What is Level 3 Data? Everything You Need to Know

If you’ve ever worked in the space of major business-to-business (B2B) or business-to-government (B2G) transactions, you may have heard of level three or level two payment processing. In the process of researching credit card processing, it’s a good idea to take a few minutes to understand what level one, level two, and level three credit card transactions are. Credit Card Transaction Data Level/Rate Each level of credit card transaction is associated with a set of data fields. With every credit card transaction comes some amount of auxiliary information. The most basic and common type of credit card transaction is the level 1 transaction. The basic data fields required to complete a level 1 credit card transaction are: Merchant DBA Name Billing zip code Transaction amount Additional information, such as the date and time of the transaction and additional cardholder information is automatically recorded by the bank but isn’t explicitly reported by the merchant…

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What is the Difference Between ACH & Wire Transfer?

When researching your options for a payment system, you may have come across the choice of supporting ACH transactions but weren’t quite sure if they applied to your shop. While ACH transactions make the most sense for merchants running eCommerce businesses, any merchant who conducts online transactions in any capacity could benefit from implementing ACH. ACH stands for Automated Clearing House, and you can think of it like a check without the paper. If you’re enrolled in a direct deposit program or pay your bills with monthly auto-drafts, you’re already used to using ACH. It’s a little wordy, but technically speaking: ACH is a computer-based clearing and settlement facility established to process the exchange of electronic transactions between participating depository institutions.* Every year, ACH transactions move upwards of $41 trillion dollars across 24 billion transactions.* With that in mind, it’s no surprise that ACH now represents a significant portion of…

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Gateway and Payment Processing

What is the Difference Between a Payment Gateway and a Payment Processor?

If you are a business owner, the terms payment gateway and payment processor are likely not foreign to you. In fact, they are likely something you have spent a lot of time thinking about. However, understanding the difference between the two may at times seem difficult. Yet it does not have to be so complicated. The reality is, these similar tools for payment processing are not hard concepts to understand with just a little explanation. So what exactly is the difference between a payment gateway and a payment processor? Let’s find out the answer to that question below. The Four Entities of a Credit Card Transaction Before we look at the difference between payment gateways and payment processors, it is helpful to first look at the different entities involved in a credit card transaction. There is the customer, the merchant, the acquiring bank and the issuing bank. The acquiring bank is…

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Choosing a Credit Card Processor

4 Things to Consider When Choosing a Credit Card Processor

Choosing a credit card processor is likely not something you want to think about. However, it is necessary. With everything being done digitally these days, there is simply no way to be a cash only company and still successfully build a business. This being said, we do understand that it can be a difficult decision to make with an overwhelming amount of considerations. That is why we have put together this comprehensive list of factors to take into account when choosing a credit card processor. Fraud One of the most important things that a business owner can take into consideration when it comes to payment processing is fraud. Fraud can be incredibly costly to your business and you want to find a payment processing company that will take the appropriate measures to help you avoid it at all costs. It is true, fraud is more difficult now than it has…

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