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

We are a full service payment provider for Business-to-Government (B2G) &  Business-to-Business(B2B) companies that require a provider able to support the qualifications required for Level-2 & Level-3 credit card processing Interchange rates

At Revolution Payments, we do things differently, and have been for over 20 years. Our clients are some of the most educated consumers around. Why? Because we take the time to give them straight answers about everything they need to know, impeccable personalized customer service, clear and understandable monthly statements and knowledge about their fees, the latest technology, and the many ways to save money and run their businesses more efficiently without any long term agreements or worry.

We can automate your interchange rate qualification by automatically attaching Level 2 and Level 3 processing credit card processing data on your behalf. This ensures your transactions qualify at the lowest possible interchange rates.

We support Level 3 processing solutions through: QuickBooks, Authorize.net, Magento, Mobile and many ERP solutions. We also support Level 3 card data through all payment channel-swiped, keyed, mobile or internet

We extend powerful payment solutions, flexible connectivity, and easy to use level 3 Processing Payment technology and effective fraud monitoring and security tools to customers around the globe.

Setting up a merchant account to accept commercial, business & government cards is different than a standard retail merchant account.

Statics show us that at least 3 out of 5 GSA businesses have not been set up to accept commercial cards correctly.

Most have been set up to accept standard consumer credit cards vs commercial and purchase cards.
This is unknowingly cutting into profit margins, on average by 1%-1.5%

The image below is how your statement looks when properly set up to accept Purchase cards

Level 3 Interchange Rate

All keyed purchase cards and clearing at Level-3 Interchange and 1.85%

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

To support acceptance of these cards, MC & Visa have reduced interchange rates associated with these cards if Level-2 & Level-3 data is included in the transaction

Revolution Payments developed the technology to help contractors meet these requirements resulting in qualifying for MasterCard and Visa’s lower rates.

These reduced rates are passed on to the merchant dramatically lowering their fees and saving in many cases as much as 50% on our clients processing fees.

Receive your free no obligation complimentary and confidential analysis Today!
https://www.revolution-payments.com/free-rate-quote-request/

Questions? Give us a call at 888 790 3450

It has been our experience that the vast majority of businesses (75 to 80%) that engage in B2B and B2G processing are not aware of or properly set-up to take advantage of MasterCard and Visa’s special rates on the Corporate and Purchase Card programs.

Are you? If so your your rates for these transactions will vary from 1.75%-1.89% and look very similar to the statement snippet above.

Revolution Payments can automatically reclassify your B2B and B2G transactions to level 2 & level 3 interchange rates.

Most business owners overlook the benefits of level 2 and level 3 processing and only focus on “rate” when choosing a processor.  This is a big mistake. Up to 90% of the fees you pay to accept credit cards goes back to the banks that issue credit cards.  This is referred to as “interchange”

Commercial, Purchase and Government credit cards transactions fall into 1 of 3 interchange categories, level 1, level 2 or level 3.  In reality most processors offering cost plus rates will come in relatively close, Level 3 processing allows you to capture up to 1.5% of additional interchange revenue that you cannot get from a processor.

Level 3 Interchange Rates.

I’ve attached a sample statement snippet of a client that is getting level 3 interchange rates.  All transactions are qualifying at

Visa level III interchange 1.85%.

Level 3 Interchange Rates

Compare this with your current rates, if you have questions about level 3 processing, or would like a no obligation level 3 rate quote, give us a call at 888 790 3450 or upload a recent statement HERE

Savings is further enhanced for:

• GSA transactions $5,984.61> Interchange is 1.20% + $39
• Non GSA $8,725> Interchange is ( 1.45% +$35.00 ) this varies whether
  it’s a V/MC

Which qualify for Large Ticket Interchange

If you sell to other businesses or government and not set up correctly
to pass level-2 and level-3 credit card processing detail, your giving up a large
chunk of revenue you cannot get from a processor lowering your rate.
This all happens on an interchange level before your processor adds
their markup.

It’s highly recommended merchants consult with an experienced
Business-to-Business and Business-to-Government merchant service
provider. You need the proper payment technology and rate structure
to ensure you receive 100% of the interchange discounts.

Level-2 and Level-3 Made Easy

Revolution Payments can automate interchange qualification by
automatically sending level-2 and level-3 detail on your behalf
without requiring you to enter the up to 13 fields of information.

Questions? call 888 790 3450

To receive a No obligation and confidential analysis Upload a recent statement Here

Level-3 processing through QuickBooks supported