Understanding How Amex Optblue Helps Businesses Grow

When trying to grow a business there are bound to be a few obstacles in the way. For some is the fact that they might not know what level 3 processing is and if they really need it. For others, it might be the fact that they are confused about the Amex OptBlue option and don’t know if it’s for them. Any business owner should do some serious research before making any major decision and there are a lot of sites and articles on the internet alone that can help them get a better picture of where his business can end up if he makes the right moves. 

What Is Level 3 Processing?

In order for a payment to go through, several processes that involve sensitive financial data have to be done. This means that customer and business data is bundled up and transmitted to third party operators in order for it to be evaluated and processed. But in order to do so in an efficient fashion, several levels of data processing have been developed. They have been defined by the amount of data collected, ranging from level 1 to level 3. Also, the amount of data collected depends on the volume of transactions the business makes. This is why not every business might need, or even meet the standards of, the highest level of data processing.

The highest level of data processing is level 3 processing. This is usually required for businesses that do a lot of B2B and B2G transactions. This level was introduced in order to prevent excess governmental spending. Over the years the service has become available to many private businesses and card issuers have begun implementing it as a part of their services offer. Many issuers, such as Visa and MasterCard, now offer special level 3 processing fee and charge deductions for companies that deal in big transaction volumes.

Although obtaining this level of data processing might seem a bit hard for some businesses, for others even quite excessive, there are a lot of merchants that have seen the possibilities of reducing interchange fees and charges and so increasing their overall revenue. This is the main reason so many merchants aspire to this level of data processing. Also, there is the fraud prevention factor. With more data collected, both merchants and clients are more protected against any kind of fraud or slip-ups that may appear in the payment process. The merchant can also better track his transactions and understand where his money is coming from and where is it going. 

How Hard Is It to Qualify for Level 3 Processing Status?

Level 3 processing status, although available for technically any business, isn’t as easy to qualify for as it may seem. Firstly, there is the matter of transaction volume. The more transactions you make as a business, the more likely it is for you to qualify. That is why this level is usually reserved for companies that do a lot of B2B business. It is equally important how large the transactions you make are. Even if you don’t have a lot of transactions, but have high value one, you might be interested in the fees reduction offered by the highest level of data processing.

Another important factor when it comes to qualifying for level 3 processing status is the credit cards you accept. Although most of the issuers offer this level of data processing, not all of them have the same criteria when it comes to offering this status. For instance, MasterCard and Visa have different ways of calculating the fee and charge reduction for each transaction, while Amex only offers this level of data processing to those businesses that operate in the United States. This is a form of creating exclusivity as well as protecting the cardholders from any kind of third party data leaks.

Although it may seem like hard work for a merchant to qualify for level 3 data processing, it really only depends on how you want your business to grow. The collecting of information is made easy by implementing a tokenization system that allows the merchant to collect the necessary information using smart tech solutions. Also, the set-up of these terminals is quite easy, as many payment organizations are compatible with processing platforms.

How Can Amex Optblue Help a Business Grow?

For a very long time businesses wanting to accept American Express cards needed to have a separate American Express account and even had to pay additional fees in order to process Amex payments. That was because American Express has its own way of issuing card to clients that involve a closed-loop system. Basically, this means that the cards aren’t linked to any kind of third party bank and the clients account is opened directly with Amex. This made a lot of businesses stop accepting American Express cards and the cardholders were left with very few alternatives. That is until Amex OptBlue was invented. 

The Amex OptBlue solution is modeled after Visa and MasterCard. This means that OptBlue is a program developed by American Express that allows smaller businesses to accept American Express cards without having to pay any additional fees for processing data. This made it easier for both clients and merchants to do business using their preferred method of payment and data processing. And the more clients were able to pay using American Express, the more business the merchant could do. 

Why Should You Choose Amex Optblue?

If you have a small business and you want to grow it, it is very important that you accept as many forms of payment as possible, without having increasing your costs with data processing. This is why Amex OptBlue is a very good choice for a merchant. It enables him to better engage with his potential clients using the same data processors as he would for Visa or MasterCard users. 

Also, registration for the OptBlue program is fairly simple. Their website offers all the information you need in order to be able to become an Amex accepting business. The rates are affordable and the fact that you can advertise your business as one that accepts American Express means that you can link your name to a well-known American financial institution.