Benefits of Level-3 Processing

What benefits can you expect from including level 3 line item detail with your commercial transactions?

#1 Benefit is lower transaction cost.  The difference between processing Level-3 detail and not can be as high  as 1%-1.5%.  This is on interchange costs alone, before processors add their processing markup.

This is a savings that can NOT be achieved by a processor simply lowering your rate.  Commercial cards have tiered interchange rates based on the level 3 data

transmitted with the payment file

Lets look at the interchange rates on Visa’s site. If you have cost and 25 basis points. Your either going to pay 1.85% + 25 basis points, or 2.5-2.65% + 25 basis points.

Either is still cost + 25 basis points, but interchange changes based on whether or not level 3 processing– line item detail is included with the transaction.

• Commercial Level III 1.85% + $0.10
• Commercial Level II 2.05% + $0.10
• Commercial Card Present 2.50% + $0.10
• Commercial Card Not Present 2.65% + $0.10
• Commercial Travel Service 2.55% + $0.10
• Commercial Standard Interchange Reimbursement Fee 2.95% + $0.10