Credit card processing fees have become as inevitable as death or taxes. If your business accepts credit cards, you can expect a significant portion of your revenue to be taken out of your merchant statement at the end of each month. But if you deal in business-to-business (B2B), there may be a way to lower your rates as much as 1% and help you keep more of the money you earn by using a payment gateway.
In 2014, U.S. business-to-business retail accounted for half of the gross domestic product—about $8 trillion in goods. E-commerce B2B in particular is growing at a rapid rate and is expected to top $1.1 trillion by 2021.
Unfortunately for these businesses, corporate cards come with some of the highest interchange rates, which means that if you accept these cards on a regular basis, you’ll likely pay higher credit card processing fees than businesses who don’t.
Most merchants accept a range of credit cards through a standard terminal. Only the amount, date, and the name of the business is transmitted for transactions like these, and they are subject to the rates that Visa and Mastercard set for each type of card.
However, B2B businesses can save on their interchange rates for corporate cards by using payment gateways to process these cards. Gateways like Authorize.net can be set up to include more information than a standard transaction including ship from and destination postal codes, invoice number, item description, item quantity, and more. Including this information with a transaction directly affects the fees that Visa and Mastercard pass on to your business and lets you process at a lower rate.
Any business who deals in B2B or even business-to-government (B2G) and accepts corporate, payment, or government service agency (GSA) cards can benefit from accepting payments in this way, including
- Printing and shipping
- Payroll processing
- IT services
- Accounting services
- Property management
- Housekeeping and industrial clean up
Merchant Service Group LLC provides the customer support and technical expertise to guide you through the process of accepting corporate cards through a payment gateway. As an Authorize.net reseller, our team of technological experts can set up your account and make sure you have everything you need to process at the lowest rates possible.
For more information, please email us at email@example.com