If you accept government purchase cards, it may be worth investigating a level-3 data capable software provider. Visa and MasterCard created special interchange rates to support purchase/commercial card program by reducing the transaction cost (interchange) if Level 3 line item detail is provided with the transaction. By providing Level 3 data, a supplier can reduce credit card processing fees by 30%-40%.
What is level 3 detail?
Its transactional data that gives more detail about a transaction. If defines the who, what and where of a transaction. The chart below shows the level 3 requirements.
| Data Element | |||
|---|---|---|---|
| Merchant Name | |||
| Transaction Amount | |||
| Transaction Date | |||
| Customer Code | |||
| Ship From Postal Code | |||
| Destination Postal Code | |||
| invoice Number | |||
| Order Number | |||
| Freight Amount | |||
| Line Item Detail of Purchase |
Commercial and Purchase cards qualify at 1 of 3 different interchange rates. Level 1, Level 2 or Level 3. The different levels are based on what information you include with these cards. Accepting a commercial card without level 3 detail, you pay roughly 1% more (interchange) before your processor ads their fee. I strongly encourage finding a Level-3 Data Capable Software Provider
The fees associated with accepting credit cards are a part of doing business, but it is possible to reduce the impact of these cost through level 3 processing.
Example #1, Visa Interchange Exercise:
Cost for a $5000 Visa transaction without Level 3 Data: $139 or 2.78%
Cost for a $5000 Visa transaction with Level 3 Data: $99 or 1.98%
Cost for a $3000 Visa transaction without Level 3 Data: $99 or 3.30%
Cost for a $3000 Visa transaction with Level 3 Data: $75 or 2.50%
Example #2, MasterCard Interchange Exercise:
Cost for a $5000 MasterCard transaction without Level 3 Data: $147.50, or 2.95%
Cost for a $5000 MasterCard transaction with Level 3 Data: $102.50, or 2.05%
Cost for a $3000 MasterCard transaction without Level 3 Data: $88.60, or 2.95%
Cost for a $3000 MasterCard transaction with Level 3 Data: 77.58%, or 2.58%
If you need a Level-3 Data Capable Software Provider, have questions, or would like a free level 3 analysis, we would love to hear from you.
Give us a call at 888 790 3450 or email info@ revolution-payments.com
