CHRIS: And this is what customers want. You know, they want a convenient, easy-to-access resource so that they can execute on the piece of the transaction they need to execute on, and they can provide you with information without having to interact with somebody.
Don't get me wrong, a lot of customers love interacting, but at the end of the day, if they need something done, they don't want to wait for a human being. They want to be able to go in, log in securely, know that they can trust that this is a secure resource, and that they can self-service.
RON: That's funny you mentioned that. It reminded me of something you said. That's a real big benefit for the end-user. And I agree because it allows them—I can keep my name, my phone number, my email, my address, I can keep everything up to date, my card, and that all gets pushed to the ERP portal. So the data accuracy for the accountants at the business is tremendous.
So, what it reminded me of is the benefit for the business is there's a thing called PCI-level three data, and most people don't know what that is. But basically what it means is when you sign up—let's say I'm a business and I sign up with authorized dot net to take credit card payments online for most of the time they are going to take between, let's say, 2.5 and 3% of every transaction. I mean, that's typically what we're seeing on these standard rates. However, there are some of these larger providers: CardConnect, First Data, PayTrace, Heartland, right? You've got these bigger providers that are also the payment hub gateway.
Because they're both the merchant account and the gateway, they can charge lower rates. What they are discounted rates for business-to-business eCommerce transactions. So let's say, for example, if I went on your website and I paid for something and my wallet, I have two cards. Remember the ones I said a minute, ago, runs Visa and I had the Clarity corporate card. If I pay with Ron's Visa and it goes through the credit card merchant account, they should charge roughly, let's say on average, 2.7% for that transaction.
However, if I would have paid with the Clarity corporate card, if I put the level three data together and send that to the merchant, the merchant drops a full point off that and only charges the company 1.7%. [That's] on every transaction. Now the key here is the data. So this data accuracy is not just keeping contact information up to date, it's having all the information about the company we're doing business with. So if Ron decides to pay with the company card instead of sending the credit card company six pieces of data, I need to send 26 pieces of data. But if I have those 26 pieces of data, it can qualify for what they call level three PCI rates, which drops to below 2%. And I can save a ton of money on my credit card rate.
So data accuracy is a lot more important than just simply making sure we have phone numbers and email addresses up to date, right?
CHRIS: Yeah, that's a really good point. Just so I understand, what you're saying is, if we're processing $100 million a year in revenue through our payment provider or eCommerce payment gateway, and we switch to a level three compliance for the data, it's possible that we can save around $1,000,000 a year.
RON: That's exactly right.