.
Getting Set Up
Once you have determined what you need, it is time to get your paperwork in order. You can’t just call up a merchant account provider and expect to be set up right away. First you need to prove to them that you are a legitimate business.
There are a few different ways to do this, and different providers require different materials. It is best to have all of your information ready to go before you even make the call. Dig out all past tax information, financial data and banking statements that you might have tucked away. You can also take pictures of your business, provide a copy of your business license, and even consider getting letters of recommendation from people that you work with.
Anything you can find that proves the legitimacy of your business will help to expedite the process of signing up for a merchant services account. Once your provider has all of the necessary information, it should only take a day or two for them to get you up and running to accept credit and debit cards.
So, to review: Once you’ve decided to start accepting credit cards, assess your needs to find out which merchant services you require, as well as the credit card terminals you will use. While researching merchant account providers on the web, it’s always good to speak to an account representative at the company. That way, once you have all the information you need, you’ll be able to get set up quickly so that you can start processing credit cards.
At Tailored Transactions, we pride ourselves on helping merchants setup the right type of merchant account for their business, and making that setup process as quick and easy as possible. Check out our website to view all of our payment processing solutions for credit cards, checks, gift & loyalty cards and we even offer merchant cash advances. You can view our website at www.tailoredtransactions.com or you can call our office toll free at 888-669-1686.
Posted in Accept Credit Card Payments Credit Card Processing Ecommerce Free Credit Card Terminals Internet Merchant Account Internet Merchant Account Provider Merchant Account Merchant Account Setup Merchant Services Merchant Services Provider Online Payments Payment Gateway Payment Processing Retail Merchant Account Wireless Merchant Account by .
Part of running a successful business is keeping things fresh and new. There is a lot to be said for stability and timelessness, but when things in your establishment are constantly changing, that is a great incentive for customers to keep coming in to see what exciting new developments have turned up.
For a retail business, this can mean a lot of things. You have to constantly be updating and offering new products as well as regularly changing displays and offering new weekly deals. But keeping your business fresh and new also means changing with the times in other ways.
Signing up for a merchant services account is a great way to show your customers that you are determined to grow and focused on moving forward into the future. A merchant account can provide you with a wide array of services that your customers will appreciate and that will result in more business for you. Here are a few great ways that a merchant services account can help your retail business.
Credit and Debit Card Processing
The ability to process plastic becomes more of a necessity with each passing year. Gone are the days when customers would simply accept that “cash only” sign. Maybe if you are selling something no one else has, they will make the trip to the ATM. But they will also be disappointed by your lack of customer consideration. Next time, they will probably take their business elsewhere.
A retail swipe terminal is an absolute essential for every retail outlet. Your customer just swipes their credit or debit card and your account provider will take care of the rest. The money will go through a complex series of transactions and then the money will be deposited in your account in a few short days. You do not have to worry about any of this complicated process; your account provider will take care of everything.
The great thing about these swipe terminals is that they have the lowest processing fees in the business. Account providers know that fraud is far less likely when people conduct business in person, so they pass the savings on down to you.
However, you should also be careful when accepting “free” swipe terminals from an account provider. Some will give you free credit card processing equipment but will charge you an exorbitant fee if you move to a different provider. Make sure to clarify any and all fees associated with credit card terminal placements.
Check Acceptance
Checks have been a headache for retail outlets for as long as checks have existed. They take days to clear and when they finally do, there is always that chance that you will find out one of your customers has overdrawn his account. Because of this worry, many establishments simply don’t accept checks anymore.
But with a merchant account provider, you can handle checks worry-free. They will guarantee every check, so that you’ll never have to worry about insufficient funds ever again. Your account provider will also expedite the processing so that you get the money faster than you would by just depositing it in the bank. Every check that comes through your door will also be transferred into an electronic document to make filing a breeze.
Gift Cards
It takes a lot of work to run a retail store that keeps people coming back. If you are doing an exceptional job, it is perfectly natural for your customers to want to share that experience with others. A gift card to one of your favorite stores is always a great holiday gift.
But gift cards are also great for your business. For starters, there is always a chance that the recipient is going to be a new customer. Not only that, but you are getting cash advanced to you on a future purchase.
Another great feature of gift cards is that they often go unredeemed, or else the recipient spends less than the amount on the card. This just ends up being free money for you. And what if they spend over the amount? Well that is more business for your store. It is more of you doing what you do best.
Loyalty Card Programs
One of the most difficult things about running a business is staying ahead of the competition. Competition is great for consumers. It keeps prices down and gives them a wider range of opportunities. But if the competition is too good, they could put you out of business.
Loyalty card programs are a great way to keep people coming back to your establishment. Your account provider can set up a program tailored specifically to your business. For example, if you run a coffee shop, you can create loyalty cards where your customers get a free cup of coffee for every 10 cups they purchase. This will keep people coming back to your coffee shop, and not the one down the street.
