Level III Credit Card Transactions

Level 3 processing is utilized in B2B and B2G transactions to help secure lower interchange rates and monitor spending. It involves the input of additional data through extra line-item details outlining the nature of each transaction for both the business and credit card companies.

This additional data is reported back to Visa and Mastercard, allowing businesses to keep track of, receive applicable sales tax detail, and set restrictions on purchases made with a company credit card. This allows any business to better stay on top of their spending, ensuring that their funds are best utilized to further their operations.

Level 3 Data

If you’re processing in a B2B industry or if you accept a lot of Government cards, then having Level 3 data acceptance can help reduce your interchange costs significantly. Often times, Level 3 interchange rates are up to a full 1.00% lower than their standard counterparts. But, in order to gain access to Level 3 data, you’ll be required to input a fair amount of information on each transaction. Additionally, only certain gateways can accommodate for Level 3 data. Level 3 support will automatically populate all fields required for Level 2 (see below), plus the following:

• Ship-From Zip Code
• Destination Zip Code
• Invoice Number
• Order Number
• Item Product Code
• Item Commodity Code
• Item Description
• Item Quantity
• Item Unit of Measure
• Item Extended Amount
• Freight Amount
• Duty Amount

Level 2 Data Processing

Level 2 credit card processing is similar to Level 3 processing, but with less requirements. Just like with Level 3 data, merchants are required to input additional data fields – but typically, the required fields are easier to enter and there are fewer fields to deal with. Level 2 processing still provides a rate reduction, but not quite as much as level 3 processing.

if you’re a B2B merchant processing large orders, it’s definitely worth your while to input Level 2 data. In order to qualify for Level 2 data, you’ll be required to input the following data fields with each transaction:

• Tax Amount (Between 0.1% and 31% of the total amount)
• Transaction Date
• Customer Code or PO number
• Merchant Zip Code

There are card payment solutions that automate the process of collecting and sending level 2 and Level 3 data – meaning you can start taking advantage of substantial savings as you accept and process B2B credit card payments. By working with an intelligent B2B platform like eTreem your organization can minimize the cost of processing credit cards and realize savings in your bottom line. Contact us to find out how.