
Interview with Emilee Tucker
In this episode, William and Emilee Tucker have a conversation about her company, Authentic Leadership Consulting. They help clients get to the root of their communication and their values through growth and awareness in leadship development .They focus on empowering leaders to cultivate and embrace their own authentic leadership style.
How do interchange fees impact your credit card processing bill?
For every payment your business processes by card, your business pays a series of fees. One of these is an interchange fee, which is collected by the payment’s issuing bank. While interchange fees aren’t necessarily flexible on your provider’s side, they are something you can take steps to reduce. In this article, we take a look at interchange fees and how you can optimize your payments to lower the cost of this component.
What fees do you incur on every payment you make?
On each payment you accept, whether it’s in person, over the phone, or online, you pay the following fees:
- Authorization fee, which is collected by the gateway – an encrypted platform that acts as an intermediary during your transaction
- Transaction fee, which is collected by the processor – your merchant services provider
- Assessment fee, which is collected by the card network – such as Mastercard or Visa
- Interchange fees, which are collected by the issuing bank
Ultimately, these fees can amount around 2% of the total of every transaction.
What are interchange fees specifically?
Interchange fees are collected from you – the merchant – by the cardholder’s bank and cover the cost of the risk associated with approving a payment. While these fees are determined by the card brands and are non-negotiable, there are different levels of interchange fees based on key factors, including the information that you submit every time a payment is made. In fact, there are over 300 different interchange rate levels that could be applied to your payment processing.
What impacts your interchange fees?
Your interchange fees are going to be impacted by a variety of factors, not all of which are in your control. However, some decisions that you make, as a merchant, will determine what you’re charged.
Interchange fees can be determined by card type, and which types of cards carry more risk for the bank:
- Debit versus credit
- Corporate versus personal
- Rewards and travel cards
- Card brand
The fees are also determined by the way the card was used during the transaction:
- In person, online, or over the phone
- Inserted with a chip, tapped, or signed for with a cardholder signature
In this example, a cardholder signature would be seen as the least risky transaction, whereas a purchase made with card-not-present (CNP) carries the most risk.
Finally, the fees are also determined by the data sent along with the transaction. The fewer details sent, the higher the fees typically are. This is where your business has room to make decisions that can lower your fees without taking measures to limit your customers, such as reducing the card types you accept.
How do you optimize your interchange fees?
Depending on the nature of your operations, your business can qualify for a lower interchange rate by working with your payment processor to optimize the data you send every time a transaction is made.
Many businesses that accept basic retail transactions, as well as other CNP transactions, will only be able to send what is known as Level 1 (L1) data. However, organizations with larger corporate or governmental clients can often optimize the information they send to secure the best rates.
Standard L1 transaction data includes very basic information, the amount paid, the card number, and the date. However, there are two additional levels; L2 and L3, that include more data and reduce fees. L2 adds data like customer codes and sales tax amounts for a discount around 0.50% lower. L3 data includes details such as product quantity and item descriptions for a discount of up to 1.0% lower. In order to optimize your interchange rates, you must be working under a payment processing structure that allows for the capture of this information.
If you can optimize, you should.
Not every organization is eligible for submitting L2 and L3 three data. Unfortunately, these businesses may face higher merchant services fees than others. Â However, if your business is in the position to optimize your interchange rates, you can expect to save significantly. With payment processing fees eating up a considerable amount of every transaction, you need every advantage that you can get.
Why Being on Time Matters More Than You Think
The dictionary defines punctuality as “the fact of arriving, doing something, or happening at the expected or correct time and not late”. But in the workplace, it means more than that. It says more about you than you realize.
Punctuality and Professional Image
Being punctual reflects discipline, responsibility, and respect for others’ time. It shows commitment not just to the task, but to the team and the company you are in. When you arrive on time, you signal that you value your colleagues’ time and the collective work. On the other hand, frequent lateness can give the impression of a lack of commitment and disrupt working dynamics.
Why Punctuality Matters?
Punctuality goes beyond just meeting a schedule. It shows reliability and a strong work ethic. While being punctual can set a positive tone for the day and build trust, tardiness can harm productivity, affect morale, and damage your professional relationships.
This is especially true for managers and leaders, as they must set the example for others. When a leader arrives late or doesn’t prioritize punctuality, it sends a message to the team that being on time isn’t that important. Leaders who model punctuality foster a culture of respect and professionalism, creating an environment where everyone understands the value of time.
The Risk of Appearing Tardy to Clients
Being tardy carries many risks, and appearing late to clients goes beyond a minor inconvenience. When a client is waiting for you, they trust that you value their time and are committed to the meeting. Arriving late, even by a few minutes, not only undermines that trust and damages your personal reputation, but it can also reflect poorly on the company as a whole, potentially jeopardizing deals or future opportunities. Punctuality demonstrates respect, reliability, and professionalism, all of which are essential for maintaining strong client relationships.
Tips for Improving Punctuality
Improving punctuality can be simple:
- Plan ahead: Prepare for the next day in advance.
- Use reminders: Leverage apps to track appointments or simply add more alarms to your list.
- Create a routine: A consistent morning routine can save you time.
Conclusion
Being on time is a simple way to show you’re professional. It means you respect your coworkers and care about your team. When you make punctuality a habit, people will see you as reliable and committed. Try waking up a bit earlier, you’ll be glad you did!
Interview with Pascal Haab
In this episode, William and Pascal Haab have a conversation about his company, System Crew. They are a reliable and self-motivating tech outsource partner – they take an iterative approach to enhance client’s IT infrastructure, working with them to design, improve, and implement solutions.