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Payment optimization
The interchange fees from credit card acceptance are a part of doing business, but most businesses are unaware that card brand programs exist to help reduce these fees.
Debit optimization enables customers to do two things they are always interested in; saving money and decreasing the risk of fraudulent transactions.
Simplify your debit acceptance model
Your business authorizes and settles debit card payments using either the card brand network on the front of the card or the debit networks printed on the back. There are three key differences between these two processing paths: cardholder validation, chargeback mitigation, and costs.
Processing a debit card through card brands means using the “credit rail,” while using the debit networks is called the “debit rail.” The debit rail requires the entry of a unique, secure personal identification number (PIN) known only to the cardholder. The PIN validates that the cardholder is most likely the authorized user of that debit card, which can stop fraudulent use before the transaction is authorized. In recent years, EMV technology has helped significantly reduce cases of card fraud, however, EMV can only stop counterfeit cards, not fraudulent card users - PIN changes that. This additional layer of validation helps your business protect itself against fraudulent use and fraud related chargebacks.
Reduce fraud
There are many types of fraud, but one of the fastest growing is called friendly fraud. This occurs when a cardholder uses the chargeback process to reclaim funds by presenting a dispute based on fraud when no fraud was committed. PIN helps your business demonstrate the transaction was validated with the PIN provided by the debit card issuer and most likely authorized by the cardholder. Since the issuing bank can see whether the charge in question was secured with a PIN or not, the bank is more likely to ask for additional proof from the cardholder before presenting a chargeback on a PIN secured debit transaction. The use of PIN verification protects your businesses before you even see the chargeback hit your accounts.
PIN acceptance
The debit and credit rails carry different charges based on the prices associated with each network that provides card approval for the transaction. However, if your business does not prompt for PIN when customers use debit cards, you could pay more than necessary for your debit card transactions. Debit optimization enables PIN acceptance on PIN capable devices, and prompts for PIN immediately when a debit card is presented. While you can fall back on signature verification if you need to, prompting for PIN first enables your business to take control of debit card acceptance costs.
PIN debit
Today, most major markets require PIN on every debit card transaction. While EMV authorization indicates the debit card is valid, PIN entry validates that the cardholder is the authorized owner of the card. Not allowing a cardholder to avoid PIN by choosing to use a signature instead, eliminates the benefits of PIN authentication.
Why make the shift to PIN on debit:
- Businesses can further validate their debit payments and reduce fraud by prompting for PIN
- PIN debit authentication helps protect businesses from invalid chargebacks
- Debit networks are traditionally more cost effective than the credit networks
The interchange fees for credit card acceptance are a part of doing business. Revenue One/Elavon payment solutions consultants can identify interchange optimization opportunities.
Save on interchange optimization
Many businesses are leaving money on the table and don’t realize it. The interchange fees from credit card acceptance are part of doing business, but most businesses are unaware that card brand programs exist to help reduce these fees. A common misconception is that the payment processor’s mark-ups are the only place to save on fees. The more significant savings potential is actually in the interchange which is the hard cost of payment card acceptance. Interchange fees are those collected for the card brand and the card-issuing bank to partially cover the operational costs and risk associated with issued credit cards. Payment Processing Services charge merchants a mark-up on top of interchange, which partially covers their operational cost and financial risks associated with processing and settling card payments for merchants.
Levels of interchange
There are over 300 levels of interchange with rates ranging from as low as .05% to as high as 3.25%. What determines the cost of interchange is based on many factors, including benefits given to the cardholder and perceived risk to the card network and the card issuer. While each interchange level might have static costs pre-determined by the card brands (Visa®/Mastercard®), many transactions are eligible to qualify for payment optimization at lower-cost rates.
By optimizing interchange qualifications, transactions can land at the lower interchange rates. Interchange optimization does this by collecting additional transaction information to reduce the risk associated with each transaction. Most merchants collect Level I data, which includes the minimum information required to authorize and process a payment transaction. Collecting less data increases the recognized transaction risks for fraud, which is why Level I data carries the higher fees.
Level II and Level III transactions are enhanced data capture levels that provide more in depth transaction information, usable by the cardholder, the card brands and their issuers. The additional information is valuable to the card networks, their issuers and allow the merchant customer to qualify for lower interchange costs if the enhanced data is presented with the transaction authorization.
Revenue One/Elavon interchange optimization
Revenue One/Elavon proprietary Level II and Level III data enrichment programs bypass the merchants’ technology limitations by populating all of the data for the merchant with no up-front cost to the merchant.
Providing Level II and Level III data points can be a challenge for businesses for a variety of reasons:
- Businesses may not reliably collect the required information from their customers
- Lack a solution that can transmit the data in the required format
- Their current payment processor is not certified to process Level II and Level III data
Multi-Currency Conversion is a simple and affordable way for you to attract new customers in international markets without the need for a physical location.
Attract international customers
Multi-Currency Conversion (MCC) can reduce the risk of cart abandonment by enabling you to show prices in any of the 91 currencies available, while also reducing currency confusion, improving customer satisfaction, and driving revenue on your website.
Plus, MCC offers an easy and affordable way for your business to attract new, international customers without the need for physical locations or bank accounts in each market. You manage the checkout experience, we’ll process the currency exchange and fund you in your own currency.
The process is a simple add-on
Offering the local currency of the countries you want to do business in is a low-risk, first step to test a new geographical market. Just determine which currencies you want to support, then price your products and services in those currencies – and we handle the rest for you. Settlement and funding and net of exchange rates are provided in your home currency. Interchange rates and fees remain constant regardless of the currencies you choose to accept.
