When that enhanced data is present and passes correctly, interchange fees can be significantly lower, which makes a big difference for companies handling a high volume of commercial or government card payments.

Level 3 was introduced more than 20 years ago when Visa and Mastercard created special interchange programs to encourage government vendors to enter more detailed information when accepting purchase cards (P-Cards).

If the extra fields were included—things like purchase order number, invoice number, product description, freight, and duty—the transaction could qualify for interchange rates that were often 30–40% lower than a standard card sale.

Over time, this evolved into what we now refer to as Level 3 “transactional data”: essentially an electronic invoice with full line-item detail. It shows what was purchased, who made the purchase, and the context around the transaction. That data is attached to the payment record and sent to the issuing bank along with the authorization and settlement information.

What Level 3 Line-Item Data Typically Includes

Level 3 transactions generally include:

• Product description, quantity, unit of measure, unit price, and any discounts
• Sales tax details, where applicable
• Merchant location / establishment information
• Cardholder information and purchase order or reference numbers
• Shipping, freight, and duty amounts

Originally, this level of transparency was designed to support taxpayer oversight on government spending. Today, the same structure benefits any business accepting commercial, corporate, purchasing, fleet, or government cards.

Level 1 vs. Level 2 vs. Level 3 – What Actually Changes

At a basic level (Level 1), a transaction carries only core information:

• Merchant name
• Transaction amount
• Transaction date

Level 2 adds a bit more structure, such as:

• Customer code
• Tax amount
• Invoice or order number
• Level 3 goes much further and adds full line-item detail:
• Individual product or service lines
• Quantities, units, extended amounts
• Freight, duty, shipping, and other charges

As you move from Level 1 to Level 3, you’re essentially moving from a simple receipt to a complete invoice embedded inside the transaction.

Which Cards Can Qualify for Level 3

Level 3 processing applies to specific card types, including:

• Purchasing cards
• Corporate and business cards
• Fleet cards
• Government spending accounts
• GSA SmartPay cards

Card brands continue to adjust how these programs are structured. For example, Visa is phasing out some Level 2 options for certain business cards and pushing those transactions to qualify at Level 3 when the required data is present.

How Businesses Qualify for Level 3 Rates

To qualify for Level 3 interchange, a business needs to send the enhanced data the card brands require, through a gateway or virtual terminal that actually supports those fields.

Traditional countertop terminals aren’t designed for this. They don’t have the fields, the memory, or the workflow to support full Level 3 detail. Without the right technology (or without configuring it correctly), you simply will not qualify for Level 3 rates—even if you think you’re “set up” for it.

In practice, there are two ways companies send Level 3 data:

Manual entry of the required fields (time-consuming and error-prone)

Automation through a gateway or integration that maps and passes Level 3 fields on every eligible transaction

Many merchants are using outdated systems, incomplete setups, or gateways that were never properly configured for B2B. Industry research and field experience suggest that a large share of businesses are not fully configured to process commercial or purchasing cards at the Level 3 standard, even though they accept those cards every day.

This small technical gap increases interchange costs and quietly erodes margins. As more payables shift to corporate, fleet, and government cards, it becomes even more important to make sure you’re processing those transactions at the most efficient level.

Why Most Businesses Overpay

Even merchants who process commercial cards every single day are often overpaying because of a few recurring issues:

Flat-rate pricing instead of cost-plus. Flat-rate models tend to hide interchange improvements. A cost-plus structure makes the true cost visible and ensures Level 3 savings actually reach the merchant. Missing or incomplete Level 3 data. Skipping required fields can cause a transaction to qualify at a higher-cost category—often 50–150 basis points more on the same sale.

Improper account or gateway configuration. Many sales reps and even some providers don’t fully understand how to configure or map Level 3 fields. A misconfigured setup can cost thousands per month without anyone realizing it.

