Level 3 Credit Card Processing Rates

What’s one thing  95% of people doing business with the government are not told?

That Visa & MasterCard created special Level 3 Credit Card Processing Rates (level 3 credit card processing) as an incentive to encourage vendors to enter level 3 payment detail on government and non government commercial cards.

When applied, these special rates lower the “interchange” cost of accepting these cards by as much as 1%-1.5%

The key word here is interchange, remember 100% of interchange goes back to the bank that issued the credit card.

Interchange is the single largest component of merchant discount rate pricing and amounts to 75%-90% of a businesses total expense for accepting cards.


It’s regrettable that many businesses are unaware of the advantages that correct processing solutions can present.  Setting up an account to accept commercial cards is much different than a standard retail merchant account  .


Statistics show us that (3 out of 5) accepting commercial, P-cards, B2B & government cards are have not been set up properly and unknowingly losing 1% and more of potential revenue.  Most of which probably have a really good (processor) rate.

People have been conditioned to focus only on the rate a processor charges, when 75% + of the fees your paying (interchange) goes directly back to the bank that issued your customers credit card.

Here’s the facts!

Commercial cards qualify at 1 of 3 interchange rates, Level 1, level 2 and level 3.  The interchange cost of accepting a commercial cards with vs w/o level 3 varies from .80%-1.5%. Accept a card w/o level 3, your transaction qualifies at level 1.

Why does this matter?   This .80%-1.5% interchange fee is applied (depending on type of card/size of transaction) before your processor adds their rate.

Even having the lowest rate from your processor, accepting a commercial card w/o level 3 and your losing roughly 1% of revenue before your processor adds their fee.

Listen, even if someone is honestly trying to do a good job for you, their inexperience when it comes to interchange and commercial credit cards could be driving your expenses up.

What Revolution is doing and our automated Level 3 processing. This solution solution is not for everyone however, if the bulk of your transactions come from a business or government,  or adding roughly 1.5% to your profit margins on your B2B or government transactions has an impact on your business, why don’t you take advantage of a no obligation level 3 rate review and analysis? No obligation, just good information that will help empower your business.

Questions? Call 888 790 3450


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