Moreover, level 3 processing captures and transmits more detailed transaction data, providing enhanced transparency and accountability. This additional data includes line-item details such as item descriptions, quantities, tax information, and more.
By capturing and transmitting this enriched data, businesses qualify for lower interchange rates, resulting in significant cost savings. However, it's important to note that level 3 processing rates are typically available for specific card types, such as commercial, purchasing, and government cards.
How Do Level 3 Processing Rates Work
To take advantage of level 3 processing rates, businesses need to ensure they have the necessary infrastructure and technology in place. Here's a simplified overview of how the process works:
1. Merchant Account Setup: Businesses need to partner with a payment processor or gateway that supports this level of data exchange. So if you’re looking to incorporate this in your payment cycle, then be sure to ask a provider about how they can make it happen.
