Level 1, Level 2 and Level 3 Transaction Data, and why its important if you accept business-2-business (B2B) or business-2-government (B2G) credit cards.
To understand why you should be including level 3 transaction data on your b2b and b2g transactions, you only need to look at the different interchange rates for these transactions also, something unique to commercial cards, is they qualify 1 of 3 different interchange rates before your processor adds their fee.
This different rates are based on additional transaction data, you enter with the transaction. I cover this in a previous blog, but level 3 processing was initially created to help the government management spending. Visa and MasterCard created special interchange rates to encourage vendors to enter level 3 transaction data. These lower fees, could in some cases lower interchange by 1%-1.5%. That being said, non government commercial cards are eligible for level 3 interchange rates.
Very basic payment detail
Level 1 information with tax and customer code (terminals can support level 2 interchange rates)
Detailed level 3 transaction detail aka line item detail. (terminals do not support level 3 data) for example, Level 3 transaction data is information you would generally find on an invoice which is included with the payment file. The chart below shows the varies processing levels. Only transactions including level 3 transaction data are eligible for level 3 interchange rates.
Below are the data-fields required with your transactions in order to qualify for level 3 & level 3 processing interchange rates.
|Level 1||Level 2||Level 3|
|Basic Transaction Data||+||+||+|
|Merchant Postal/Zip Code||+||+|
|Merchant Tax ID||+|
|Shipper’s Postal/Zip Code||+|
|Destination Postal/Zip Code||+|
|Product Code (SKU)||+|
|Unit of Measure||+|
Have questions about level 3 processing or the savings including Level 3 Transaction Data with your commercial cards would impact your bottom line? Give us a call 888 790 3450