Level 3 processing data is additional line-item detail that is entered when processing a commercial or government credit card. Visa and MasterCard created special interchange rates to entice merchants to provide Level 3 processing data.
By providing level 3 data a business can lower the cost of accepting a B2B or B2G card by 1%-1.5% depending on the type of card and size of the ticket.
Even with its advantages level 3 processing is often overlooked. This could happen for many reasons.
- A payment professionals’ failure to explain and identify his client could benefit from Level 3 processing.
- The business owner is unaware of the benefits and savings level 3 processing would provide.
- The business is using equipment or software that does not support the additional line item detail Visa and MasterCard require for these transactions.
- Level 3 processing is complicated and requires so much additional information.
What exactly is required to receive level 3 data interchange rates.
Commercial cards fall into one of three different interchange categories. Level 1, level 2 and level 3. The only difference between these different tiers is the amount of information provided with the sale.
I see so much false information about level 3 processing. You need to process a certain amount of volume to qualify for level 3 processing. Level 3 processing only applies to government cards, level 3 processing is complicated and requires so much additional information.
These are all false. It does not matter your processing volume. All commercial cards are eligible regardless of your processing volume. The only area where volume comes into play is high ticket interchange rates. Transactions above certain thresholds qualify for savings up and above level 3 data interchange rates however, level 3 payment detail is required.
Other than this, volume does not matter.
Level 3 processing is not complicated. It’s a few additional line item details entered when processing a payment. Well worth the time to lower your interchange costs by 30%-40%
Some processors, Revolution Payments being one of them provides payment gateways that not only support level 3 detail but can automate the entire process.
Our solution will identify the cards you accept, automatically populate, and attach level 3 data without you lifting a finger. We have a powerful commercial card optimization service that runs behind the scenes that will allow your credit card terminal transactions to qualify for level 3 interchange rates. Give us a call for details.
The graph below shows the different interchange tiers and requirements for level 3 processing.
Any questions or if you would like a no obligation level 3 data review and analysis, we would love to hear from you.
888 790 3450 We have been helping clients receive level 3 interchange rates for almost 20 years.