Commercial Card Level 3 Processing

Commercial card level 3 processing

If your business provides services and goods to other businesses or government, I would encourage you to look into commercial card level 3 processing.

Commercial card level 3 processing optimizes the interchange rates when accepting commercial, business, purchasing, fleet and government credit cards.


What is Commercial Card Level 3 Processing?

Level 3 credit card processing requires you provide specific line item detail related to sale. Providing level 3 detail can lower your interchange cost by as much as 40%.

  • Item descriptions
  • Commodity codes
  • Product codes
  • Business info.
  • Tax amounts/certain tax-exempt transactions are still eligible
  • Quantities and units

Level 3 processing requires specialized software or gateway capable of capturing the additional level 3 requirements. Credit card terminals do not support level 3 processing. (ask us about our new interchange optimization service, receive level 3 processing for terminal transactions)

Why are all these fields required?

Level 3 processing was initially created for government P cards. The government was trying to reconcile spending, so Visa and MasterCard created special interchange rates as a way to encourage vendors to enter this level 3 detail. This line item data showed up on the governments bank statement, allowing them to easily reconcile charges.

Today, its not only government but commercial, purchase cards, MasterCard business cards and Fleet cards that are eligible to qualify for these reduced interchange rates.


Is Level 3 Credit Card Processing for you?

It really depends on the percentage of your sates that come from business or government. If you primary accept consumer cards, this is not for you however, if you do accept credit cards from other businesses or government, I would strongly encourage you to see how  much commercial level 3 processing can save your company.


Commercial cards accepted without level 3 detail cost anywhere from .80%-1.5% more in interchange fees, regardless of the rate your processor is charging you.


Questions? Give us a call 888 790 3450

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