B2B Transactions

Posted in Customer Support.

B2B Transactions.

This support tip has to do with merchants who accept credit cards from other businesses, government agencies, and suppliers. The Card Brands (Visa/MC, support-tipetc.) have reduced pricing for these types of B2B transactions as long as Level II data is sent along with the authorization request. These business-to-business (B2B) sales require the typical Level I data (merchant name, amount, and date), as well as the Level II data (zip code, tax amount, and customer code/PO number) for reduced pricing. (Read more here). In retail environments, the terminals can detect a business-issued card and will prompt the user to enter the additional fields. In a card-not-present environment, the payment gateway or software offers these fields as well.

The savings for including Level II data can be around 0.50% for these B2B sales, which often include very high average tickets, so it is well worth the effort to accommodate.