What is Level 3 Processing?
Level 3 processing is a more sophisticated way of accepting and processing commercial and government credit cards. Additional line item detail about the transaction is included with the transaction and passed along to Visa.
Commercial cards are divided into 3 categories based on the level of information included with a transaction. If a merchant has the correct rate structure and payment technology capable of capturing level 3 line item detail, a business can lower their transaction cost by up to 40% before a processor adds their processing markup.
Level 1
“Level-1” card data is typically associated with consumer transactions and provides limited purchase data back to the cardholder.
Level 2
“Level-2” data adds more information to benefit the corporate/government/industrial buyer, but the number of fields is limited because of the restricted data capture capabilities provided by most hardware-based Point Of Sales (POS) terminals.
Level 3
“Level-3” (also known as Level III) line item detail, is equivalent to the information found on an itemized invoice..
Comparative Example*
| Merchant Name |
Level 1 |
Level 2 |
Level 3 |
|---|---|---|---|
| Transaction Amount (Total) |
• |
• |
• |
| Date |
• |
• |
• |
| Tax Amount |
• |
• |
|
| Customer Code (30 Char) |
• |
• |
|
| Merchant Postal Code |
• |
• |
|
| Tax Identification |
• |
• |
|
| Merchant Minority Code |
• |
• |
|
| Merchant State Code |
• |
• |
|
| Ship from Postal Code |
• |
||
| Destination Postal Code |
• |
||
| Invoice Number |
• |
||
| Order Number |
• |
||
| Item Product Code |
• |
||
| Item Commodity Code |
• |
||
| Item Description |
• |
||
| Item Quantity |
• |
||
| Item Unit of Measure |
• |
||
| Item Extended Amount |
• |
||
| Freight Amount |
• |
||
| Duty Amount |
• |
Interested in learning more about Level-3 processing?
Revolution Payments is a leading advocate who has been helping businesses who sell to other companies or the government for the last 20 years.
We would love to hear from you. 888 790 3450 or info@ revolution-payments.com
Dont forget to ask about our no obligation level 3 payments audit.