Creating the best shopping experience possible should be the number one goal for your retail business. But this experience extends beyond your products, location, and décor. It also includes the convenience with which your customers can pay, getting new ones in the door, and keeping them coming back for more. A merchant account provider, like Tailored Transactions, can help you with all of these things and more.
Contact Tailored Transactions today by visiting their website at www.tailoredtransactions.com or calling them Toll Free at 888-669-1686
Posted in Accept Credit Card Payments Check Guarantee Service Credit Card Processing Custom Gift Card Program Electronic Check Processing Free Credit Card Terminals Gift Cards Loyalty Card Program Merchant Account Merchant Services Merchant Services Provider Payment Processing Retail Merchant Account by .
Today’s economy is not particularly bustling. Naturally, these financially tough times have left Americans pinching pennies, leaving dents in the bottom lines of businesses everywhere. This applies to the tiny mom and pop corner stores and the massive corporate enterprises alike. Not one of us is exempt. If you’re searching for ways to improve your business, there’s one powerful move you can make that can dramatically help to fortify that bottom line, expand your customer base and position your company for success — signing up for a merchant account.
A merchant account enables your company to accept credit and debit card payments, an integral part of running a successful business. To get started, you’ll need to select a merchant account provider. Your provider will work with you to create an account that’s suited for your company’s unique needs and can help you stay ahead in your specific industry. The merchant account provider will also outfit you with the hardware and software needed to swipe cards, process payments and maintain accurate records of each transaction. For some businesses, this entails a credit card processing terminal at the register, while others require mobile or wireless solutions.
While the methods of payment processing vary greatly, there are some major universal benefits shared by every business that accepts credit cards. Here are just a few.
Customer Convenience
The modern day consumer wants, demands even, immediate gratification. This means that if your business is cash only, prospective customers are far more likely to patronize your credit-card-accepting competitors. It is easy to see that cash is increasingly falling out of favor. We all enjoy the freedom to make a purchase without fumbling for bills and counting change. In addition, consumers appreciate the fact that you are accommodating their chosen method of payment. While it may seem insignificant in the grand scheme of things, it’s an important courtesy that you need to extend to the patrons that make your business possible.
Brand Building
Names like Visa and MasterCard carry some serious brand recognition — the type that businesses invest countless money and time trying to generate and maintain. You can instantly associate your business with these globally established companies by proudly displaying their logos in your storefront or on your homepage. Consumers perceive companies that accept credit cards to be more established, legitimate, and trustworthy than their cash-only counterparts. Cash only businesses have a reputation for being antiquated, behind the times and just plain out of the loop when it comes to technology — not exactly the type of images that instill confidence and faith in your consumers.
Record Keeping
Cash only businesses have the misfortune of some tedious bookkeeping and countless trips to the bank. But when you accept credit cards with the help of your merchant services provider, each transaction is logged using state of the art software, and the funds are automatically deposited into your business account. Depending on the type of merchant account you choose, you can add detailed notes to your invoices. That way, if one of your valued customers ever has a question or issue with a purchase, it’s quick and simple for you to locate the transaction in your records and resolve the matter right away. In addition to simpler record keeping, this is an important part of building customer loyalty too.
Boost Sales
Perhaps the most obvious way that a merchant account can help to improve your business is by boosting sales. This makes perfect sense from a basic psychological standpoint. If a consumer has a static amount of cash in her wallet, she has a very concrete limit on what she can walk away with. She knows exactly what she can afford, and will spend no more than she initially plans. There is plenty of statistical research supporting this claim, too. In fact, a Price Waterhouse Coopers study showed that the average customer who pays with a credit card will spend three to four times as much as she will using cash or a check. Why not leverage this economic phenomenon in your favor?
Many credit card users also rack up rewards points every time they swipe. These incentive programs have more and more customers reaching for plastic for each and every purchase. Your business can benefit from these programs too — a mutually beneficial arrangement.
It’s clear that accepting credit cards is a tremendous advantage for any business. If you’re ready to get started, speak with several merchant account providers to find the rates and plans that are best for your business today, and start improving your business right away.
To get your business setup with a low-cost, secure, customized merchant account, contact Tailored Transactions today. You can visit their website at www.tailoredtransactions.com or call them Toll Free at 888-669-1686
Taking your business onto the worldwide web by setting up an internet merchant account is a great way to grow and expand your company. Just because you run an established and successful business does not mean it is too late to continue to grow on the Internet. And even if you are just getting started, bringing your goods and services onto the ‘net is a fantastic way to get the word out there.
One of the best parts about taking your business online is that you’ll no longer be limited by physical boundaries. There was once a time when the things you bought had to be purchased only at establishments that you could actually travel to. The advent of the catalog and reliable mail delivery changed this, but the Internet revolutionized it.
