Credit card automation with integrated level 3 processing. Level 1 and 2 transactions can be run through a standard credit card terminal or pc processing program if setup correctly. Amex corporate purchasing card program administrator guide. Level 3 transactions require even more data for processing than level 2 payments. Apr, 2014 this blog will focus on level 3 card processing, as it is the most interesting, prevalent and impactful to both the issuer and the acquirer. Level ii and level iii processing using the simple order api november 2019 8 about this guide about guide audience and purpose this guide is written for application developers who want to use the cybersource simple order api to integrate credit card processing with level ii or level iii data into their order management system. In addition, level 3 credit card processing allows merchants to pay the least. Read on to learn more about this important yet frequently misunderstood topic. Level 3 processing reduces payment acceptance costs by 11. Dec 06, 2017 home credit card processor what is level 3 payment processing by jeff brodsly credit card processor december 6, 2017 most businesses that sell directly to the consumer use level 1 credit card processing for handing transactions with visa, mastercard and american express. How to lower your rates with level 2 and level 3 processing. Level 2 credit card processing is similar to level 3 processing, but with less requirements.
Level 2 and level 3 processing requirements fattmerchant. These additional data fields include merchant name and address, invoice number and tax amount, plus line item details such as item description, quantity and unit of measure, freight amount, and commodity and product codes. Level 3 processing requires the capture of specific line item data in credit card transactions. Although standard credit card terminals do not support level 3 processing, specialized payment software is available and accessible through secure website applications that automatically populate and communicate the required data fields. With level 3 processing, there are many more fields of information to complete on each transaction that help the accounting department of the purchaser. Level ii and level iii processing using the simple order api. Data required to process level 2 and level 3 purchasing cards. Best credit card processors of 2020 business news daily. Credit card issuing banks assign certain interchange fees for different types of cards. Typically, most businesses can stay at level 1, however, depending on the type of cards you take, the amount you are processing, and the information you need to gather in order to secure a. Companies accepting electronic credit card processing payments are wise to partner with american payment solutions to find an integrated acumatica level 3 processing solution.
No matter what processing software you end up using, make sure that it is pci compliant. Understanding level 3 credit card processing and enhanced data. What merchants need to know about level 3 data processing. Level 2 level 3 processing data enterprise group iso. Use level 3 payment technology to submit the data needed to get the best rates, level 3 payment processing technology must be used. Capturing level 2 and level 3 data allows you to reduce interchange costs by 40% and more. Today payments gateway merchant services level iii credit.
Mar 27, 2017 standard credit card terminals are not capable of handling level 3 credit card processing because of all the data field that you must enter. This is likely due to the fact that 3delta systems does not provide merchant accounts itself, so any complaints about credit card processing contract terms and pricing are instead filed against the processor integrated with 3deltas software. Feb 19, 2017 level 3 interchange rates can lower your transaction costs on credit card orders placed by business and government customers by 1% 1. Especially if you deal mostly with consumers or smaller businesses, youre probably better off with levels 1 and 2. Conversion to level 3 processing doesnt need to be complicated. Level 2 and level 3 credit card processing paragon. Level 3 credit card processing enables more detailed transaction information to be conveyed back to buying organizations via their issuing banks. Level 3 credit card processing explained wex corporate. When processing a credit card, data levels are extra fields sent along with the transaction. Level 3 card processing level 3 transactions require even more data for processing than level 2 payments. We recommend the benefits of software as a service that can be accessed through a secure web application. You cannot qualify for level 3 when using a standard credit card terminal.
That means youll need to upgrade your payment environment accordingly with levels 2 and 3 processing. Level 3 processing card not present, cenpos, credit card. Level 3 transactions require special software to transmit the extra information required to qualify the transaction. Level 3 processing sends this detailed info to visa and mastercard. As a b2b merchant, there are many benefits of level 2 credit card processing. Submitting l3 data requires the use of specialized payment software that is accessed via a secure website application. The vast majority of level 2 payments occur in a b2b environment with commercialtype cards. However, that number can go as high as 100 depending on the client. This cloud based solution takes only minutes to install and integrates with most existing business processes. Level 3 credit card processing is probably one of the credit card processing industrys best kept secrets merchants who use specific level 3capable payment integration to their accounting systems or online shopping carts can save a substantial amount on their b2b transactions.
