Level 3 Credit Card Processing

The difference  between Level 1, Level 2 and Level 3 processing is pretty simple. While the size of the transaction does play a role, in general, Visa and MasterCard provide better interchange reimbursement fees when you provide more details about the sale.

Level 1 processing mostly used for business-to-consumer transactions. Very little information is required, with just merchant’s name, transaction amount and date needed. This is where you will also find the highest interchange rates, up to 3.25%.

A virtual terminal, where you can enter credit card and payment information online, opens you up to Level 2 and Level 3 processing. This is more for business-to-business payment processing where you can significantly reduce interchange costs.

Unlike Level 1, where only cardholder data is captured, Level 2 requires you to input merchant codes and tax information. Level 3, meanwhile provides line item details, such as item description, quantity and product codes, and shipping and freight costs.

For credit transactions more than $5,000, Level 3 large ticket processing can provide you additional savings.


Free Download

To learn more about Level 3 Processing, download “Unexpected Findings: How Level 3 Reduces Your Cost for Processing Business Transactions.” Get the free whitepaper and receive:

  • An Introduction to Level 3 Processing
  • Level 3 Processing Examples
  • Separating Level 3 Fact From Fiction
  • Level 1, Level 2 and Level 3 Data Chart