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Category: PAYMENTS

  • Will Web3 Be the End of Stripe? An Unstable Future for Popular Payment Aggregators

    Will Web3 Be the End of Stripe? An Unstable Future for Popular Payment Aggregators

    As the digital economy continues to evolve, so too do the payment systems we rely on.

    Stripe, a popular online payment aggregator founded in 2010, is facing an uncertain future with the emergence of Web3 technology. Could these new advances in internet connectivity spell the end for Stripe and similar services?

    In this article, we will explore how Web3 technologies could potentially disrupt current payment processing solutions and examine what this might mean for service providers such as Stripe. We’ll also look at whether these challenges could lead to new opportunities that open up entirely different types of business models.

    With an ever-growing customer base, any sudden changes in how people pay could ultimately determine which companies survive and which succumb to the changing landscape.

    What Is Web3?

    Web3, also known as Web 3.0 or the decentralized web (or even the 3rd-generation application layer), is a term used to describe an evolving set of protocols and technologies that are increasingly replacing existing internet-based services through decentralization.

    Web3 is based on the blockchain technology used to create public distributed ledger networks such as Bitcoin (BTC) and Ethereum (ETH), empowering users to control their own data and make decisions about how it’s stored and secured. Users can now transact directly with each other by leveraging peer-to-peer networks for authentication, agreement, incentive structures, storage systems, and more. This evolution away from centralized intermediaries spares consumers from additional costs that stem from current Web 2.0 services.

    Speaking in terms of the payments industry, it’s possible that the new wave of Web3 technologies will be so disruptive they render popular payment processors and gateways obsolete.

    For example, crypto apps built on blockchain databases don’t require traditional payments companies anymore since these services do not need an intermediary in order for payment transactions to take place securely between two parties. This means end users won’t have any extra fees by using digital currencies instead of traditional fiat currencies when making purchases online through retail sites integrated with crypto wallets using smart contracts.

    As a comparison, right now paying with crypto is usually a crypto-to-fiat conversion (unless it’s crypto wallet to crypto wallet).

    But Web3 isn’t just about paying with crypto. It’s also about utilizing crypto technology, like the blockchain, with fiat currencies to make transactions faster and more secure.

    How would Web3 disrupt payment aggregators like Stripe?

    Web3 has the potential to drastically disrupt the payment gateway industry and its players. Stripe, a popular online payment platform, is at risk of becoming obsolete with this new advancement in internet connectivity on the rise.

    The evolution of Web3 could provide users direct access to financial activities not just limited to payments but also investments, remittances, and other associated banking services without involving an intermediary or a third-party provider such as Stripe. For PayPal, and similar providers for both retailers and consumers, the disruption brought by Web3 could seriously impact their market share if these service providers are unable to effectively adapt their business aspect.

    The emergence of blockchain and distributed ledger technologies may attempt to upend current industry dynamics. Merchants flock to Stripe because it’s simple, fast, and secure. But web3 provides simple, fast, and secure payment connections directly for all payment methods (debit, credit, crypto, etc.). So what would be the draw for new users to open a Stripe account?

    Stripe provides their service at a cost that’s higher than a traditional merchant account. If merchants can get an equally simple user experience and speed as Stripe without the hassle Stripe brings later on down the road, there’s no reason they would open a Stripe account.

    We’re not saying there will be a mass exodus from Stripe or similar services. Current Stripe users will likely continue using the service until they get burned.

    Been burned by Stripe? We can help!

    What are the potential opportunities for Stripe—or any payment processor—with web3?