Now, there is virtually no limit to where in the world your business can go. Conduct an online bidding war that has a man in China battling with a teenager from Topeka, Kansas over a rare baseball card. Sell your homemade Tex-Mex salsa to a spice lover in Brussels. Entice art enthusiasts from around the world with your fine watercolors or photographs.
But business owners may be intimidated by the idea of accepting transactions online. It is a lot of responsibility, and many worry about the issue of fraud. That is why more and more people are teaming up with a trusted Merchant Services Provider to handle all of their ecommerce transactions. Here are a few ways that a merchant account provider can help your web-based business to grow.
Safe and Secure
By far the most important thing for you and your customers is knowing that you can handle your transactions securely. Everyone knows that identity theft and fraud are becoming more and more common on the web. It is no wonder that shoppers only take their business to locations that they know will be safe.
Your merchant account provider will ensure that all of the transactions that come through your website are handled with care. They use built-in security programs and value-added products in order to help prevent fraud.
Not only that but they will store all of your sensitive information on an outside data center. This is far more reliable than keeping the information on your own vulnerable home or business computer. These data centers strictly adhere to PCI-compliance guidelines. PCI-compliance is a set of rules that everyone who handles credit cards must exclusively subscribe to. A merchant account provider makes sure that you get the utmost in fraud protection.
Credit and Debit Card Acceptance
People who shop on the Internet pay for the vast majority of their purchases with either credit or debit cards. Once your customers know they can trust your site, this is the primary way in which all of your transactions will be conducted.
To be able to accept these credit card payments, your merchant account provider will set up a secure link through your site where your customers can enter their card information. The data will be sent to your provider and they will process the transaction.
From here, there are a few different ways you can set up things to be handled. If you sell something that can be instantly transferred over the Internet, then your account provider can approve the transaction immediately. If you sell music files, movies, documents, or web access, those things can be instantly approved or transferred as soon as the credit card information has been entered.
In other cases, you may not be able to send the product right away. If you have to physically mail a product or deliver a service, your account provider will simply notify you to put it in the mail. Talk to your account provider about setting up a system that works best for you.
Online Auctions
Conducting online auctions does not necessarily work for every business. For example, if you sell a line of contemporary t-shirts, you probably are not going to have people trying to outbid each other to get their hands on one. However, if you collect rare, vintage concert t-shirts, you can probably start a bidding war between fans.
The best reasons to hold online auctions is when you have a product that is either one-of-kind or extremely rare. This works for pieces of art, collectibles, and antiques of all types. If there is a niche market for something you offer, they will find their way to your products on the Internet.
Running a successful online component to your business is becoming increasingly important and profitable as time goes by. Don’t limit yourself to only servicing the people in your immediate vicinity. When you sign up for an e-commerce solution through a merchant services account to take online credit card payments , you can take your business to people from every corner of the earth.
Contact Tailored Transactions today to setup a low-cost, secure internet merchant account. With over 12+ years of experience in setting up online merchants worldwide, they will be able to help your business meet all of your online payment acceptance needs. Visit their website at www.tailoredtransactions.com or call them toll free at (888).669.1686
Dec 10
15
Multi-Tiered Pricing Explained!
The most commonly used pricing method among most merchant services providers is called Multi-Tiered Pricing. This is when they group all the interchange rates, which currently there are over 195 between Visa, MasterCard and Discover, into only a few pricing tiers. Most commonly used is either 2 Tier, 3 Tier or 4 Tier pricing.
These pricing “tiers” or categories are normally seen on your processing statement listed as Qualified (consumer debit/credit cards), Mid-Qualified (keyed-In, rewards, enhanced and world cards) and Non-Qualified (commercial and government cards).
In theory, grouping nearly 200 interchange rates into only a few categories to make merchant statements easier to read is a valid idea. In practice however, it reduces transparency and results in much higher monthly rates and fees for your business.
Four Things To Strongly Consider:
- What is considered qualified with one processor could be mid-qualified or even non-qualified with another.
- Most processors do not disclose what interchange categories are grouped into each tier. Since sometimes a lower interchange rate can be achieved by an action taken at the time of the sale, burying the actual interchange categories within the tiers can make it harder for businesses to identify these opportunities.
- Since there is so little transparency with Tiered-Pricing, it often results in misunderstandings between the processor and the merchant.
- It makes it much easier for the processor to manipulate the merchant to generate additional profits for themselves.
As a B2B or B2G business, most all of your transactions will always fall under the Mid-Qualified or Non-Qualified categories when using this style of pricing. This will mean much higher processing rates and fees each month for your business. For the very best results and the guaranteed lowest rates, you should choose to have your merchant account setup with Cost-Plus Pricing, not Tiered Pricing.
