How you can lower your processing rates with level-2 and level-3 processing
You probably already know that whenever you take a credit card you must pay an interchange fee on that card, everybody does.
These interchange fees can amount to more than 80% of your total expense and goes back to the bank that issued your customer’s card. Not to your processor.
To complicate this even more, commercial cards fall into 1 of 3 different interchange rates.
Level 1, Level 2 and Level 3.
The processing levels are related to how much information you collect about your customer when you process their payment. You can significantly lower your processing rates with level-2 and level-3 processing
All companies process Level 1 by default, meaning it contains the basic payment info. Card number, expiration, billing address, zip code and amount.
The card processing level your business uses is related to how much information you collect about a customer when you charge them. By default, companies process at
Level 1 which means that each transaction includes the card number, card expiration, billing address, and zip
Level 2 captures a little more data. Level 1 payment info along with a PO# and Tax amount. To qualify a tax amount between 1%-22% must be entered.
Level 3 detail includes level 1, level 2 detail along with line item detail. (level 3 processing can save you up to 1.5% depending on the size of the ticket and type of card.
- 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
If you accept credit cards from businesses or government and do not enter level 3 detail, you are leaving a large chunk of revenue on the table. We automatically populate the necessary data for your business with no upfront cost. This significantly lowers the interchange fee you pay to accept commercial, business or government cards.
Have questions about how to lower your processing rates with level-2 and level-3 processing , or would like a no obligation savings analysis?