Key Benefits of Getting Level 3 Right

When Level 3 is implemented and configured correctly, B2B merchants can see:

• Interchange savings up to roughly 30–40% on eligible transactions
• Better cash flow and faster payments
• Detailed, auditable line-item visibility
• Reduced risk of disputes and chargebacks
• Easier reporting and compliance for internal and external audits

For many B2B and government vendors, simply getting the Level 3 structure right is one of the easiest ways to reduce card acceptance costs and improve margins—without changing how customers pay.

Questions about level 3 credit card processing or if you would like a no obligation review give us a call at 888 790 3450 or email info@ revolution-payments.com

Many contractors unknowingly pay far more than necessary, especially on Business-to-Business (B2B) and Business-to-Government (B2G) transactions, simply because their payment systems aren’t configured to qualify for lower interchange rates.

Why So Many Contractors Pay More Than They Should

If you accept corporate, fleet, or government purchasing cards, you might assume your processor is automatically giving you the best rates. The reality? Unless your system is passing Level 2 and Level 3 data, you’re likely paying standard interchange — and leaving significant savings on the table. Level 3 processing can lower the  payment processing fees for government contractors by up to 40%.

Visa and Mastercard offer special reduced rates for these types of transactions, but only when enhanced data is submitted during the transaction.

Most payment processors either don’t support this or haven’t properly set up contractors to take advantage of it. As a result, many businesses end up spending 30% to 50% more than necessary on processing costs.

What Is Level 2 and Level 3 Credit Card Processing?

These are enhanced data levels used in commercial transactions.
When you provide extra details like tax amount, invoice number, and product line items at the time of the sale, card brands see the transaction as lower risk and reward you with lower interchange rates.

The more data you submit, the better your pricing:

• Level 1: Standard consumer-level data

• Level 2: Business data (tax, invoice, etc.)

• Level 3: Detailed line-item information for government/commercial cards

How Contractors Can Reduce Processing Costs Without Extra Work

At Revolution Payments we’ve built tools that automatically handle Level 2 and Level 3 data submission behind the scenes — no manual input needed from your team.

We work exclusively with B2B and B2G contractors, helping you qualify for the lowest possible rates on every eligible transaction. The result? Substantial monthly savings with zero operational disruption.

The Cost of Not Being Set Up Properly

Data shows that 75% to 80% of government contractors are not configured to receive Level 3 pricing. That means most are paying far more than they should on every card transaction — without even realizing it.

If your company accepts GSA SmartPay or corporate purchasing cards, you could be missing out on savings of 1% to 1.5% per transaction.

The Fastest Way to Know If You’re Overpaying

We offer a free, no-obligation interchange analysis that benchmarks your current setup against the most favorable rates offered by Visa and Mastercard.

This audit reveals whether your business is leaving money on the table — and how much you could be saving. With the next round of interchange updates arriving this April and October, now is the perfect time to optimize.

Ready to Stop Overpaying?

If you’d like immediate insight into how much your business could save, you can:

• Upload a recent statement: Click here to submit securely

• Call us directly: 888-790-3450 if you have questions on payment processing fees for government contractors.

• Revolution Payments is a SAM-registered, CAGE-coded vendor that specializes in helping government contractors reduce their interchange costs with Level 3 processing

If your business accepts corporate, government, purchasing, or commercial credit cards, you could be overpaying by as much as 1.5% per transaction. The key to unlocking lower interchange rates lies in QuickBooks Level 3 processing—a powerful solution that can slash your payment processing costs by up to 40% on standard transactions and as much as 75% on high-ticket sales.

How Level 3 Processing Lowers Costs in QuickBooks

Our QuickBooks-integrated Level 3 processing solution ensures every qualifying transaction is optimized for the lowest possible interchange rates—without any manual data entry.

