Lets Talk Credit Cards

SalesMGR1011

I see there is alot of talk on credit card acceptance and some confusion as there are so many options out there. As some of you know I am the sales and marketing manager at a decent sized general contracting company. On another note I own a small merchant services company with a partner that specializes in credit card processing, check services, Gift cards, and Loyalty programs. I actually started this business to be able to better understand the industry to save myself some money and since has grown quite a bit. My partner has about 12 years experience in the business myself a couple. This is not a solicitation what so ever. You may or may not know but all credit card service companies buy from visa and mastercard at the same rate for the most part, it is just how much they mark it up in between from rates to fees. I would be more than willing to answer any questions anyone has in regards to credit card processing for their business.

SLSTech

Goverment Payment Cards - I never see those listed on any of the diffrent "processing" sites - what does it take to accept them / any special fees?

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SalesMGR1011

You need to find a processor that accepts what is called level 3 payments. This is becoming more and more popular as a form of payment. At our company we do alot of government work and accept this form of payment. I have a couple of companies in california that I represent that do as well. They are actually the least expensive processing rate, but require more detail when entering and not all providers and machines accept them.

Here is a breakdown of all three levels


Level I processing

skip to next wordPurchases made with personal credit cards issued from U.S. banks qualify as Level I transactions. This means that the only information the merchant must pass to process the transaction is the merchant's name, transaction amount, and the date.
Level II processing

skip to next wordLevel II transactions normally involve corporate cards issued from a U.S. bank. Transactions that qualify for Level II processing cost the merchant less than Level 1 transactions. To qualify for Level II, a transaction must be passed with: merchant name, transaction amount, date, tax amount, customer code, merchant postal code, tax identification, merchant minority code, and merchant state code.
Level III processing

skip to next wordOf the 3 different levels of credit card processing, Level III provides the lowest transaction processing rate. But, in order to qualify for the lowest rate, Level III transactions must be passed through the processing system with much more detailed transaction information that Level I or II transactions. Because so much information must be transmitted, not all terminals are equipped to process Level III transactions. Purchases that qualify as Level III transactions generally are made with government credit card or corporate cards.

polljimmy

Credit cards are reserved for the occasional pricey purchase, while others think they're perfect for everyday use. Sound arguments can be made for both approaches, but to bypass strife, each person should voice their opinion and agree to unambiguous charging practices. Specifically, decide which regular and occasional expenses -- from monthly household bills to vacations and emergency purchases -- are acceptable to put on plastic.