How do I reduce interchange rates?
Lots of ways! The best rule of thumb is to always receive as much data as possible about any given sale.
There are three basic requirements to process a card payment, known as "level 1" data. Level 1 data consists of submitting the card number, expiration date, and amount of the sale. Although, there are additional items that are passed through, those additional items are automatic and pass through in the background.
To ensure the lowest interchange rates, you must submit a batch every day you have a card payment. If a batch is received after the 24 hour window of the sale’s original authorization, the sale will likely be downgraded. Downgrades happen when you don't submit your sales regularly, or fail to include extra information - such as AVS information. When a downgrade occurs, the issuing bank increases their fees for the transaction (called interchange).
For B2B merchants, another huge opportunity for rate reduction is to accept level 2/3 data. Doing so can help your business realize interchange reductions of up to 50%. B2B processing is a program that can help small businesses drastically cut costs - since interchange fees usually account for 75% (or more) of your total bill, getting those rates lowered can have a huge overall impact. And, when you use the AND gateway, these savings are automatic - no extra work required!
Check out our Reducing Rates section to learn more about reducing payment expenses!
We're serious about saving money.
AND is dedicated to getting your processing rates as close to zero as possible. We utilize membership pricing along with cash discounting and surcharging programs to maximize savings. Let our analysts review your statements and see how much money we can put back in your pockets.