Level 3 Payment Processing

Did you know Visa & MasterCard apply  “interchange” surcharges
of roughly 1.5% for commercial & government credit cards processed w/o level 3 payment detail?

If not, don’t worry. Statics show that 3 out of 5 businesses have not been set up to accept B2B and B2G cards properly.

It is regrettable that many businesses are unaware of the advantages that correct processing solutions can present.

Why this is often overlooked

There are 2 components to the fees businesses pay to accept credit cards. The easiest way to explain this that 75% + of the fees businesses pay to accept credit cards goes back to the card issuing bank, Not processors. This is called “Interchange”.

Visa & MasterCard use interchange fees to determine how much businesses pay to accept the varies types of cards.
Do a Google search for Visa or MasterCard Interchange fees to see these for yourself.

For business-to-business (B2B) and business-to-government (B2G) purchases, these interchange fees fall into one of 3 processing categories — Level 1, Level 2, or Level 3. Level 1 has the highest rates. Level 3 has the lowest rates.

What is Level 2 & Level 3?

Level-3 payments require the most data out of the three processing levels. For comparison, Level 2 payments requires:

Transaction amount
Customer code
Sales tax

Level-3 payments require all the data for Level 2 payments, but also requires additional data elements such as:

Item ID or SKU
Unit price

Commodity code
Extended price

Line discount

Item description
Unit of measure (each)

Level 2 and can you as much as .50% on B2B transactions, Level 3, over 1.5%.

The ONLY way to receive either level 2 or level 3 interchange rates is if level 2/3 payment detail is entered on a transaction, otherwise the transactions qualifies at level 1 and and has a higher interchange cost.Have questions about level 3 or want a no obligation level 3 processing rate quote? Give us a call 888 790 3450 

PS: Revolution has specialized payment technology that automatically updates an attaches level 2 and level 3 detail w/o you having to manually enter the additional data required to receive these lower interchange rates.

PPS: Accepting credit cards from businesses clients or government w/o being properly set up with level 3, your losing up to 1.5% of potential revenue that has nothing to do with the rate your processor is charging you.