What Equipment Rental Companies Need to Know about Level Three B2B Credit Card Processing
Faith Kubicki
If you primarily rent out equipment to construction companies, contractors, government agencies, or other businesses, level three (B2B) credit card processing may help you save a considerable amount of money.
A quick primer:
- When a customer pays for a rental with their credit card, you pay your merchant acquirer a fee for processing that transaction.
- Some acquirers charge a flat rate for every transaction, but others charge variable fees based on the transaction amount, card type, and other details.
- When the customer pays with a corporate purchasing card (p-card) or government card, that transaction may qualify for Level 3 processing.
- Level three processing can be between .75 and 1.15 percent less expensive than your base processing rate – as long you as process that transaction correctly.
- If you don’t process that transaction correctly, it will receive an extra charge called a “downgrade”, and you’ll be paying a higher fee than you’d otherwise need to pay.
For companies that do a high volume or high dollar amount of B2B transactions (something we’re extremely familiar with in the rental industry!), level three credit card processing can save several thousands of dollars per month.
To qualify for the level three processing rate, however, you’ll need to meet certain criteria and pass specific data fields to your acquirer when you settle.
InTempo Makes Level Three Credit Card Processing Simple
Our credit card processing integration is already designed to support level three transactions, so you don’t have to make complicated changes on the IT side. Your sales reps and rental coordinators can keep using InTempo to write your rental contracts and reservations, then charge the customer’s card without having to go to a separate application.
When that card is a corporate purchasing card or government card, our portal automatically determines whether that transaction is level-3 eligible. For transactions that do qualify, it then helps your accounting team build a data file with all the required fields, such as the item quantity, unit of measure, and item commodity or customer code, before they settle the batch. You don’t have to type in every single data point by hand; you capture the maximum discounts with minimal work.
Take a Look at Our B2B Payment Processing Solutions
Interested in learning how level 3 (B2B) credit card processing could help save your rental business? Our team can review your most recent credit card statement to help you calculate your potential savings. Contact us today to start the conversation.