With our seamless QuickBooks integration, you can:
Automate Level 3 data capture to secure lower interchange fees
Accept credit card and ACH payments directly within QuickBooks
Sync transactions in real-time with QuickBooks (A/R & G/L)
Eliminate unnecessary surcharges and benefit from cost-plus pricing
Enhance cash flow by processing payments at multiple QuickBooks entry points

Key Features of Our Level 3 QuickBooks Integration

Compatible with QuickBooks Desktop & Online (Pro, Premier, Enterprise, Accountant)
Instantly posts payments to QuickBooks A/R & G/L
Marks invoices as PAID upon transaction approval
Securely stores customer card details (PCI-compliant)
Sends email invoices with embedded payment links, automatically updating QuickBooks
Supports ACH payments for additional flexibility

Why Interchange Fees Matter More Than Processor Rates

Many businesses mistakenly focus only on their processor’s markup, assuming that’s where the biggest savings lie. However, interchange fees—set by Visa and Mastercard—make up the majority of processing costs. The only way to reduce them is by properly passing Level 3 data, which can cut costs by 1.5% per transaction—savings that no processor can offer without advanced Level 3 technology.

With our QuickBooks Level 3 integration, every eligible transaction automatically qualifies for the lowest interchange rates, ensuring that no savings are left on the table.

Why Work With Us?

Guaranteed Level 3 Savings – Every qualifying transaction is optimized for the lowest rate
Expert-Level Support – Work with specialists who understand interchange and cost reduction strategies
Complimentary Savings Analysis – Send us a recent processing statement, and we’ll show you exactly how much you can save

Questions about QuickBooks Level 3 Credit Card Processing, Get a Free Savings Review

Call us at 888-790-3450 or email info@revolution-payments.com for a no-obligation savings audit.
Prefer fax? Send your last month’s statement to 877-901-3181 for a complimentary review.

Let Revolution Payments help you reduce processing costs, improve cash flow, and eliminate hidden fees—without changing how you do business in QuickBooks.

With the many challenges facing contractors today, many have relied on their banks to set-up their credit card processing. It’s regrettable that many in the contracting industry are unaware of the advantages that correct processing solutions can present.

Many years ago MasterCard and Visa have created special interchange rates to support purchase card programs by reducing the supplier’s transaction costs if Level III line item detail is entered when processing a transaction.

Level III processing can lower the supplier’s discount rate by as much as 1.0% – 1.5% when compared to non-Level III credit card processing, depending on the card type and the size of the transaction.

These special rates are intended to be an incentive to pass Level III, which in turn will assist buyers in managing their purchase card programs Even with the considerable advantages a contractor can receive from level III processing, it is used infrequently.

In fact, statistics show us at level 3 out of 5 contractors are not set up to accept purchasing cards properly.

The fees for accepting credit cards are a part of doing business however, having an understanding of rates and the fees that impact your bottom line will empower you to may more informed decisions Questions? Give us a call 888 790 3450 info@revolution-payments.com www.revolution-payments.com

What is Level 3 processing?
Level 3 processing is a more sophisticated way of accepting commercial, business, purchase & government cards that allows  any business selling to other companies or government to lower transaction cost by 30%-40% from (interchange rebates) that are non-related to the rate processors charge.

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.

Revolution Payments
We’ve made taking advantage of the level 3 interchange rebates easy. We automate this process by automatically attaching level 3 detail to every transaction, so you don’t have to lift a finger to qualify.

Have questions whether your company is processing as efficiently as possible or wondering if you can benefit from level 3 processing?

Free Level 3 Processing Rate Quote. Stop leaving money on the table.

Fax your last month’s statement to 877 351 0195 or call

844 795 0433, Expect to see a 30%-40% reduction in processing fees.

Remember, the rebates for level 3 are non-related to the rate processors charge and only transactions including level 3 are eligible.  GSA Vendors & Contractors Increase your margins by 1% with level 3 credit card processing!

It’s regrettable that many in the contracting industry are unaware of the advantages available for accepting these cards correctly

To support acceptance of corporate & gov P-cards, MC & Visa have reduced interchange rates associated with these cards if Level-3 processing data is included in the credit card transaction.

By providing Level 3 data, a government contractor can substantially reduce their credit card processing fees – sometimes by up to 40%.

