The card processing companies charge different rates based on how they got the card info. The more information provided with the transaction the lower the rate.
For instance, you can process a payment based only off the number. But the processing companies will charge a higher percentage because of the risk of using someone else’s card.
Providing the full information found all over the card(front back) significantly reduces the risk that the card is being used fraudulently. So the processors will charge a lower rate.
These rates are not all that different, but 0.1% makes a big difference across thousands of transactions.
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