Tag Archives: Level III processing

First Data level 3 processing solutions

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Need a solution for level 3 processing with your First Data merchant account? A payment gateway that supports level 3 processing is required, but that’s not enough. Payment gateway selection and implementation impact whether a transaction actually qualifies for level 3 rates.

The main requirements to qualify for level III interchange rates are:

  1. Submit required extra order detail. This varies by card brand; for example Ship to/from ZIP code, Destination country code,VA/ tax amount, invoice number, order reference number, Discount amount, Freight/shipping amount, Duty amount, Order date, unit of measure and more.
  2. Valid authorization. For example, the authorization and settlement amount must be the same.
  3. Interchange Rate Special Requirements, which may vary by card, industry etc. For example, here are requirements to qualify for MasterCard Data Rate III
    1. U.S. Merchant
    2. Applicable Electronic Authorization Data must be included and match Settlement Data
    3. Valid Banknet Reference Number and Banknet Date in valid date format MMDD
    4. Settlement within 2 days of transaction
    5. Level II & Level III Corporate Card data (Level II Data includes the entry of customer code, card acceptor type, tax ID and sales tax. Level III Data includes Level II data, line item detail, item description, item quantity, item unit of measure, extended item amount, product code, and debit or credit indicator.)
    6. Non-T&E MCC
    7. Card Acceptor Type and Tax ID must be provided

Visa Stored Credential Framework Impacts Authorization Validity

For business, corporate and purchasing card transactions to qualify for Level 3 interchange rates, a valid authorization is required. New rules change requirements for card not present transactions using stored cards. US businesses must comply with Visa Stored Credential Transaction framework effective October 14, 2017. Without getting into too much detail, payment gateways must update to comply, and merchants will also need to make some changes going forward.

Merchant requirements include:

  • When capturing a stored credential for the first time, complete special requirements, including cardholder authentication as applicable (Managed by payment gateway or integrated solution.)
  • Send correct transaction type on subsequent transactions: Installment Payments, Recurring Payments, or Unscheduled Credential On File. (Managed by payment gateway or integrated solution.)
  • Authorization and settlement amount must match. (Managed by payment gateway or integrated solution.)
  • Obtain cardholder consent and disclosure agreement. (Most likely managed by payment gateway or merchant.)

For years, authorization and settlement amount mismatch has been a common problem for merchants to qualify for level III rates. Even if a gateway solves this problem, an integration may limit the capability. This is easily identified by EIRF, STD/ standard, level I and level II rates present in the “pending interchange” section on merchant statements.

To solve all of the above problems, merchants can use a third party payment gateway with their merchant account, that manages authorization validity and continual changes within the gateway, including integrated solutions. Below image shows before and after interchange rates from actual merchant statements; same merchant account, just changed the payment gateway.level 3 gatewayContact Christine for a level 3 payment gateway that works with your First Data Merchant Account, as well as other acquirers.

Christine Speedy, CenPOS authorized reseller, 954-942-0483 is based out of South Florida and NY. CenPOS is a merchant-centric, end-to-end payments engine that drives enterprise-class solutions for businesses, saving them time and money, while improving their customer engagement. CenPOS secure, cloud-based solution optimizes acceptance for all payment types across multiple channels without disrupting the merchant’s banking relationships.

3 Profit Boosters for Lumber, Building Materials, Distribution Companies

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Lumber, building materials, and distribution companies increase profits and cash flow almost instantly with these credit card processing and accounts receivable tips.

  1. Use a credit card processing solution that supports level III processing for retail. Prior to the October 2015 EMV liability shift, there were more companies that offered this, but today, to my knowledge, we offer the only solution that has both US EMV and level 3 retail certification.
    level 3 processing interchange rate

    Sample interchange rates for the same credit card transaction; Failing to qualify for level III is costly.

    Benefit: Potential 1% or more profit margin increase.  TIP: No countertop credit card terminal supports level 3 due to the data that must be sent with transactions; no bank currently offers a level 3 retail solution with US EMV. A cloud-based payment gateway is required.