    Web3, or the decentralized internet, has introduced new technologies and protocols that have the potential to revolutionize the payment aggregation landscape. Here is a list of potential opportunities for payment aggregators in the Web3 ecosystem:

    1. Cross-chain payment aggregation: Facilitate seamless transactions across different blockchain networks, allowing users to pay with various cryptocurrencies or tokens without the need for manual conversion.
    2. Decentralized finance (DeFi) integration: Offer payment aggregation services for DeFi platforms, such as decentralized exchanges, lending and borrowing platforms, and yield farming pools, enabling users to interact with these platforms more easily.
    3. Non-fungible token (NFT) marketplaces: Provide payment aggregation services for NFT marketplaces, simplifying the purchase and sale of NFTs by supporting various cryptocurrencies and tokens.
    4. Digital identity and reputation systems: Partner with decentralized identity solutions to streamline Know Your Customer (KYC) and Anti-Money Laundering (AML) processes, reducing the friction for users while maintaining regulatory compliance.
    5. Decentralized autonomous organizations (DAOs) support: Offer payment aggregation services to DAOs, allowing them to collect and manage funds from their members or for specific projects in a decentralized manner.
    6. Layer 2 payment channels: Leverage layer 2 scaling solutions to offer faster, cheaper payment aggregation services for various cryptocurrencies and tokens.
    7. Subscription-based services: Implement web3-native subscription management solutions that allow users to pay for recurring services using cryptocurrencies or tokens.
    8. Decentralized e-commerce platforms: Provide payment aggregation services for decentralized e-commerce platforms, enabling users to pay for goods and services with various cryptocurrencies and tokens.
    9. Gaming and virtual worlds: Offer payment aggregation services for web3-based gaming platforms and virtual worlds (e.g., the metaverse), enabling users to purchase in-game items or access premium content using various cryptocurrencies and tokens.
    10. Privacy-preserving payment solutions: Integrate privacy-enhancing technologies like zero-knowledge proofs or confidential transactions to offer secure, private payment aggregation services for users in the web3 ecosystem.

    By exploring these opportunities, payment aggregators can position themselves at the forefront of the web3 revolution, offering innovative solutions to users and businesses in the decentralized internet.

    What are some web3 Stripe alternatives?

    At the moment, web3 hasn’t arrived. Stripe works as you expect (though it’s not perfect). The fate of Stripe is the same as that of PayPal and Square: it’s up in the air for now.

    What we can say for certain is opening a Stripe account, PayPal account, or Square account is rarely a good long-term solution for your business. To enter the web3 era with full support for your business from your payment processor and acquiring bank, you should work to open a full-fledged merchant account designed for your business.

    Stripe, however, is a great short-term solution for your business. We expect that to continue to be true at the onset of web3 before other payment options emerge to take its place.

    Merchant accounts are your best solution for web3 because they allow you to work with multiple payment processors. Stripe limits you to whatever Stripe decides is best for your transactions at the time (that’s the gist of how payment aggregators work), meaning you can’t pick and choose how something gets processed. With a merchant account, you can link your acquiring bank to many payment processors: a standard web2 credit card processor for now, and as soon as a web3 fintech option arises that appeals to you, you can link to it.

    Merchant accounts also allow you to pick and choose which payment gateway you want to use, each of which comes with an SDK and API that’s customizable to your needs. We can only imagine the increased functionality of those resources with web3.

    That’s how you future-proof your business.

    The Bottom Line: Is Stripe Headed for Extinction?

    As the Web3 revolution unfolds, traditional payment processors like Stripe may face existential challenges that could ultimately lead to their extinction. With the emergence of decentralized finance, cryptocurrencies, and blockchain technology, the payment landscape is rapidly changing.

    Users are increasingly seeking decentralized alternatives that offer enhanced privacy, reduced fees, and greater financial sovereignty. In such a scenario, centralized payment processors like Stripe may struggle to keep up with the paradigm shift, as they are inherently reliant on the traditional financial infrastructure.

    The extinction of Stripe as a payment processor could be driven by several factors.

    • Firstly, the rise of decentralized payment solutions will likely enable users to transact directly with one another, bypassing the need for intermediaries like Stripe. These solutions can provide faster, more cost-effective, and censorship-resistant transactions, making them a preferred choice for many users and businesses.
    • Secondly, the growing importance of cryptocurrencies and tokenized digital assets in the global economy will necessitate the adoption of payment processors that can seamlessly handle a wide range of digital currencies, which may push traditional payment processors to the sidelines.
    • Lastly, the increasing demand for privacy-preserving technologies in the payment space will further challenge Stripe’s position, as the centralized nature of its services inherently makes it difficult to offer privacy guarantees.

