Account Optimization

All too often account optimization and account set-up are not at the forefront of a merchant’s onboarding strategy.

Achieving the best rates requires a combination of each of the following:

Account Configuration:  A Merchant Category Code (MCC) is assigned to every merchant account.  One way this code is used is to assign the applicable pass-through rates known as Interchange.  If this code is improperly setup it may result in higher Interchange rates than are appropriate for the type of business.

Solution Configuration:  Providing a solution that captures the required data elements is critical to achieving the best rates.  The card associations require specific data to accompany transactions to achieve the best pass-through Interchange rates.  If card present data, address verification, card verification code or important configuration data is absent transactions may clear at higher Interchange pass-through rates.  It is important to configure payment solutions to prompt for this data or require this data.  Also, adding enhanced data to commercial cards through the payment solution will likely reduce Interchange pass-through rates.

Merchant Training:  Proper payment solution training is critical to achieving the best pass-through Interchange rates.  Merchants should be trained on the importance of processing the card as card present whenever possible including enhanced data for commercial cards.  Card not present transactions should include address verification as well as enhanced data for commercial cards.

Monitoring:  It is important for the merchant to be educated on how to monitor their transaction Interchange qualification to identify areas of concern on their daily online reporting or monthly processing statement.  This allows the merchant to quickly identify inefficiencies that can then be addressed in order to improve their bottom line.

To learn how NACCA can customize a program to fit your company needs, contact a representative today at 800-258-8472.