Level 3 processing savings

This savings is available for any size ticket,  HOWEVER savings can be further increased for contractors by enrolling in the special GSA Smartpay “Large Ticket” program. This w qualifies your transactions of $5,984.61 and above at 1.2%

Statics show us that at least 3 out of 5 GSA schedule vendors have not been set up to accept Purchase cards correctly. Most business have been set up to accept standard consumer credit cards vs commercial and purchase cards.

This is unknowingly cutting into a vendors profit margin, on average by 1%-1.5%

One reason this is often overlooked is that Level 3 processing reclassifies a portion of the interchange fees businesses pay to accept credit cards, which is not related to the rate your processor charges. Interchange  fees amount to 75% and more, of the total fees a business pays to accept credit cards, interchange also goes back to the card issuing bank.

Credit card processors receive no incentive for offering you level 3 processing, nor are they required to make sure that contractors are properly set up to accept credit cards in the most efficient and economical matter.

Even if someone has good intentions and honestly trying to do a good job for you, their inexperience may be driving your costs up

Revolution Payments developed technology to help contractors meet the requirements resulting in qualifying for MasterCard and Visa Level 3 interchange rates adding from (point 85 to 1.5%) .85%-1.5% or more to your profit margins.

Level 3 processing is not for everyone, if your volume is lower and transactions are infrequent, level 3 processing may not be a good fit for you. That being said, if adding 1% and more to your profit margins, on your existing sales volumes has an impact on your business.

Visit our site for your no obligation level 3 rate quote.

https://www.revolution-payments.com/level-3processing/

Or call us at 888 790 3450

Government Vendors and Contractors.

The following information is provided for informational purposes only to provide technical background
information on the Point of Sale & Transactional Data initiative to vendors.
Transactional Data

• Level-3 “transactional” Data: is an “electronic invoice” with line-item details. It defines “what” is
being purchased, “’how” the sales takes place, “who” is involved in the transaction, and “when” it takes
place, it combines that information with the basic payment data and delivers it electronically to the
issuer.

• Level-3 line item detail provides data elements such as a description of the product, quantity, unitof-
measure, price, price discount applied and sales tax information when applicable. It adds
transparency and accountability to the taxpayer’s money spending process.
• These data elements are combined with basic transaction information such as the merchant
establishment information and cardholder information.

Value Proposition for Vendors:
• Faster funding: Improves profitability by reducing payment time from 30-45 days on an invoice to 2-3
days for electronic payment. Faster payments reduce your cost of floating funds until payments are
received

• Savings – 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 credit
card processing fees – often by 30% to 40%.

• NOTE: The examples below show the “Wholesale” Cost from Visa and MasterCard
(Interchange) to the Acquiring Banks. The true cost to the Vendors/Merchants will be higher because
they will include additional charges from the Bank and/or Independent Agents servicing their
merchant processing accounts. Most independent sales agents work on commissions or “residual
income”.

• SUGGESTION: Vendors should ask their merchant processor for a pricing model which shows
the true interchange cost, plus a constant profit margin (sometimes called “Interchange Plus”, or
“Pass-Through Plus” by the Processors).

• Example #1, Visa Interchange Exercise:
Cost for a $5000 Visa transaction without Level 3 Data: $139 or 2.78%
Cost for a $5000 Visa transaction with Level 3 Data: $99 or 1.98%
Cost for a $3000 Visa transaction without Level 3 Data: $99 or 3.30%
Cost for a $3000 Visa transaction with Level 3 Data: $75 or 2.50%

• Example #2, MasterCard Interchange Exercise:
Cost for a $5000 MasterCard transaction without Level 3 Data: $147.50, or 2.95%
Cost for a $5000 MasterCard transaction with Level 3 Data: $102.50, or 2.05%
Cost for a $3000 MasterCard transaction without Level 3 Data: $88.60, or 2.95%
Cost for a $3000 MasterCard transaction with Level 3 Data: 77.58%, or 2.58%

You can see in the examples above and GSA examples, including level 3 payment detail AKA line item detail can lower the cost of accepting

credit cards from the government and businesses by 30%-40%. This happens before credit card processors add their markup to your

transactions.

