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Documentation Index

Fetch the complete documentation index at: https://docs.pagos.ai/llms.txt

Use this file to discover all available pages before exploring further.

Overview of the Opportunities section in Insights
This page includes the following tabs: The Total Estimated Opportunity at the top of the page is the total amount Pagos estimates you could have saved had you taken advantage of enhanced data, network tokenization, and debit routing; this value doesn’t include savings estimated in the Visa CEDP Calculator. Use the Date Range filter to select the time period for all tabs on this page. Click the Export button on a tab to download the displayed data as a CSV.
At this time, you can use the following data filters to view opportunity data for specific segments of your payments data: Processor, Card Brand, Card Type, Payment Method Type, Stored Credential, Issuing Country, and Presentment Currency

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Mastercard Enhanced Data

Some Mastercard payment cards qualify for Level 2 or Level 3 processing, meaning if you collect and pass specific information (e.g. sales tax amount, order number, product description, etc.) when processing transactions with those cards, you’ll face lower interchange rates. In the Mastercard Enhanced Data tab, you’ll find the following data:
  • Estimated Opportunity - The total amount you could have saved, had you passed Level 2 & 3 data with your Mastercard transactions; the graph below demonstrates these estimated savings over time, broken down by their qualification for only Level 2, Level 2 or 3, and only Level 3 savings.
  • Eligible Transactions - The number of Mastercard transactions you processed that were eligible for Level 2 & 3 data.
  • Confidence - Pagos estimates your savings with 55% confidence. This confidence level reflects a key data limitation: we can’t identify how much of your eligible transaction volume actually included enhanced data. Instead, we estimate your savings based on historical data showing the average merchant omits enhanced data on 60–75% of eligible transactions.
Keep in mind the following regarding estimated Mastercard Enhanced Data savings:
  • This tab only displays Mastercard transactions
  • For transactions that qualify for both Level 2 and Level 3 processing, we estimate your opportunity using the expected Level 2 savings amount

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Network Tokenization

Network tokenization is the process through which card brands substitute a cardholder’s primary account number (PAN) and other card details with a secure, unique value known as a network token. There are many benefits to network tokenization, including increased data security, increased approval rates, and improved customer experiences. Some transactions also qualify for lower interchange rates when processed with a network token instead of a PAN; the estimated opportunity in this tab represents the transactions for which these savings exist. In the Network Tokenization tab, you’ll find the following data:
  • Estimated Opportunity - The total amount you could have saved in interchange costs had you processed eligible transactions with network tokens instead of PANs; the graph below demonstrates these estimated savings over time.
  • Eligible Transactions - The number of approved, merchant-initiated card transactions you processed with PANs that could have been processed with network tokens instead.
  • Confidence - Pagos estimates your savings with 90% confidence using average savings values across historical cost data.
Use the Global drop-down to view your savings data for specific markets. At this time, the available markets are Australia, United States, and Japan; Global includes all three of these markets.
Estimated Network Tokenization savings only account for transactions with the following details:
  • Processed through Braintree, Stripe, Adyen, Fiserv, and Chase; these are the only processors who pass a flag with each transaction to identify it as having been made with a network token or PAN
  • Has one of the following stored credential values: recurring, recurring-first, installment, card-on-file-vault, or card-on-file-repeat
  • Made with a Visa, Mastercard, Amex, or Discover card
  • Made in one of the following markets: US, Australia, or Japan

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Debit Routing

As of July 2023, issuing banks in the United States must ensure all card-not-present debit transactions can be processed by at least two non-affiliated networks. This change created more competition among debit networks, leading to them offering reduced interchange rates by up to 30% to merchants who route debit transactions through their networks. In the Debit Routing tab, you’ll find the following data:
  • Estimated Opportunity - The total amount you could have saved had you processed eligible US debit transactions through an alternative debit network; the graph below demonstrates these estimated savings over time, broken down by whether they’re associated with cards issued by Durbin-regulated vs unregulated banks.
  • Eligible Transactions - The number of US debit transactions you could have processed through an alternative debit network.
  • Confidence - Pagos estimates your savings with 65% confidence. This confidence level reflects the following data limitation: we can’t identify exactly how much of that eligible transaction volume you did route to lower cost networks. Instead, we estimate your savings based on historical data showing the average merchant routes half of their eligible volume to alternative debit networks.
Keep in mind the following limitations regarding estimated Debit Routing savings:
  • Currently, Adyen, Braintree, and JP Morgan Chase are the only processors that provides clear indicators when a debit transaction was routed through an alternative network; we exclude those transactions from your estimated savings because we know you’ve already captured the associated savings.
  • For all other processors, we can’t confirm whether or not you’ve used alternative routing—so if you’re already employing a routing strategy with processors other than Adyen, Braintree, and JP Morgan Chase, your actual opportunity may be lower than what’s shown here.
  • We estimate your eligible transaction volume—the count and value of total transactions that qualified for alternative debit routing—based on the BIN tables we receive from the card brands for our BIN Database product; whether processors provide 8-digit BINs or only 6-digit BINs determines how accurate these estimates are.
  • Alternate debit processing eligibility is only available for transactions processed after January 1, 2024

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Visa CEDP Calculator

Visa incentivizes businesses to collect and pass quality enhanced data with transactions through their Commercial Enhanced Data Program (CEDP). Stricter than their prior L2/L3 programs, CEDP introduces a verification-driven approach, whereby merchants can only receive lower interchange rates on commercial transactions once Visa verifies their compliance with new enhanced data requirements. Visa charges a 0.05% CEDP participation fee on every enhanced-data transaction, regardless of whether the transaction qualifies for an interchange reduction. In the Visa CEDP Calculator tab, use the following sliders to estimate your CEDP savings or costs:
  • Participation Rate - Estimate the percentage of your total eligible transactions for which you’re currently submitting enhanced data.
  • Data Quality Rate - Estimate what percentage of enhanced-data transactions you submit that actually meet Visa’s quality standards and would receive the interchange reduction.
The calculator takes the interchange savings from the estimated percentage of qualifying enhanced-data transactions, subtracts the participation fee applied to all transactions, and approximates your savings. Use the sliders to determine how enhanced-data operational changes will impact your overall interchange savings.
The CEDP calculator only demonstrates data for eligible Visa commercial card transactions processed in the United States.