Level 3 Credit Card Processing Interchange

Level 3 credit card processing interchange can be achieved very easily.  Level 3 processing is a more sophisticated  way of processing Business-2-Business (B2B) and Business-2-Government (B2G) credit card transactions that can easily lower your cost of accepting these cards by 30%-40%.

Level-3 processing provides additional line item detail information on the credit cards you accept from other businesses and or government.

This information tells the credit card  issuing bank how the sale is taking place, and when, what is being purchased, who is involved in the transaction (very similar to information located on an invoice), this reclassifies the interchange codes  making these transactions eligible for level 3 interchange rates.


Level-3 Processing allows  businesses to capture 1%-1.5% of additional interchange revenue on B2B & B2G transactions that you’re otherwise ineligible for.

Let me explain.  

Believe it or not only about 25% of the fees you pay to accept credit cards actually goes to your processor.

75% or more goes back to the card issuing bank in the form of interchange.  Interchange is the same regardless of the processor you choose. Current interchange rates and be found on Visa & MasterCard‘s site.  Interchange generally changes every April & October

The card issuing banks are the real winners and why Level 3 processing is so important.


Business-to-Business (B2B) & Business-2-Government  (B2G) transactions fall into 1 of 3 interchange categories, Level 1, Level 2 and Level 3. The higher the level, the lower the interchange rate.

The interchange cost of processing a transaction at level 3 vs. not can be as high as 1%-1.5%, This does not include the  interchange savings up and above Level-3 interchange for High Ticket transactions.

Sample Level-3 Processing Statement

I’ve included a statement snippet from one of my clients who is properly set up for level 3 processing. Even though they key 100% of their transactions and only accept commercial & government cards you can see 100% of their transactions are qualifying at the level 3 interchange rate for Visa @ 1.85%


Sample Level 3 Credit Card Processing Statement


How to Qualify for Level-3 processing interchange

Level 3 card processing requires sophisticated payment solutions capable of capturing the additional line item detail requirements. Standard credit card terminals will not support Level 3 Line Item Detail.  You can do a search online to find level 3 payment gateways.


Revolution Payments made qualifying for level 3 very easy.   We automate the Level 3 updating of credit card payments – making the complex incredibly simple, without you having to finger and do it across all payment channels, swiped, keyed, internet and mobile.

If you have any questions about level 3 processing give us a call 888 790 3450 or upload a recent statement for a Level 3 Credit Card Processing Interchange audit.  No obligation, just good information that will empower your business.

Level 3 Rate Quote HERE


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