What is Level 3 Credit Card Processing?

Feb 2, 2023

Level 3 credit card processing is probably one of the best-kept secrets of the credit card processing industry for customers performing Business to Business (B2B) or Business to Government (B2G) transactions.

Simply put, Level 3 payment processing is an advanced form of credit card processing that allows businesses to present specialized B2B credit card transactions in a manner that qualifies for lower interchange rates

Beginning in 2018, both Visa and Mastercard initiated this program with a focus on reducing the cost on accepting B2B and B2G corporate purchasing cards.  To qualify for this lower transaction charge, businesses are required to provide more line-item detail accompanying the card payment. Level 3 requires the most line-item detail by asking for 11-13 points of data.  Following illustrates the data required for each level:

By providing these extra data points the card networks deem these transactions less risky and less likely to be fraudulent than a Level 1 or Level 2 transaction. This results in a lower base cost per costumer transaction, and certain business savings in accepting B2B credit card payments

How does this help me save with Level 3?

While this looks like a lot of required line items, there are card payment solutions that automate the process of collecting and sending level 3 data – meaning you can start taking advantage of substantial savings as you accept and process B2B card payments. By working with an intelligent B2B platform like eTreem you can set your company up to minimize your cost of processing credit cards and take advantage of Level 3.
Contact us to find out how

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