B2B and B2G Merchants "Taking it to the Next Level" to Combat VISA Rate Adjustments

It has become an annual rite of spring for many merchants that accept credit cards - the updating dreaded VISA and MasterCard April rate. Businesses are notified annually of these impending changes, but are never fully aware of how they affect them until they see their first billing statement with the new categories and rates. For merchants who accepted credit cards for some time, these changes are unpleasant but expected. In 2007, however, even the most experienced Business to Business (B2B) and Business to Government (B2G) merchants were thrown for a loop.

With dozens of new categories of corporate cards and purchasing and processing rates of more than 10% higher in some cases, B2B and B2G merchants are scrambling to find ways to control costs. For some of these companies, especially those with higher margin goods and services to low ticket or are contractually obliged to provide goods and services at a fixed price, these changes have altered the expected benefits. Because MasterCard and visa rates to assess the same rates regardless of the merchant processor, it becomes clear that for many B2B not only they need to explore other service providers, but also more effective treatment methods.

A method of rate of descent is to achieve "Level 3" or "Tier 3" transactions. Traders moving to Level 3 of a simple data capture retail goods items or services purchased. This method of treatment can be performed on a terminal standard credit card, because it requires the use of one of many software. Although there is a cost associated with the purchase of these programs (usually between $ 500.00 and $ 1,000.00), the benefits can far outweigh the price. VISA acquisition cards are assessed a rate of over 30% lower for Level 3 transactions, for example, and the federal government purchased a large ticket rates are valued well over 40% lower than normal costs.

The profile a merchant, there are several other ways to reduce costs. Merchants tickets large can enroll in VISA or MasterCard large ticket. Other traders may also receive a special rate that B2B is based on their merchant category code. Whatever the company profile, there is always a financial incentive to enter the correct information to qualify for the AVS lowest rate offered by MasterCard and VISA.

For all B2B, it is crucial to finding a merchant processor that understands the industry and is invested in helping their customers achieve the lowest rates. The best rate for credit card processing is evil always higher than the rate that can be obtained when processing effectively with a competent partner.