For more information give us a call at 888 790 3450 or email info@revolution-payments.com

What is Level 3 Payment Processing

Level 3 credit card processing allows merchants who accept Business-2-Business (B2B) & Business-2-Government (B2G) Corporate or Purchase Cards to send additional line item detail along with the transaction, when in turn lowers interchange cost by 30%-40%.

As stated on the GSA site:

Value Proposition for Vendors:

“Faster funding: Improves profitability by reducing payment time from 30-45 days on an invoice to 2-3 days for electronic payment. Faster payments reduce your cost of floating funds until payments are received

Savings – 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 credit card processing fees – often by 30% to 40%.”

Note: Only transactions including level 3 payment details are eligible for the level 3 processing interchange rates.   Transactions processed w/o level 3 detail qualify at different interchange codes and cost .85%-1.5% higher.  This happens before processors see the transaction and add their processing markup.

Setting up a merchant account to accept government credit cards is complex. Government credit cards have more features, capabilities, and controls. They also have different interchange rates based on how vendors accept them.

We can help get you set up. Quickly. Confidently. Then you’ll immediately be able to take advantage of the reduced interchange rates offered by Visa and MasterCard.

Going forward, your transactions processed through our automated level 3 solution will AUTOMATICALLY include Level 3 line item details so you’ll be eligible for these special rates, reducing your cost of accepting these cards by 1% – 1.5%

Revolution Payments is a leading Advocate & Level 3 Payment Processor for Government Contractors & Suppliers

Questions? Give us a call 888 790 3450

GSA Vendors

Why pay 2.65% vs 1.85%

to process a Government P-card?

With the many challenges facing contractors today, it’s no wonder so many are relying on their banks or existing credit card processors  to set them up to accept Government P-cards.

It’s regrettable that many in the contracting industry are unaware of the advantages available for accepting these cards correctly

To support acceptance of corporate & Government P-cards, MasterCard & Visa have reduced interchange rates associated with these cards if  Level-3 payment data is included in the credit card transaction.  These special rate can reduce a contractors processing costs by up to 40%.

This savings is available for any size ticket, HOWEVER savings can be further increased for contractors by enrolling in the special GSA Smartpay “Large Ticket” program.  This qualifies your  transactions of $5,984.61 and above at 1.2%

Statics show us that at least 3 out of 5 GSA schedule vendors have not been set up to accept Purchase cards correctly. Most have been set up to accept standard consumer credit cards vs commercial and purchase cards. This is unknowingly cutting into a vendors profit margin, on average by 1%-1.5%

One reason this is often overlooked is that Level 3 processing reclassifies a portion of the interchange fees businesses pay to accept credit cards, that is not related to the rates processors charge.

Interchange goes back to the bank that issued the credit card and amounts to 75%-90% of a businesses total expense for accepting credit cards

Credit card processors receive no incentive for offering you level 3 processing, nor are they required to make sure contractors are properly set up to accept credit cards in the most efficient and economical matter.

Revolution Payments developed technology to help contractors meet the requirements for qualifying for the reduced Visa & MasterCard processing rates.

This new revenue can easily add 1%-1.5% to your bottom line without having to increase your sales volume.

Most processors have the best intentions

Even if your processor has the best intentions and honestly trying to do a good job for you, their inexperience when it comes to setting your account properly to accept Government P-Cards may be driving your costs up.

Setting up a merchant account to accept commercial and government credit cards is different than setting up a traditional retail merchant account.

Questions?  Give us a call at 888-790-4350

Or visit www.revolution-payments.com  and click the Free Rate Quote tab at the top for your confidential analysis and rate review.

You can also email a recent statement to info@revolution-payments.com

Revolution Payments

A leading advocate and Level 3 credit card processor for government contractors and suppliers