    In conclusion, the arrival of Web3 could signify the beginning of the end for traditional payment processors like Stripe. As decentralized finance and blockchain technology continue to reshape the payment landscape, users and businesses are likely to gravitate toward more innovative, decentralized solutions that offer greater flexibility, privacy, and cost-effectiveness.

    While it remains to be seen how Stripe and other traditional payment processors will adapt to this rapidly changing environment, it is clear that their survival hinges on their ability to evolve, innovate, and embrace the opportunities presented by the Web3 ecosystem.

    ESCAPE STRIPE. OPEN A HIGH-RISK MERCHANT ACCOUNT TODAY!

  • White-Label BNPL Service Futureproofs Your Checkout

    White-Label BNPL Service Futureproofs Your Checkout

    Buy Now Pay Later services have been on the rise for years now and there’s no slowing down. We’ll get into the benefits of BNPL later, but what you need to know right now is that customers love it.

    There’s just one problem: convenience. Convenience is a double-edged sword when it comes to BNPL. Sure, it’s convenient and the result is well worth the time it takes customers to get there. But the road is long and tedious. It can be a literal roadblock on your checkout.

    The solution? White label Buy Now Pay Later services.

    In this blog post, we’ll cover what white-label BNPL is and how it can help streamline and improve your checkout process. We’ll also look at some of the benefits businesses receive from utilizing this powerful tool in their in-store or online marketplace.

    What is Buy Now Pay Later, and what is a white-label BNPL?

    Buy Now Pay Later is a type of payment gateway that allows customers to purchase goods and services now, and pay for them later. It’s a way to offer customers the convenience of buying something they want without having to immediately pay for it in full. The name says it all: customers buy what they want now and pay for it later.

    White-label BNPL is a type of Buy Now Pay Later service where an online store can be integrated with existing financial services providers such as financial institutions, credit card companies, or other third-party payment processing vendors to offer branded BNPL services.

    This white-label integration makes it easier for merchants to offer their customers more convenient ways to pay for items and services at checkout without swapping to a 3rd-party payment solution.

    What are the benefits of white-label BNPL service?

    White-label BNPL includes all the benefits of white labeling anything with even more added value.

    1. Increase Sales – White-label BNPL solutions can help increase sales by providing customers with the convenience of buying now and paying later straight from your own brand. Plus, the average order value will increase as the amount due today is less.
    2. Customization – With white labeling, businesses can customize their look and feel for a consistent experience across different channels and platforms. Businesses can also add features or services based on customer feedback or industry trends, allowing them to better serve their customers.
    3. Streamlined Checkout Process – White-label BNPL solutions help streamline the checkout process by allowing customers to quickly select their preferred payment option without having to switch between payment modes or fumble through unfamiliar options during the checkout process. This can help reduce cart abandonment and increase conversions.
    4. Increased Security – White-label BNPL services are more secure than other payment options since it uses a closed network with rigorous security protocols in place. This helps protect customers’ information while ensuring their payments remain secure throughout the process.
    5. Enhanced Customer Experience – White-label BNPL services provide customers with a seamless, personalized experience at checkout, which can lead to increased customer loyalty and satisfaction. With white-label BNPL services, businesses can also use data insights to identify potential upsell opportunities or target high-value shoppers for improved marketing efforts.

    How does white label BNPL futureproof the checkout process?

    White-label BNPL solutions are designed to make the checkout process more efficient, secure, and seamless. By using this service, businesses can better accommodate customers’ changing needs and preferences by offering various payment options that suit their individual needs.

    Plus, white-label BNPL solutions provide businesses with valuable data insights to help them understand customer behavior and improve marketing efforts for a better overall experience. As such, white-label BNPL solutions are a great way to futureproof the checkout process and ensure customers have the most convenient (and secure) purchasing experience possible.