  2. Ensure key entered transactions are sent for authorization with the MOTO (mail order, telephone order) transaction type indicator. If not, the transaction will default to the highest ‘non-qualified’ interchange rate possible for the card type, and in the event of a dispute, merchant must be able to produce a signed receipt.  TIP: Never key enter on a countertop terminal since it is set up for RETAIL. VX520 emv NFC verifone terminalThe best solution manages proper presentment for processing automatically so employees don’t need to understand the nuances of the best way to process any transaction to qualify for lower rates or mitigate risk.
  3. Enable online payments, with level III credit card processing. By empowering customers to pay 24/7, they’ll pay faster to clear up credit lines to buy more. Also, with cardholder authentication, payment can sometimes be guaranteed against fraud and qualify for even lower interchange rates due to lower risk; key entered transactions carry more risk and while risk can be mitigated, payment is not guaranteed. Accepting alternative methods like ACH, wire, and Paypal will also reduce friction, increase efficiency and increase cash flow.
On the surface negotiated rates are often great, but the right tools are critical to qualify transactions for maximum profits.  The building supply industry, including plumbing, electrical, lumber, windows, doors, stone, marble, flooring, insulation, lighting, fencing, roofing, gutters, appliances and more will greatly benefit from 3D Merchant Services solutions and consulting expertise. Free trial to measure the value with existing merchant account.

Batch processing accounts receivable and donations- Caging services solutions

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Replacing ICVerify or other legacy software for batch credit card processing? Whether you’re in the cloud, or headed there, methods of payment processing have changed to meet current and future requirements for PCI Compliance and fraud prevention. For service providers, including non-profit mail processing, payment gateway selection impacts efficiency, merchant fees, and even client PCI Compliance burden.

The first way efficiency can be increased is the batch upload process. It’s basically the same for credit card processing and check processing. Here’s comparisons for payment gateway methodology for batch upload service:

CenPOS Batch Processing File Upload

  1. Save file to configurable directory (listening folder)

CenPOS Batch Processing Response File Retrieval

  1. Retrieve one or multiple files from configurable directory (response folder)

Authorize.net, Payeezy (First Data) and similar Batch Processing File Upload

  1. Log in to your Merchant Interface at https://account.authorize.net or other
  2. Click Upload Transactions.
  3. Click Upload New Transaction File.
  4. Click Browse.
  5. Locate from your system the file that you want to upload.
  6. Click Upload File.

Authorize.net, Payeezy (First Data)and similar Batch Processing Response File Retrieval

  1. Log into the Merchant Interface at https://account.authorize.net or other
  2. Click Tools from the main toolbar.
  3. Click Upload Transactions.
  4. Click View Status of Uploaded Transaction Files.
  5. Select the desired uploaded transaction file from the Select Upload File drop-down list.
  6. Click Submit.

CenPOS increases efficiency to upload and retrieve responses, reduces friction with no login required, and also supports multi-merchant login, enabling users to toggle between accounts, creating efficiency for both the service provider and the merchant.

More BATCH UPLOAD differences authorize.net CenPOS
Custom fields (share across channels) No Yes
Reporting 2 years Indefinite
Telephone support no yes 24/7

Merchant fees are impacted when a transaction does not qualify at the lowest interchange rate possible. For example, business to business companies must submit level III data to qualify for related rates, which are often 90 basis points (0.90%) lower than without. The payment gateway must be certified for level III to each acquirer supported. Only a few payment gateways are level III certified, and even fewer of those offer an acceptable batch upload solution.

PCI Compliance burden is reduced with tokenization, outsourced payment processing, reduced vendors and reporting. The latter is critically important for forensic audits, as well as financial. The average gateway only saves data for two years, and has limited data retrieval capabilities. CenPOS audit reports cover every touch to the platform- who, what, when, and more, with records available for a minimum of 7 years to match IRS requirements, reducing the cost of on-site and remote audits.

To learn more about batch credit card processing, replacing ICVerify, and cloud payment differentiators, Contact Christine Speedy for a free consultation for all your omnichannel global payment needs.

Building Supply Industry Profits Impacted by EMV chip card terminals

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EMV terminal selection directly impacts interchange rate qualification, the bulk of credit card processing fees.

November 4, 2015– EMV, short for Europay, MasterCard,Visa, chip card terminals are in high demand, short supply, and most likely an unwelcome expense. Building material suppliers go to great lengths to negotiate with their payment processors for reduced rates, but this approach only impacts a fraction of costs. There is much bigger value is managing the entire payment process to affect the biggest component of fees – card interchange. The EMV terminal implemented will directly impact interchange rate qualification, and none of the most popular terminals recommended today meet critical lumber and building supply requirements.

