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Level 3 Payment Processing

Add 1% to your bottom line without increasing sales

Commercial card transactions fall into one of three interchange categories: Level 1, Level 2 and Level 3. With Level 1 having the highest rates and Level 3 having the lowest.

By qualifying your business, corporate, and purchasing credit card transactions at Level 3, you can reduce their interchange rates by up to 1%. This will help your business save thousands of dollars in processing fees annually.

Level 3 Processing provides enhanced transaction reporting which is a requirement for most government contracts. This enhanced reporting will make the reconciliation process a lot faster for both your business and your clients business.

Level 1 Processing

Level 1 processing refers to business-to-consumer (B2C) transactions, during which consumers use their personal credit or debit cards to make both small and large purchases.

Data required for a Level 1 transaction:

  • Merchant Name
  • Transactions Amount
  • Date

Level 2 Processing

Level 2 processing refers to a more detailed transaction between two businesses, commonly referred to as B2B payment processing. Many businesses and government agencies require specific payment methods, giving them the ability to monitor and control employee spending.

Additional data required for a Level 2 transaction:

  • Tax amount
  • Customer code
  • Merchant postal code
  • Tax identification
  • Merchant minority code
  • Merchant State code

Level 3 Processing

Level 3 processing requires the most detailed data, and these transactions are often made with business and purchasing credit cards. By providing this additional data at the time of the sale, Visa and MasterCard offer substantially lower interchange rates on these transactions.

Additional data required for a Level 3 transaction:

  • Product Codes
  • Item Descriptions and Quantities
  • Item tax rate
  • Freight amount
  • Destination postal code
  • Destination country code

Level 3 Interchange Rates

Card Type Visa MasterCard
Corporate 1.90% n/a
Business L1 n/a 1.90%
Business L2 n/a 2.05%
Business L3 n/a 2.10%
Business L4 n/a 2.20%
Purchasing 1.90% 1.90%

How To Quickly Process Level 3 Transactions

At first glance, it might appear that Level 3 Processing would be very time-consuming. However, with our service that is not the case.

We offer a customized virtual terminal that can process Level 3 transactions in the same amount of time that it takes to process a standard credit card transaction.

Our virtual terminal will auto-fill the required Level 3 data, allowing your business to receive the substantial savings that Level 3 Processing provides, without doing any additional work. We can setup the virtual terminal to process both keyed-in and retail transactions.

Here are some highlights of our Level 3 virtual terminal:

  • Automatically alerts users when a transaction qualifies for Level 3
  • Automatically populates the required Level 3 data
  • Recurring billing options
  • Can be setup to process both Retail and MO/TO transactions
  • Create customer profiles which can securely store card holder data
  • 100% Web-based -- No downloading of software
  • No Setup Fees
  • 24/7 Live Technical Support
  • Enhanced Reporting Tools

Contact Us to Learn More