    Current BNPL Options Are Too Tedious

    The user experience is what’s most important. It’s also what BNPL options sacrifice to provide convenience.

    Customers, at checkout, have to select the BNPL service they want to use, get redirected to that 3rd-party site, apply for the line of credit, get approved, and finally get directed back to the checkout. That’s only if the line was approved. If not? The process starts over. And that doesn’t even cover any hidden fees which can ruin customer relationships with your brand.

    During that new journey, the desire to purchase lessens especially if denied the BNPL credit line. But there’s no way for you, the merchant, to put up any safety measures. You can’t offer the customer a discount upon denial. You can’t give customers tips on why their application was denied and what will increase the odds of approval. You’re stuck at the will of BNPL.

    A Frictionless Checkout Experience Is Your Future

    Current BNPL providers, like Klarna, Affirm, and even PayPal, are great. There’s obviously a market for the technology and service. But remember these installment payments services are a whole new market, a new tech, the first draft. White label is the next level of installments that builds on the foundation that these 3rd-party fintech services have created.

    The beauty of white-label BNPL is that it works for e-commerce and physically in stores. We already know how it works online. In stores, at a physical checkout, one way for retailers to offer the service is by performing a quick credit check when the customer swipes their credit card and offering BNPL if they have enough credit. Each payment processor and POS (point of sale) device works differently, so be sure to use one that meets your needs.

    What are some best practices when offering BNPL at checkout?

    Some best practices to consider when offering BNPL at checkout include:

    • Offering multiple options for payment installments (e.g., 3, 6, 9, or 12-month terms).
    • Provide clear and concise information about the process and fees associated with BNPL payments.
    • Make sure customers are aware of any late payment penalties that may apply.
    • Use customer data to personalize the experience and offer the most suitable payment option to each shopper (e.g., better rates for loyal customers).
    • Utilizing incentives such as discounts or rewards to help encourage customers to use BNPL services rather than other payment options.

    By following these best practices, businesses can ensure their customers have a smooth and hassle-free checkout experience.

    How do I set up a white-label BNPL service for my store?

    If you want to set up a white-label BNPL installments-as-a-service for your store, the first step is to find a payment processing provider that offers this service. Once you’ve found an appropriate provider and discussed the necessary details, it’s time to integrate the solution into your checkout process via its API.

    After the integration is complete, BNPL functionality within your checkout process can be offered without having customers leave your site. This will provide shoppers with the convenience of selecting their preferred payment option while also protecting their sensitive data and ensuring secure transactions each time.

    DirectPayNet is a merchant account provider that can link you with a payment processor that offers white-label BNPL services. All you have to do is tell us you’re interested in this service and we’ll take it from there!

  • Shopify Payments Is Too Expensive! How To Pay Less

    Shopify Payments Is Too Expensive! How To Pay Less

    Current Shopify users and new small business owners, we hear your shrieks. Payment processing is an essential part of any online business, but Shopify Payment’s plans often leave us wide-eyed with shock and disgust. How can it possibly cost that much? Does everyone pay this price? How will these fees affect my profits?

    We hear you and we’re here to tell you there are ways to lower your payment processing fees on Shopify’s platform. Listen up!

    You’re Paying Too Much for Shopify

    When you’re running an online business, fees can quickly add up. Shopify may be the world’s leading e-commerce platform, and Shopify Payments may be a convenient option for making and processing payments, but it is the most expensive.

    There are ways you can lower your Shopify Payments fees though if you take the time to do some research about other payment options and their various fee structures. Your best bet is to set up multiple payment accounts that have low transaction fees so that your business can maximize its profits.

    Taking these steps will certainly help reduce the cost associated with Shopify Payments – and give your business a real return on its investment.

    Shopify uses a flat-rate fee structure.

    This means that all transactions are charged the same fee regardless of their size. The downside to this structure is that large orders made through Shopify Payments end up costing a lot more in credit card processing fees than smaller orders, reducing your business’s profits considerably.

