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

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


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.