Business to Business

B2B (Business to Business) transactions can be substantially larger than many B2C (Business to Customer) transactions, which can mean quite larger credit card processing fees. The interchange rates determined by card issuers make up the largest portion of processing fees and these rates are based on various factors, such as if the card was physically present and swiped at the time of transaction or it was hand-keyed. Business credit cards also typically require more information for processing at a lower cost, including tax amounts, tax IDs and shipping information.

The following are some examples of B2B Industries:

  • Commercial Service Providers
  • Wholesale Product Vendors
  • Business Rental and Leasing
  • Professional Services
  • Government Entities
  • Manufacturers and Distributors

B2B Card Processing with Next Stage Payments can make sure your business is set up properly to accept and process business credit card payments for the lowest possible transaction costs.

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Processing Requirements for Level II and Level III B2B

The card brands have a sliding scale for Business and Purchasing cards where the more information provided during the transaction for these types of cards, the lower the interchange rate becomes. Of course there are other factors that can affect the interchange rate that a card clears at, such as how it is entered (Keyed vs. EMV chip), whether it was settled within a certain time period, and other factors, but when it comes to Business and Purchasing Cards, including additional Level 2 and Level 3 data during the transaction is an easy way to save money.

Processing requirements build on each other as the levels increase. To understand Level 3 processing requirements, we must first look at Level 1 and Level 2 processing requirements.

Level 1 Processing Requirements

  • Merchant name
  • Billing zip code
  • Purchase amount
  • Purchase date

Level 2 Processing Requirements

  • Everything from Level 1
  • Sales tax indicator and amount
  • Merchant tax identification number (TIN)
  • Merchant zip code (optional)
  • Invoice number
  • Order number
  • Customer code, applicable to only government/purchasing cards

Level 3 Processing Requirements

  • Everything from Level 1 and Level 2 processing
  • Product/SKU description
  • Product code
  • Unit price and unit of measure
  • Unit quantity
  • Discounts applied and line item total
  • Debit/Credit indicator
  • Freight and/or shipping cost
  • Duty and/or import taxes assessed
  • VAT Tax and Tax Rates (optional)
  • Destination zip code (optional)

For Business and Purchasing credit cards where the above data is required to achieve the best interchange rates, our technology solutions will automatically add this information to the transaction for you during processing, so that you can save time and always be confident that you are achieving the lowest possible cost on your transactions.

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