    A better option is to choose an alternate processor that uses tiered pricing or Interchange Plus Pricing (ICP). ICP’s structure creates price tiers based on the size of the transaction and rewards businesses for processing larger orders.

    This means your business will pay less in fees when customers purchase more and ultimately, you’ll keep more of your profits.

    You are not obliged to use Shopify Payments on Shopify.

    Contrary to what Shopify wants you to believe, you are completely free to use whatever payment processor and gateway you want on your Shopify store.

    The only issue is that Shopify has made it difficult to set up other payment gateways and easy for newcomers to accept the built-in Shopify Payments gateway (called Shop Pay) without question. Therefore, you’ll need to consult customer support articles or get help from an expert to get everything configured correctly on your Shopify account.

    Once you’ve done this though, you can start accepting payments through whichever processor and gateway suits your business’s needs best – without the hefty Shopify Payment fees.

    Ways to Reduce Shopify Payments Fees

    There are a few ways to reduce your Shopify Payments fees. The most useful methods are listed below. Feel free to combine methods together for even more cost-saving power.

    Tip: As long as your checkout process can accept the most popular payment methods, i.e. credit cards (Visa, Mastercard, American Express), with a PCI-compliant gateway then your store has potential to succeed.

    Use a 3rd-party gateway and processor.

    Reducing Shopify Payments fees is essential if you want to remain profitable and maximize your earnings. One of the most reliable ways to do this is to use an alternative payment processor aside from Shopify Payments.

    Third-party payment solutions offer a range of services that make it easier for customers to buy from your store, plus they come with lower transaction fees than are otherwise available with Shopify.

    On top of that, such payment providers also offer extra features like improved fraud protection, fraud analysis, chargeback prevention, and faster payouts for completing purchases on your store. By doing so, you can keep more money in your pocket while providing your customers with a more seamless shopping experience.

    There are countless 3rd-party processing solutions available. The best one depends on your merchant category and monthly sales volume. As mentioned, Shopify Payments (and popular alternatives like Stripe and PayPal) use a flat-rate pricing structure. You should look for ones with tiered or interchange-plus structures so you have more control over what fees are accrued.

    Use multiple gateways and processors.

    If you’re looking for an even more cost-effective way of reducing Shopify Payments fees, try setting up multiple payment accounts. That way, you can spread the processing load across several different gateways and processors to further lower your fees.

    You can alter each to process specific products and cards or even from customers in different locations. It may take some effort to optimize, but once it’s done you’ll save big in processing fees.

    The gateway that works best for your store depends on the payment methods your customers prefer. Apple Pay, debit cards, Amazon Pay, ACH—whatever they prefer, you need to offer. That’s also true for in-person sales, where you need the right point-of-sale card reader to match your business needs.

    Use a Shopify plan that gives you a discount on payment processing.

    Reducing your Shopify Payments fees doesn’t have to be complicated. One straightforward way to decrease your cost is to upgrade your Shopify plan and take advantage of the payment processing discounts offered.

    Having the extra features and resources of a Premium, Advanced, or Shopify Plus pricing plan (as opposed to the Basic Shopify plan) might make things easier for your business in the long run as well.

    For instance, with an Advanced Shopify plan you can access professional reports, script editor and more. It’s up to you whether or not upgraded pricing is beneficial for you, but with the discounted processing costs it may just be worth considering.

    The caveat is that you do end up paying more as a monthly fee for the lower processing fees (which are still flat-rate). But if you process a high volume each month, say at least $20k, then the monthly cost is minimal.

    Use a credit card with cash-back rewards or by taking advantage of special promotions.

    For e-commerce merchants, Shopify Payments offers an easy and secure way to accept payment from customers. But if you really want to maximize your profits when using Shopify Payments, consider taking advantage of cash-back rewards.

    Using a credit card with generous cash-back rewards can help you earn points that can be used toward business costs. The more points you earn, the more money you can save.