Interchange rates are non-negotiable, but they can be influenced. There are hundreds of fees that can be tacked on based on each transaction type. Due to complexities, building material suppliers must have an intelligent solution to manage the payment process and ensure compliance with all the rules.

PURCHASING CARDS

To qualify for the lowest interchange rates, transactions must meet all the rules for the specific card and transaction method. For building material suppliers business to business (B2B), processing level III data for Corporate, Purchasing, and Business cards is critical. Their card use is growing and savings of 90 basis points or more for some cards is an attractive margin difference worth achieving.

mastercard rates level-lll

Sample interchange rates for the same credit card transaction; Failing to follow rules results in costly extra fees.

Countertop terminals like the popular First Data FD Series, Verifone VX series, or Ingenico iCT series, with downloaded programming, cannot support level III. The US EMV ecosystem requires a web-based payment gateway with EMV terminal and level III retail certification. For example, CenPOS has certified the Verifone MX915 to First Data, Chase Paymentech and Tsys, the latter which enables use with most processors. Merchants can use CenPOS via a web browser virtually instantly or an integrated application.

EMV COMPLIANCE DATES

While EMV is not a mandate, effective October 1, the party that does not support EMV (short for Europay, MasterCard, Visa) chip card acceptance is liable for counterfeit card, and sometimes lost or stolen card transactions. Because card issuers previously absorbed most of these losses without any notification to the merchant, businesses can expect losses if action is not taken. Additionally, non-EMV compliance fees have already been announced by at least one provider, NPC, starting January 1, 2016.

Christine Speedy, CenPOS global sales and integrated solutions reseller, 954-942-0483. CenPOS is a merchant-centric, end-to-end payments engine that drives enterprise-class solutions for businesses, saving them time and money, while improving their customer engagement. CenPOS? secure, cloud-based solution optimizes acceptance for all payment types across multiple channels without disrupting the merchant?s banking relationships.

EMV TERMINAL SELECTION IMPACTS PROFITS FOR BUSINESS TO BUSINESS

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What’s the most important EMV implementation criteria for business to business retail? Supporting level III data, which increases profit margins by qualifying credit card transactions for the lowest interchange rates possible. With proper terminal selection, businesses can quickly offset the cost of compliance for chip card acceptance, and protect long-term profit margins.

“The most recommended terminals in the US, including all the First Data FD series, Verifone VX series, and Ingenico iCT series terminals, do not meet critical business to business needs to protect profit margins, ” said Christine Speedy, a global CenPOS Authorized Reseller.

Interchange is the primary component of credit card processing fees, typically accounting for over 95% of fees. For business to business (B2B), including building supply and HVAC, many customers use corporate, business and purchasing cards. By qualifying these cards for level III interchange rates, B2B merchants can boost margins significantly. For example, the MasterCard interchange rate can drop from 2.65% to 1.80%, for transactions under $7500, and even more for larger transactions.

What’s needed to qualify for level III rates? The US EMV ecosystem at a minimum requires a web-based payment gateway that has certified an EMV terminal with level III processing to a specific acquirer. That’s because the extra data needed for the transaction is too cumbersome for a countertop terminal, but can be easily managed with a cloud solution. For example, CenPOS has certified the Verifone MX915 to First Data, Chase Paymentech and Tsys, the latter which enables use with most processors. Merchants can use CenPOS via a web browser virtually instantly or an integrated application.

While there is no mandate for chip card acceptance, effective October 1, the party that does not support EMV (short for Europay, MasterCard, Visa) chip card acceptance is liable for counterfeit card, and sometimes lost or stolen card transactions. Additionally, non-EMV compliance fees have already been announced by at least one provider starting January 1, 2016.

About CenPOS
CenPOS is a merchant-centric, end-to-end payments engine that drives enterprise-class solutions for businesses, saving them time and money, while improving their customer engagement. CenPOS’ secure, cloud-based solution optimizes acceptance for all payment types across multiple channels without disrupting the merchant’s banking relationships.

For global sales and integrations, contact authorized reseller Christine Speedy 954-942-0483.