Expand your global reach
Our MCC solution works with all Visa® and Mastercard® cards and supports remote transaction environments such as ecommerce, mail order, and phone order. Choose from 91 currencies from over 100 countries to make it easy for customers across the globe to support your business.
Dynamic Currency Conversion allows you to grow your business by entering into the international market while providing convenience and better service to your international cardholders.
More than 66 global currencies accepted through Dynamic Currency Conversion
With more than 66 global currencies covered for any qualified Visa® or Mastercard® transaction, you can provide a seamless customer experience for international cardholders who want to pay in their home currency. We handle the details of currency exchange conversion, so you can focus on your business.
Let Dynamic Currency Conversion do the math
International cardholders may be wary of foreign transactions because they don’t know the actual cost in their home currency. DCC gives cardholders the payment information they need and want. It automatically identifies foreign cards at the time of authorization, and the POS device clearly displays the sale amount in local currency as well as in the cardholder’s home currency. It also shows the conversion rate and any associated fees for a completely transparent transaction.
Dynamic Currency Conversion Benefits
Dynamic Currency Conversion benefits your business as well as the cardholder.
- Transaction cost is in their home currency, providing greater transparency
- Competitive exchange rates are offered and locked-in at the time of purchase
- Minimize disputes and chargebacks
- Earn a rebated commission on every qualified DCC transaction, gaining an additional revenue stream
Expand your options for lowering the cost of accepting credit cards by offsetting the interchange cost with credit card surcharge services. Revenue One/Elavon is here to provide you the resources for surcharging credit cards with our various programs.
Reduce the cost of credit card acceptance with credit card surcharge fees
No matter the credit card, you can reliably accept and surcharge credit card payments. Plus, with credit card surcharge, you get a flat-rate PIN debit card acceptance cost of just 1% + $0.25 per transaction.
Supported regions, terminal, and products for the Surcharge program
All United States regions except for:
- Connecticut
- Maine
- Massachusetts
- Puerto Rico
talech SaaS (Mobile, Starter, Standard and Premium) supported hardware
- Moby5500
- Link/2500
- Moby M70
- Moby M120
- talech Register on the Lane3000
Note: Also supported in talech invoicing and talech online ordering
Supported stand-alone terminals
- Tetra Desk3500
- Tetra Desk5000
- Tetra Move5000
Credit card surcharge supported products on Converge
(MOTO/POS)
- iPP320
- iSC250
- Link/2500
- ICMP
Converge API
- Hosted payment page
- XML API
- Checkout.JS
- Buy button
Processing details
- Credit card surcharge works on all major credit card brands
- Merchant pays 1% + $0.25 on PIN debit card transactions
Offset the costs of credit card processing fees with merchants with convenience and service fees.
What are convenience fees?
If you accept payments online, over the phone, or through the mail, you know there are additional costs to support that payment as compared to a traditional card-present transaction. Expanded payment options may be great for customers, but it may not always be great for your bottom line. Whether it is operational costs, or just the higher cost of card-not-present acceptance, alternative payment options can be costly. Offset those payment processing costs through a convenience fee where the customer helps to cover the cost of the payment option they want to use.
Our program supports a fixed rate model that will charge the same payment processing fee on every transaction. Regardless of the payment type, if a customer pays in a card-not-present environment, you can use a convenience fee to help offset your costs of supporting that payment platform. Offering convenience can be convenient for you too. Adding this to your account is simple, easy to do, and enables you to offset the cost of accepting non face-to-face payments.
What are service fees?
Costs are a big part of managing any budget, and when working through budgets defined by grants, government funding, or other non-profit bodies, controlling costs can make a difference. Service fees are a way for certain identified types of merchants to control costs associated with accepting card payments.
Service fees can be leveraged on all payment processing transactions, not just credit cards. Plus, service fees can be implemented in card-present and card-not-present environments, not just one or the other. Service fees are charged as a separate transaction apart from the original charge. Service fees can be a flat fee or a percentage of the transaction — depending on the payment method. Unlike our other programs, there are also no set caps or rules around the service fee amount. The fee however must be reasonable as compared to the costs for processing the transaction. That gives you flexibility to leverage a fee that matches your organization’s cost model.
Payment processing fee details
Convenience fees
- Only applicable to transactions that are completed in a card-not-present environment – although not limited exclusively to card-not-present environments – and are not allowed for card-present or face-to-face transactions
- A convenience fee is valid on all forms of payment accepted through a non-face-to-face payment channel
- Should be a flat amount, regardless of the value of payment due
- The fee must be collected at time of payment – not at a later time or in a separate transaction
- Merchant must clearly disclose to the cardholder that a convenience fee is being charged, before the completion of the transaction, the cardholder must be given the opportunity to cancel the transaction
Service fees
- Visa® is the only card brand that requires a registration, which may take up to 45 days to complete
- If a service fee is charged by a government taxing authority or a third party, the merchant must be authorized to process tax payment transactions
- While no signage is required, the service fee must be clearly shown to the cardholder prior to payment and the cardholder must be provided the option to cancel the transaction
Payment optimization benefits
Revenue One/Elavon has created solutions to help add value when businesses process their transactions, whether it be debit or credit, business or commercial card. Leveraged together, businesses benefit from reduced fraud, fewer chargebacks and lower fees.