    Always Be Aware of the Fees You Pay, On or Off Shopify Payments

    When handling your online store’s finances, it is important to always be aware of any fees associated with your credit card payments process.

    When utilizing Shopify Payments or another form of payment processing, pay close attention to the rates you are being charged. There are numerous benefits to using Shopify Payments– such as convenience and accessibility– but being conscious of the cost of these services is a key factor in ensuring a successful and efficient business.

    Don’t forget to do the research on other payment options that may better suit your needs and wallet size.

    FAQ: What merchants should use Shopify Payments?

    It’s not without reason to wonder who should use Shopify Payments wholeheartedly. Any new merchant—startups, new store owners, second e-commerce businesses—should use the base, flat-rate payment processor. If not Shopify Payments, then Stripe or PayPal.

    We suggest this because new merchants don’t have the credit card transaction history or business credit, yet both are needed to apply for a high-quality payment processor.

    If you operate in a high-risk industry, like selling supplements or coaching or dropshipping, then you need to get your 3 months of processing history and hurry out of Shopify Payments. This is because your industry has a higher risk of chargebacks and fraud. Meaning, you’re more likely to pay too much in chargeback fees and risk your store getting shut down if you stick around too long.

    Conclusion: Optimizing Your Processing Fees Is Easier Than You Think

    Shopify Payments is a great way to take care of your online payment needs, but you may be paying too much in fees. There are ways to reduce those fees, though, and it’s important to be aware of those methods so that you can keep your costs as low as possible.

    The best way to reduce Shopify fees is to not use their payment system at all. But how do you find a better solution? DirectPayNet will help.

    We have over a decade of experience setting up 6- and 7-figure businesses with the processing power they need to thrive at incredible rates. Get in touch to open your own merchant account today.

  • Save Money & Qualify for Level 3 Credit Card Processing Rates

    Save Money & Qualify for Level 3 Credit Card Processing Rates

    Level 3 processing offers lower interchange fees and helps businesses better navigate their data to increase profit and decrease costs. So why isn’t anyone talking about it?

    Find out what it takes to qualify for Level 3 processing, what additional information you’ll need to provide, how it compares to the other levels of data processing, and the required fields for each. Level 3 is a powerful and inexpensive way to save costs while keeping your business more organized and ready for the future of commerce.

    What is level 3 data for credit cards?

    Level 3 data is the credit card data that you won’t see when you use your credit card at a store. This includes the BIN, card type and expiration date. Level III or L3 is also used to refer to this information in general. The name comes from how it’s divided into levels: Level 1 being the consumer-facing information on a receipt and Level 2 including more detailed information about an individual purchase (like a total amount).

    Level 3 data is the most detailed of the three levels, and includes information like a cardholder’s name, address and phone number. It also includes the credit card number itself. This information can be used for fraud prevention or to help identify a customer’s preferences. It may also be used for marketing purposes.

    What does Level III data include?

    Level III data is the most detailed level of credit card data. It includes:

    • Name of the cardholder
    • Last 4 digits of the card number
    • Card verification value (CVV) or security code, which can be found on the back or bottom edge of your credit card. You may also see it referred to as CID (card identification).
    • Expiration date for the credit card.
    • Service code for the Visa or MasterCard account, which helps differentiate between different cards within the merchant account from one another (e.g., if you have multiple ecommerce businesses that all use a single merchant account). This allows your merchant services provider to process transactions more efficiently and accurately without having to contact you every time they’re not sure which business it belongs to.

    All of this information is on top of Level 1 and Level 2 data. As you can see, there’s a lot of potential once you activate L3 data.

    What is the difference between L3 and L2 data?

    Let’s break down what each data level of processing includes.

