If you accept government purchase cards, it  may be worth investigating a level-3 data capable software provider. Visa and MasterCard created special interchange rates to support purchase/commercial card program by reducing the transaction cost (interchange) if Level 3 line item detail is provided with the transaction.  By providing Level 3 data, a supplier can reduce credit card processing fees by 30%-40%.

What is level 3 detail?

Its transactional data that gives more detail about a transaction.  If defines the who, what and where of a transaction.  The chart below shows the level 3 requirements.

Data Element
Merchant Name
Transaction Amount
Transaction Date
Customer Code
Ship From Postal Code
Destination Postal Code
invoice Number
Order Number
Freight Amount
Line Item Detail of Purchase

Commercial and Purchase cards qualify at 1 of 3 different interchange rates. Level 1, Level 2 or Level 3.  The different levels are based on what information you include with these cards. Accepting a commercial card without level 3 detail, you pay roughly  1% more (interchange) before your processor ads their fee.  I strongly encourage finding a Level-3 Data Capable Software Provider

The fees associated with accepting credit cards are a part of doing business, but it is possible to reduce the impact of these cost through level 3 processing.

Example #1, Visa Interchange Exercise:

Cost for a $5000 Visa transaction without Level 3 Data: $139 or 2.78%
Cost for a $5000 Visa transaction with Level 3 Data: $99 or 1.98%
Cost for a $3000 Visa transaction without Level 3 Data: $99 or 3.30%
Cost for a $3000 Visa transaction with Level 3 Data: $75 or 2.50%

Example #2, MasterCard Interchange Exercise:

Cost for a $5000 MasterCard transaction without Level 3 Data: $147.50, or 2.95%
Cost for a $5000 MasterCard transaction with Level 3 Data: $102.50, or 2.05%
Cost for a $3000 MasterCard transaction without Level 3 Data: $88.60, or 2.95%
Cost for a $3000 MasterCard transaction with Level 3 Data: 77.58%, or 2.58%

If you need a Level-3 Data Capable Software Provider, have questions, or would like a free level 3 analysis, we would love to hear from you.

Give us a call at 888 790 3450 or email [email protected] revolution-payments.com

 

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