Payment cards, or credit cards and debit cards, are the most commonly used payment method in America. Eighty percent of people use debit or credit cards for every day purchases, while only 14 percent use cash. Every year, cash is becoming less relevant as payment cards and contactless payment methods dominate the market. There are four major card brands used in America – Visa, MasterCard, Discover, and American Express. In addition, each card brand supports a variety of unique card features among their various card types.
Payment Cards Accepted By Gravity Payments
Gravity Payments has the ability to enable businesses to accept all Visa, MasterCard, Discover, and American Express whether it’s online, in-store, over the phone, mail, or thru a mobile device. We have the ability to enable EMV chip card acceptance, and contactless payment such as Apple Pay, Samsung Pay, Android Pay, and all other forms of NFC payments.
How do the different payment cards affect credit card processing?
Reward, Cash Back, and Perk Credit Cards
Every card brand offers a variety of cards to their customers. Some offer no rewards, some offer cash back, and others offer points towards airlines or other products. One of the ways the card brands afford to offer these rewards is by charging the merchants who accept these cards.
Simply, if you are at dinner and use a credit card that earns cash back or air miles to pay for your meal, it will be more costly for the business to accept that payment type. This is often just considered part of the cost of doing business. Often, this becomes the biggest concern to business owners when they enter into a tiered pricing structure for credit card processing. In a tiered system, each type of card qualifies at a certain cost to the merchant.
For more on interchange rates and card fees, click here.
Business, Corporate, and Government Credit Cards
Some card types accepted by businesses can be less costly when accepted in a specific way. Accepting business, corporate, and government credit cards can result in a lower wholesale or (interchange) cost if certain additional information is gained while accepting the payment. This information could be anything from invoice numbers, ship from postal code, zip code, etc. This is called Level 2 or Level 3 processing.
For more information on Level 2 processing, click here.
For more information on Level 3 processing, click here.