What is Level 3 Line item detail?
Level 3 processing is designed for commercial transactions and requires the capture of (level 3 line item detail) specific line item data that defines information about a sale, how it takes place and by who. Level 3 line item detail can equate to more than 11 data fields and includes; description of the product, quantity, PO#, unit-of-measure, and sales tax information when applicable.
MasterCard & Visa use “interchange rates” to determine how much you pay to accept a credit card. 100% of the interchange fees collected are paid to the card issuer, not your processor. Interchange can amount to 75%-90% of your total expense.
Commercial and government transactions fall into one of three interchange categories, level 1, 2 or level 3. The different interchange tiers depend on whether or not level 3 line item detail is entered, and can cost you anywhere from 80 basis points to 1.5% more. These tiers depend on whether level 3 detail is entered, if not, the transaction clears at a different interchange rate and can vary in interchange by 80 basis points to 1.5%
At the time of this blog, accepting a Visa commercial card without Level 3 line item detail costs you 80 basis points more in interchange before your processor adds their fee.
What Cards are Eligible for Level 3 Processing?
MasterCard business along with Visas & MC commercial, purchase, GSA and Fleet cards. However, you will also need a virtual terminal capable of the Level 3 line item detail credit card terminals wont cut it. They dont support the additional line item detail requirements. Many companies are using equipment that is outdated along with bad practices when accepting commercial cards, resulting in unnecessary interchange processing fees.
Stop Leaving Money On The Table!
With greater and greater utilization of commercial cards, it is now of even of greater importance to properly manage your account and make sure your company is processing in the most economical manner. You may have a low rate and your processor may honestly be trying to do a great job, however, accepting commercial cards without level 3 detail and your losing 1% of revenue on every transaction
Both Visa and MasterCard apply higher interchange rates for transactions accepted without level 3 payment detail.
How much will level 3 processing save you?
Find out by giving us a call @ 888 790 3450 or email a recent statement to [email protected]