What is Level 2 and Level 3 processing?
Level 2 and Level 3 Processing
Monitor and Track Your Spending with Lower Interchange Rates
Card Restrictions
Set company credit card restrictions
Lower Interchange Rates
Lower interchange rates for Visa and Mastercard transactions
Monitor Spending
Track and monitor spending better
Level 2 and Level 3 Credit Card Processing
By gathering a set of additional line-item details, Level 3 Processing is utilized in B2B and B2G transactions to assist large organizations in monitoring and tracking their spending. This highest layer of processing offers much cheaper interchange fees for Visa and Mastercard transactions by utilizing that additional data.
Additional line-item information that further describes transactions for the business and credit card firms requires the submission of this additional data. By reporting this additional information to Visa and Mastercard, businesses are able to maintain and track purchases made using company credit cards, receive information about the appropriate sales tax, and impose limitations.
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Information Needed to Process Level 3 Transactions
The majority of retailers will never be able to accept Level 3 cards, however if you process in a B2B-heavy sector or if you accept a lot of government cards, having Level 3 data acceptance might dramatically lower your interchange costs. Level 3 interchange rates are frequently up to 1.00% less expensive than their normal counterparts!
Zip Codes
Both the ship from and destination zip codes.
Invoice and Order Numbers
Both the invoice and order numbers for the transaction.
Freight Amount & Duty Amount
The freight and duty amounts need to be included.
Item Unit of Measure and Extended Amount
Items that have measurements and extended amounts should have the information included.
Item Product Code, Commodity Code, and Description
Descriptive product information such as product code, commodity code, and description.
Information Needed to Process Level 2 Transactions
Similar to Level 3 processing, Level 2 credit card processing offers many merchant benefits but with fewer criteria. Merchants must still submit extra data fields; however, unlike Level 3 data, these additional fields are often quicker to fill and fewer in number.
Although level 2 processing doesn't nearly offer as much rate reduction as level 3 processing, it still provides many of the benefits. The average interchange reductions are about 0.50 percent less than usual sales!
Merchant Name & Zip Code
The name of the merchant and their zip code should be included.
Transaction Amount & Date
The transaction amount should be included along with the date.
Tax Amount
Between 0.1% and 31% of the total amount.
Customer Code
Include the customer code or PO number.
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