If you are a business that is just getting started or that has just recently made the decision to start taking credit cards this change can seem overwhelming. In fact, business to business credit card processing seems to have its own language that can sometimes seem difficult to interpret for new businesses.
The fact is that all business to business credit card processing is not the same. Some companies only accept some types of transactions while others are more comprehensive in the types of services and options they provide for their customers.
Regardless of what you need in business to business credit card processing services there are some important terms that any new business should become comfortable with. This will ensure you don’t misunderstand or assume something is being offered that may not be.
Processors and Merchant Banks
These are two different entities for any business to business credit card processing services. A processor is a third party bank that allows you to route credit card transactions through them for a discounted rate. They will basically manage everything in the transaction on a per transaction fee.
A merchant bank can act as a processor but is always the bank this is providing your merchant account. They too will offer a discount rate for all transactions going through your merchant account.
Card Payment Brand
This is the type of credit card that you are accepting. Each type of credit card from MasterCard to Visa or American Express will charge different fees, known as interchange fees, for each transaction. You can pick and choose which brands or types of credit cards you wish to accept based on the interchange fee.
Rules
Different credit card companies will have different rules when it comes to business to business credit card processing. However, as the merchant you are required to accept major credit cards without specific minimum or maximum purchase amounts. It is essential not to attempt to modify or change these rules as it can result in not being able to accept payment in that form if violations occur.
Before considering any business to business credit card processing it is important to talk to the company that is handling your credit card processing. This will clarify any issues with regards to fees, rules and equipment needed.
At Higher Standards we work with each of our clients to ensure the best business to business credit card processing options.