    Level 1 Data

    Level 1 data includes basic information about the transaction, such as:

    • The amount charged and currency (e.g., $10 USD)
    • Merchant ID number (MID)
    • Card type (e.g., Visa or Mastercard)

    Level 2 Data

    Level 2 data includes the above information, plus:

    • The location of the transaction (e.g., United States)
    • The date and time of the transaction

    Level 3 Data

    Level 3 data includes the above information, plus:

    • Customer ID number (e.g., 1234567890123456)
    • Merchant name and address
    • The type of business (e.g., restaurant, retail store)
    • A description of the transaction (e.g., food purchase)

    How does Level 3 processing work?

    Level 3 processing works by using a data processor to extract all of the information from each transaction. The processor then sends this data over to a business intelligence platform, where it can be analyzed and used for decision-making purposes. If you’re currently only using Level 1 and Level 2 data, this move will help you gain insight into what’s happening with your sales, costs and profits.

    The first step is to figure out what kind of data you want to collect. You’ll want to decide whether you need a specific type of information or if it’s more important to capture the movement itself. For example, if you’re looking at customer lifetime value, then it makes sense to track their purchases over time.

    If you’re more concerned with the customer’s average purchase size and frequency, then you should be tracking things like their average spend or the number of orders they place over a set period. The second step is to decide how you want to collect this data. If your company already has an existing CRM system in place, then it might make sense to use that as your starting point. However, there are many other options available today that can help automate this process for you.

    Who can use Level III processing?

    Level III processing is best suited for businesses who have a large volume of transactions and want to optimize their revenue by increasing the average spend of each customer.

    This can be especially useful if you have a subscription-based business model where customers are paying on a recurring basis. It also makes sense if your company has a wide variety of products or services that need to be sold together in order for them to be effective.

    How does Level 3 credit card processing save you money?

    The biggest benefit is a lower interchange rate by more than 1% on certain types of cards, like corporate business cards or commercial cards.

    1% doesn’t sound like much, but keep in mind that it’s per transaction and credit card processing fees can go as high as 5%. Since the discount applies mostly to corporate cards, it makes sense for merchants selling to corporations or SMBs working with large corporations. However, there are benefits to anyone who uses it.

    Level 3 data includes much more detail than L1 or L2, which allows you to adjust your marketing and sales to increase profits and customer order value.

    Other features of Level 3 credit card processing.

    Level 3 credit card processing is a great choice for business owners who want to integrate their point of sale software with accounting software. Level 3 offers built-in B2B fields that allow you to send data directly from your POS system to your accounting software. You can also use the Level 3 integration tools to send reports and track sales or inventory inside your accounting package.

    Qualifying for Level 3 processing rates.

    To qualify for L3 processing, here’s what you need:

    • Level 1 data: merchant name, transaction amount, date, and billing zip code.
    • Level 2 data: sales tax amount, customer code, merchant postal code and tax ID, invoice number, and order number
    • Product/item description (SKU)
    • Commodity code and product code
    • Unit price, extended price, discount amount, per line discount, and line item detail total
    • Quantity and unit of measure
    • Debit/credit indicator
    • Shipping/freight amount and duty amount

    After ensuring you have all of the proper information, you need to ensure that your processor supports Level 3 data as well as your payment gateway or virtual terminal. It also depends on the credit card network.

    To qualify for Visa or Mastercard Level 3 processing, you need to process at least 20k transactions annually. There are also a couple of forms to fill out and a quarterly network scan required.

    American Express and Discover do not offer Level 3 processing.

    Level 3 credit card processing makes it possible for businesses to process large B2B transactions out-of-the-box, using built-in B2B fields and integrations with accounting software.

    Level 3 credit card processing is ideal for high-volume business-to-business merchants looking to streamline their business processes. The solution is designed to help businesses process large-scale credit card transactions with ease. It includes a built-in B2B module that supports invoice and purchase order processing, level 2/3 data encryption, full business reporting and unlimited users.

    Processing Level 3 credit cards has become an essential tool for businesses that operate at a large scale. By taking advantage of these features, level 3 credit card processing allows companies to save money on credit card payment processing fees and use powerful data to improve sales and revenue.

    Looking to add Level 3 processing to your business? Speak with the experts here at DirectPayNet. We’ll help you qualify with the right processor.