Can Your Retail Business Use Level 3 Processing?
Posted by Dane Bronson on November 20th, 2020
If Most of Your Clients Are Corporates, Then You Should Consider a Specialized Retail POS!
The level 3 processing method can be used by companies in the b2b field. So, even if you have a retail business, but if most or all your clients are other companies, then you should search for a payment processing company that helps you use this type of processing method. The main benefit that you will get is a reduction in the transaction costs that you will have to pay. Also, a specialized retail POS will provide you extra benefits, like next-day founding. But how important are these benefits?
The first thing that you need to know is the difference between the transaction costs of level 1 and level 3 processing methods. If you find one of the bests payment processing companies, then you can save up to 1% per transaction. For some companies, this amount is insignificant, but for others, it means a lot of money. Everything depends on the sales volume of your company. If your sales volume is under 10.000$/month, then a 100$ reduction may seem too little. But you sell more than 100.000$/month, then 1000$ may allow you to hire one more person, which will produce even more money for the company. And this is a compounding benefit. So, you can only imagine the benefits that you will get in the long term.
The second benefit that you can expect from a specialized retail POS service is the “next day founding”. This means that all money from the sales that you make in a day will be in your account by the next day. If you want to understand why this is a great benefit, then you should know that most credit card processing alternatives require you to wait for 3 to 5 days until the money will be sent to your account. But you may need the money in that interval. And you will be forced to complicate your company's financial status. Meaning that you would need to use methods like credit lines. And although this type of solution will not increase the costs of your company, it will waste more of your time. On the other hand, you can keep everything streamlines if the founding period is only 1 day.
Besides the Retail POS, a Payment Processor Must Provide You with Integrations That You Need!
A reliable payment processing company will not stop the features of benefits that it provides to the retail POS or the level 3 processing method. It will also provide you with other features. Keep in mind that every company is different. So, not all of them may need the same type of service. But the top payment processor uses integrations as the best solution. So, you will be able to choose and use just the features that your company needs the most. There are 3 parts that any company can improve through the use of this method.
• Marketing integrations. Retail businesses must focus a lot on their marketing efforts if they want to have success. So, the ability to use integrations will help you increase both the quality and quantity of your marketing. And this can raise your company to the next level in an extremely short amount of time. Yet again, there are many different types of integrations, and you should find the partner that offers the types that your company needs the most. For example, you may need an integration that helps you track the activity on your company’s website.
• Increased sales volume. Another type of integration may help you increase the sales volume of your company. There are many sales methods, and you can discover which ones are the best through the use of these integrations. In the end, the return for your investment will be returned from a single feature. And you may even make a profit from this feature alone. And together with the rest of the benefits, it should be impossible for you to pass this opportunity. So, you need to make sure to take this process seriously and find the best possible partner.
• Customer service. And the last part of a company that is very important for a retail business is customer service. Why? Because you need to make sure that all your clients are very satisfied and come back to you if they need the same type of products again. It is easier for your clients to go to your competitors than it is for service-based companies. So, you need to make sure that the level of your customer service is top-notch.
You Can Easily See the Benefits from the Level 3 Processing Method Through the Reporting Feature!
Another essential feature that a payment processor must offer is reporting and analytics. And you will also be able to see the results of the level 3 processing method in detail. There are 2 main benefits that you can expect from this feature:
• Increase the growth rate of the company. The more money is saved, the more you can reinvest in the company and increase its growth rate. So, reporting and analytics features that will help you find out the best methods that you can use to save more money are essential. And together with methods like level 3 payment processing will ensure the fastest growth rate possible.
• Make a better decision with the reports’ information. But the most important function of the reporting and analytics features is the ability to gather information about your company. Why? Because this will allow you to make the best possible decisions for the future of your company. Any company will encounter moments where a wrong or right decision can mean the end or the rise of the company. And most of the time, the deciding factor is the amount and quality of the information that the owner has. For this reason, you should value and expect high quality- reporting features.