Large Ticket Credit Card Processing
Often times B2B and B2G transactions are for high dollar amounts. With large ticket transactions, you will save more money with a lower percentage rate and a higher per-transaction fee because the per-transaction fee doesn’t flucuate like a percentage rate.
Both Visa and MasterCard offer large ticket programs for high dollar transactions.
Mastercard has three “Commercial Large Ticket” categories with dollar value thresholds:
- Commercial Large Ticket 1 applies to transactions that are at least $7,255
- Commercial Large Ticket 2 applies to transactions that are at least $25,000
- Commercial Large Ticket 3 applies to transactions that are at least $100,000
Visa has one “Commercial Product Large Ticket” category with a dollar value threshold:
- Commercial Product Large Ticket applies to transactions that are at least $5,000
Visa has a separate “Large Purchase Advantage Fee Program” with five categories with dollar value thresholds. However, those categories only apply to select Visa Purchasing cards.
All other ther qualifying commercial cards receive the Commercial Product Large Ticket rate.
The “Large Purchase Advantage Fee Program” thresholds are as follows:
- $10,000.01 – $25,000
- $25,000.01 – $100,000
- $100,000.01 – $500,000
In addition to the dollar-value thresholds, qualifying for the large ticket interchange rates requires correctly passing-through Level 3 data. If you don’t provide Level 3 data, you will NOT qualify for large ticket interchange even if your transaction is above the dollar value thresholds listed above.
Large Ticket Interchange Rates
Visa’s large ticket rate for commercial cards is 1.45% + $35.00 per transaction. A separate GSA large ticket rate applies to General Services Administration (GSA) government cards. That rate is 1.20% + $39.00 per transaction.
For select purchasing cards, large ticket rates range from 0.40% + $58.50 to 0.70% + $49.50
MasterCard has several categories for large ticket transactions and those interchange rates range from 1.20% + $40.00 to 1.51% + $40.00
While the per-transaction fee in large ticket interchange may seem high, remember that this rate ONLY applies to higher value transactions. For large transactions, paying a lower percentage rate in exchange for a higher per-transaction fee results in much lower costs.
To view all of the current interchange rates -- Click Here
Will Large Ticket Interchange Save Me Money?
Yes. For businesses accepting a lot of purchasing or GSA cards, qualifying for Large Ticket interchange will produce significant savings.
For example, Visa’s Large Ticket interchange rate is 1.45% + $35.00. However, if you only provided enough data to qualify for the Standard Level 1 rate, you would pay 2.70% + 10 cents.
On a $5,000 transaction, you would save $27.50 in fees, but on a $25,000 transaction, you would save $137.50 in fees.
Your savings over the course of a year can quickly add up to thousands of dollars. Money that remains in your bank account instead of going into your processor's pocket.
Tailored Transactions offers the experience and expertise necessary to correctly set up your merchant account for Large Ticket Credit Card Processing.
Follow the link below to contact us for a no-obligation Free Rate Quote!
Visit us online at www.TailoredTransactions.com or call us direct at (888) 669.1686