B2B Payments – From Old School to New Wave

November 7, 2018 | Merchants | Jessyka Lee

When it comes to payment processing, a new wave of technology is taking over the traditional ways of invoicing clients and waiting for your check. Is it because the online options are faster? More convenient? Whatever the reason, merchants nowadays are shifting gears and moving forward into the digital world of online payment processing, also known as e-Commerce.

Business-to-business merchants are shifting gears and increasing their cash flow while saving money on credit card processing fees and better servicing their vendors with their options for accepting B2B payments; namely taking debit and credit cards for products sold and services rendered.

With highly reputable, experienced, and skilled merchant processors who are active in the B2B segment, companies like PayKings, who are properly set up to streamline the ways you accept payments into an easy to add Level 2 and Level 3 data system. Saving in big ways on fees acquired from Visa and Mastercard is not only possible with this technology but can be accomplished with very little effort from the merchant.

PayKings has come across several incidents where wholesale merchants didn’t know anything about Level 2 and 3 data and how much they can save – what’s more is our numerous case studies that show where a merchant saved $20,000+ in fees just by adding Level 2 and 3 data, thus accelerating the payments process with ACH and replacing the days of accepting a physical check.

Same Day ACH

It’s not just high risk payment processors and merchant accounts that are jumping on the same day ACH bandwagon, but banks too – ensuring that they can compete in the market of traditional credit card payment programs as technology propels merchant accounts into the future.

According to NACHA, the National Automated Clearing House Association, an organization that establishes the standards and rules followed by financial institutions for transferring payments – The Electronic Payments Association is the steward of the ACH Network – one of the largest, safest, and most reliable payment systems in the world. The ACH Network creates value and enables innovation by universally connecting all U.S. financial institutions while moving money and information directly from one bank account to another.

A new rule adopted by NACHA will allow for better and more capability when moving money and making ACH payments a much faster process, it will also enable the ACH payment to become a same day processing option. The primary significance in using same-day ACH includes business-to-business payments, enabling faster settlement of invoice payments between trading partners – including remittance information with the payments.

What Exactly is Level 2 and 3 Data for B2B Merchants

When it comes to learning the ins and outs and the core benefits for Level 2 and Level 3 data, it can seem overwhelming. PayKings wants to help you fully recognize why this option could be a great one for the long term success of your business. Simply put, Level 2 and Level 3 data is merely just attaching more data points to the credit card transactions so that the payments become more readily available to wholesalers and B2B merchants.

Essentially, the higher the level of payment processing – the more data points are included. This ends up giving you, the merchant account, better savings on interchange rates. Just to recap – we’re looking at the higher the level, the more data points, and ultimately, the better the savings on interchange rates.

Savings Benefits


The most common merchants to handle larger scale B2B payments, for entities such as government transactions are found among those who utilize Level 3 processing. The use of this type of data, processing at the Level 3, can bring with it serious savings on interchange rates which can include an overall rate of savings coming in at 1% lower than with standard transactions.

For example, say you take a $20,000 sale to a large industrial buyer, using a typical MasterCard interchange schedule – with Level 3 data, that merchant account can net over $200 in interchange savings – a huge savings on a single transaction.

So, what are you waiting for? Team up with PayKings to save you money and get your payments more secure and your transactions processed faster.

November 7, 2018 | Merchants | Jessyka Lee