What is Level 3 processing?
Level 3 processing is a more sophisticated way of accepting commercial, business, purchase & government cards that allows companies accepting credit cards from other businesses or government to lower transaction (interchange) cost by 30%-40%. Key word is interchange. 100% of interchange goes back to the bank the issued your customers credit card and is different from the rate your processor is charging.
Level 3 Data is additional information about a transaction which is commonly found on an invoice, such as product/service descriptions, quantities and other details.
Visa® and MasterCard® apply higher Interchange rates for business, corporate, purchasing and GSA transactions if Level 3 Data is not included with the transaction.
What does this mean? Accepting commercial, b2b or government p cards without level 3 payment detail, you will always pay about 1% more (interchange fees) than the best rate you can receive from a processor.
Quote from the GSA Site:
MasterCard and Visa have created special rates to support Purchase Card programs reducing the merchant transaction costs (Interchange) if Level-3 line item detail information is transmitted with the card payment file. By providing Level-3 data, a supplier may reduce their (interchange) credit card processing fees – often by 30% to 40%
Level 3 processing is no longer, only for government transactions but non government b2b and commercial credit card transactions.
Revolution Payments developed technology that automates this and helps businesses meet these requirements resulting in qualifying for MasterCard and Visa’s lower rates, without having to manually enter the 7-13 additional fields otherwise required to receive level 3 interchange rates.
These reduced rates are passed on you, dramatically lowering your fees and saving many cases as much as 1%-1.5% on processing fees.
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Expect to see a 30%-40% reduction on B2B & Government Transactions
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