You can learn more about Cost-Plus Pricing, Visa’s B2B Merchant Program and Level 2 & Level 3 processing by visiting our B2B / B2G Merchant Services page here www.tailoredtransactions.com/b2b_b2g.html. Or, please call our office direct toll free at (888)-669-1686, and let us explain these different custom programs in more detail.
Tailored Transactions has the experience and industry knowledge to properly setup your B2B Merchant Account in the most cost effective manner possible. We look forward to helping your business save both time and money on your merchant services.
As a business who sells directly to other businesses (B2B) or government agencies (B2G), you will find that corporate, business, purchasing and government credit cards account for, on average, 75% of your credit card payments on invoices and purchase orders.
Commercial Credit Card Types:
Business Cards: Cards that are typically issued to smaller businesses. These are generally used as multi-purpose cards for both T&E and purchases. Business cards are similar to consumer cards in functionality and merchant acceptance, however, requiring Level II data for “best rate” qualification.
Corporate Cards: Typically utilized by mid- to large- sized businesses. Corporate Cards are traditionally and primarily used as T&E cards. While there are increased interchange costs for all MCCs accepting this card type, only non T&E merchants qualify to receive Level II interchange incentives and no merchants are required to pass Level III data. However, merchants may still choose to capture Level III data in order to simplify reconciliation of accounting and other systems
Purchasing Cards: Typically issued by larger businesses to Purchasing Agents within their organization, these cards minimize the costly purchase order process and allow businesses to efficiently and quickly procure products and supplies. Purchasing Cards always require Level II data in order to qualify for a merchant’s “best rate.” In addition, at this time, for merchants with large tickets, there are specific interchange qualification incentives to pass Level III data.
GSA (General Services Administration) Purchasing Cards: Virtually all branches of the United States Federal Government utilize Visa Purchasing Cards. These cards are issued exclusively by Visa and function very similar to regular Purchasing Cards, however there are special interchange requirements and rates associated with accepting GSA Purchasing Cards. Merchants do NOT need to be registered with Visa in order to take advantage of these interchange rates.
Data Requirements Explained For Level 2 and Level 3 Processing
Level I Data – Required for all card types
- · Merchant Name
- · Transaction Amount
- · Date
- · AVS info, etc
Level II Data – Interchange incentives for Corporate and Purchasing Cards
- · All Level I data
- · Sales Tax
- · Purchase ID/Invoice #
Level III Data – Interchange incentives for GSA and Large Ticket Purchasing Cards
- · All Level I data
- · Additional line item detail such as: Item description, quantity, color, shipping/freight, etc.
Why risk the chance of your business continuing to overpay on your processing fees each month. You may be paying 1-2% higher on commercial and government credit cards than you need to be.
Tailored Transactions has a wealth of experience setting up and processing for B2B and B2G businesses like your own. We specialize in structuring merchant accounts to take full advantage of the preferred pricing that is available from Visa, MC and Discover. If you suspect that you may be overpaying, or if you are just curious to seeing if we can provide you a savings, contact us today. Our rate comparison is 100% Free and comes with No obligation to any of our services.
Call us toll free at (888).669.1686 or email us at info@tailoredtransactions.com
A convenience fee is a charge for a true “convenience” in the form of an alternative payment outside the merchant’s customary payment channels. The fee must be imposed on all like transactions regardless of the form of payment used.
Both MasterCard and Visa do allow for convenience fees but both have strict policies; however, Visa’s convenience fee rules are generally more restrictive than those of MasterCard.
Below are a few of the guidelines associated with Convenience Fees:
- A convenience fee cannot be assessed in a face-to-face merchant environment.
- A convenience fee cannot be assessed for recurring payments.
- The merchant must provide a true “convenience” in the form of an alternative payment channel outside the merchant’s customary payment channels
- The convenience fee must be disclosed prior to the completion of the transaction with the cardholder being given the opportunity to cancel if not wanting to pay the fee.
- If a convenience fee is assessed it must be for all payments (Visa, MC, Discover, AMEX, ACH, Check) within a particular payment channel (mail, phone, internet).
- The MasterCard convenience fee can be tiered, % based, or a flat fee. Visa permits only a fixed or flat fee regardless of the amount of the transaction. A merchant who accepts Visa and MasterCard is restricted to a flat convenience fee.
- MasterCard allows the separation of the convenience fee transaction from the base transaction amount. Visa does not. Since all convenience fees are required to be assessed equally, a merchant who accepts Visa and MasterCard is restricted to one authorization and clearing transaction.
- A convenience fee must be assessed by the same merchant actually providing the goods and services. A convenience fee may not be assessed by any third party.
To learn more on how to properly setup a convenience fee for your business, please contact one of Tailored Transactions specialized Merchant Business Consultants at (888).669.1686 or email them directly at info@tailoredtransactions.com
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