The monthly processing statement arrives, the total is higher than expected, and it gets approved anyway.
For many organizations using Microsoft Dynamics 365 Business Central, payment processing fees become a cost that is accepted rather than examined. But those fees are not always as fixed as they appear. The way transactions are submitted can have a significant impact on the rate a business pays.
Where Payment Processing Costs Come From
Interchange fees make up a large portion of the cost of accepting card payments. For B2B organizations, the rate applied to a commercial card transaction depends in part on the amount and quality of data submitted with the payment.
Card networks use different data levels to classify commercial transactions. Level 1 provides basic transaction information, while enhanced data, such as line-item details, tax amounts, and purchase order numbers, can qualify eligible transactions for lower interchange rates.
For Business Central users, the problem is that this information may already exist in the ERP but never make it to the payment processor.
The result? A commercial card transaction can be processed at a higher rate simply because the payment system did not receive the data needed to qualify for a better one.
Why Transactions Get Downgraded
Payment downgrades can be difficult to spot because processors do not necessarily flag individual transactions when they move to a higher rate. The additional cost can simply appear as part of the monthly processing total.
The rules around enhanced commercial card data are also changing. Visa's Commercial Enhanced Data Program has introduced new requirements, including the retirement of Level 2 data in 2026 and changes around generic placeholder values.
That means businesses that assumed their credit card processing in Business Central was already optimized may need to take another look.
Two Ways to Reduce Processing Fees
There are two practical areas where many Business Central organizations can reduce payment costs.
The first is Level 3 data. By capturing the appropriate transaction information in Business Central and transmitting it to the processor, eligible commercial card transactions can qualify for lower interchange rates.
The second is ACH or eCheck. For suitable B2B payments, moving customers from cards to bank-based payment methods can significantly reduce per-transaction costs. ACH can work particularly well for recurring invoices and larger, predictable balances.
The right approach depends on the customer and transaction. Cards may still make sense when customers value rewards, convenience, or card-based dispute protections.
Start With Your Current Processing Data
Before renegotiating a processing contract, businesses should understand what they are already paying and why.
Ask your processor what percentage of commercial card transactions qualify for Level 3 rates and how many are being downgraded to Level 1. Then look at whether your Business Central payment setup is actually transmitting the data required for qualification.
USTPay has documented cases where businesses reduced their Business Central payment fees by close to 30% after correcting how transaction data was passed to the processor.
The opportunity may not be in finding a completely new processor. It may be in making better use of the payment data already sitting inside your ERP.
Want to dig deeper into where your Business Central payment fees are going? Read the full article, .