Did You Know? Avoid the cost of downgraded cards

Did you know that a downgraded card can increase your cost by nearly 40%?

It can! 

Let’s say a $100 purchase with a Visa Signature Preferred costs you $2.20 (2.20% of the sale). If that card downgrades, the transaction cost increases to $3.05! (3.05% of the sale). That’s a 38% increase.

And, most of the time, that additional expense is totally avoidable.

Downgrades are a penalty for exposing all parties involved with the sale (merchant, cardholder, and card processor) to a greater risk of fraud.

While some downgrades are unavoidable, you can often save money and reduce the risk of downgrades by taking a few simple steps.  

• Card-present transactions. Close the batch at the end of each business day. Don’t key-in card data: Swipe mag cards and insert chip cards. 
• Card-not-present transactions. Verify the ZIP code and CVV.

Rhiannon Leonard leads Gravity’s vendor communications program. She writes frequently on payment processing topics.