Understanding and Optimizing Level I, Level II, Level III Credit Card Processing

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Level I, Level II, and Level III Credit Card Processing play a crucial role in defining interchange categories and qualifications for B2B and B2G credit card transactions. Implementing Level 3 credit card processing can significantly reduce the cost of accepting these transactions by up to 40% before the processor adds their fee.

Key Points:

Interchange Buckets

• Level 1
• Level 2
• Level 3
• Large Ticket

Level I Credit Card Processing

• Basic transactions between businesses and consumers.
• Includes minimal payment details: Merchant Name, Transaction Amount, Transaction Date.

Level II Credit Card Processing

• Similar to Level I but with additional details.
• Can reduce interchange costs by approximately 0.50% on certain card types.
• Tax exempt transactions are not eligible for Level II savings.
• Additional details include Tax Amount, Customer Code or PO number, Merchant Zip Code, and Transaction Date.

Level III Credit Card Processing

• Requires information from Level I and Level II.
• Additional fields include Ship From and Destination Postal Code, Invoice Number, Order Number, Freight Amount, Line Item Detail of Purchase.
• Qualifying for Level III rates requires sophisticated technology capable of capturing detailed information found on invoices.

Large Ticket Processing

• Eligible for transactions with Level 3 detail.
• Visa Commercial Product Large Ticket and MasterCard requirements outlined.
• Not eligible for certain categories like Travel and Entertainment, Restaurants, High-Risk Direct Marketing.

Important Note

• Authorizations must be settled within 2 days for Level III interchange qualification.

Revolution Payments Optimization Service

• Provides a cost-plus merchant account and a virtual terminal capable of capturing the required line item detail.
• Ensures every transaction qualifies at the lowest possible interchange rates.

For questions about Level I, Level II, Level III Credit Card Processing, or for a no-obligation Level 3 analysis and audit, contact us at 888-790-3450 or email [email protected]. With over 15 years of expertise in Level III processing, we are dedicated to providing savings to our clients.