What is Level 3 Processing?

Reduce Your Credit Card Processing Fees

What is Level 3 Processing?

Level 3 Processing is used in Business-to-Business (B2B) and Business-to-Government (B2G) purchases. Corporate purchase card transactions are priced differently from consumer credit card transactions. In order for a business to receive the lowest possible rate this requires inputting additional line items. Utilizing the extra data will offer significantly lower interchange rates for Visa and Mastercard transactions.

Level 3 Data

If you are processing majority of B2B or B2G cards, having the ability to accept Level 3 data will help reduce your interchange costs significantly. In order to receive Level 3 processing rates, which can be upwards of 1% reduction, you’ll be required to input the following data.

  • Transaction Amount (Total)
  • Date
  • Tax Amount
  • Customer Code
  • Merchant Postal Cost
  • Merchant Minority Code
  • Tax Identification
  • Merchant Statement Code
  • Destination Postal Code
  • Ship from Postal Code
  • Order Number
  • Invoice Number
  • Item Product Code
  • Items Description
  • Item Commodity Code
  • Item Quantity
  • Items Extended Amount
  • Freight Amount
  • Item Unit of Measure
  • Duty Amount

It is also important to understand that not all gateways have the ability to accommodate Level 3 Data. Prior to moving over to a different merchant service provider, this is a question that must be asked.

Is your business eligible for Level 3 Processing rates?

Almost all merchants are eligible for the Level 3 Rates as long as the business is accepting B2B and B2G cards. However, there are a select few business types that are ineligible.

Ineligible Merchants

  • Airlines/Cruise Lines
  • Passenger Transport
  • Car Rentals
  • Hotels / Lodging
  • Restaurants / Fast-Food
  • Direct Marketing

How do you know if you are receiving the correct Level 3 Rates?

In the merchant processing industry, it can be extremely difficult to ensure that the business is receiving the correct interchange costs, especially when dealing with Level 3 Data. If the business is not receiving the correct interchange costs it can add up to an additional 1% to the total cost of processing.

Our team at MCC has developed a system to make sure your business is always receiving the lowest interchange costs without you ever having to worry about it.

How does it work?

We developed an auditing system to police and monitor merchant processing statements to ensure the business is on the lowest overall costs in all aspects of the payments industry. One of the most common mistakes we tend to run into is a business not receiving the correct interchange rates based on data input and surcharging.

In order for our team to see if you are receiving the lowest possible interchange costs, we simply need to look at one processing statement. From there, we will run it through our system to see if the costs are correct. If they are not, MCC can help implement the new low rates without you having to switch providers or banks.

Overwhelmed yet?

Our team understands the payment industry tends to be extremely confusing and deceptive. Contact us today to let MCC handle the auditing and policing of your merchant account so you never have to worry about overpaying again.

Leave a Reply

Your email address will not be published. Required fields are marked *