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Level 3 Processing Rates

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.

2. Transaction Data: During the payment process, the merchant collects detailed transaction data, including line-item details, tax information, and more. This information is usually captured through an integrated payment gateway or specialized software.

3. Data Transmission: The enriched transaction data is securely transmitted to the payment processor or gateway, ensuring its accuracy and integrity.

4. Interchange Optimization: The payment processor includes the level 3 data in the transaction details sent to the card networks, such as Visa or Mastercard. This data allows the transaction to qualify for lower interchange rates, resulting in cost savings for the business.

5. Cost Savings: By leveraging heightened security and more detailed information, you decrease the risk of your transactions. As a result, businesses can enjoy reduced interchange fees, which can translate into significant savings, particularly for businesses with high transaction volumes or larger ticket sizes.


Transaction data

Benefits of Level 3 Processing

To maximize the benefits of level 3 processing rates, businesses should consider the following strategies:

1. Partner with an Experienced Payment Processor: Work with a payment processor or gateway that specializes in level 3 processing. They can provide guidance, ensure compliance with data requirements, and help you optimize your cost savings.

2. Utilize Integrated Payment Solutions: Explore integrated payment solutions that seamlessly capture and transmit level 3 data. Look for software or payment gateways that are compatible with your existing systems and offer the necessary features to simplify the process.

3. Educate Your Team: Train your team on the importance of capturing and transmitting accurate level 3 data. Emphasize the potential cost savings and the positive impact on your bottom line.

4. Monitor and Analyze: Regularly monitor and analyze your processing rates and associated cost savings. This will allow you to assess the effectiveness of your efforts and identify areas for improvement.

What Cards Use Level 3 Data?

It’s not as much the type of card as it is the payment gateway that saves the data. This means, selecting the right payment processor is key to enhancing your transaction data, getting lower interchange rates and speeding up checkout times. Remember, it's crucial to partner with an experienced payment processor, utilize integrated payment solutions, educate your team, and monitor your results to maximize the benefits.


As businesses strive for operational efficiency and cost optimization This means embracing more information in more ways. Store data securely and enhance your B2B transactions while lowering fees with level 3 processing.

Table of Contents

  • - How Do Level 3 Processing Rates Work
  • Benefits of Level 3 Processing
  • What Cards Use Level 3 Data?
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