Whether you receive inperson, over the phone, ecommerce from your web site or recurring payments we should be your processor of choice. Level 3 processing credit card processing solutions. Oct 25, 2018 level 3 data can have benefits for you. To learn more about gsa creditcard processings proprietary level 3 processing click here. The key to qualifying for level 3 processing rates is making sure your business is coded properly, has the right technology, and the right processing company. Level 3 transaction are government credit cards or corporate cards. Credit card transactions can fall into 3 different data levels level 1, level 2, and level 3 and each level requires a certain amount of information to qualify its transactions. First data, chase paymentech, and vantiv formerly fifth third all support level 3. This includes level 2 credit card processing and level 3 credit card processing. Discover steps you can take to quickly and easily upgrade. Level 3 required data gsa credit card processing gsa. Level 3 processing solutions service provider level iii gateway. With commercial cards, such as purchasing cards pcards, there are three levels of data when processing credit card transactions.
Level 1, level 2 and level 3 processing are different ways of handling purchasing or pcard, business, commercial, and corporate cards. Level 2 and level 3 credit card processing transnational. What level 3 credit card processing is and why it matters salespad. By default, companies process at level 1, which means that each transaction includes the card number, card expiration, billing address, and zip code. In order to submit level 3 data youre going to use specialized payment software through a secure website application. Level 2 and level 3 card data also known as level ii and level iii is a set of additional information that can be passed during a credit card transaction. It allows invoice information, including lineitem details, to be passed to the cardholders bank statement. Yet what exactly is level 3 credit card processing, and why does your business need it. Level iii data processing is only supported through payas virtual terminal 3 vt3, a custom integration through the xml web services, as well as many other third party gateways, and software applications. Visa and mastercard created special interchange rates to support purchase card programs reducing the merchant transaction costs interchange if level 3 line item detail information is transmitted with the card payment file. Level 3 credit card processing enables b2b businesses to save a substantial amount of money on credit card processing by giving their credit card companies like visa or mastercard more information than they would give these companies to process traditional level 1 or 2 transactions. Only visa purchasing cardtypes are eligible for level 3 rates. Wondering if your business needs level 3 processing capabilities, or if such technology is even worth the trouble.
Level 3 data can reduce costs over 1% for merchants in qualified businesses. Offering level 2 and level 3 transactions can help make your product more attractive and useful to your clients. Level 3 data are lineitem details about a credit card purchase. Level 1, 2, and 3 credit card processing the merchant. Processing payments doesnt get any simpler than cardpointe.
Effectively monitor and track your spending with level 3 card data processing. Level 3 transactions are government credit cards or corporate cards and requires detailed data. With level 3 credit card processing, all transactions require the capture of specific line item data typically around 1520 fields. Though if level 3 is right for you, there are two additional components you should keep in mind. In addition, level 3 credit card processing allows merchants to pay the least fees. Your credit card processing interchange rates are dependent on which level your. Level 3 credit card processing revolution payments. Our systems are integrated with accounting billing crm invoicing software for level iii 3 credit card processing the us credit card processing system is setup on a three level system.
Credit card processing can be bucketed into three different levels. Data required to process level 2 and level 3 purchasing. Level 2 and level 3 card data provides more information for business, commercial, corporate, purchasing, and government cardholders. Level 3 data is typically passed to our bluepay payment platform via integration into the merchants erp system. Level iii or level 3 data refers to providing specific line item details at the time of a purchasing card or government card transaction beyond what is required for consumer card transactions. This level of data is only shared when you process a commercial card.
Level 3 processing includes all the data of a level 2 transaction, plus additional lineitem information, including essential tax data. The card processing level your business uses is related to how much information you collect about a customer when you charge them. As of 2016, visa, mastercard, and american express have programs for level 2 enhanced data, while only visa and. Visa and mastercard have separate interchange categories for level iii transactions, so providing all of the required information can result in savings. This blog will focus on level 3 card processing, as it is the most interesting, prevalent and impactful to both the issuer and the acquirer. B2b level iii processing lowers credit card acceptance fees for corporate, purchasing and business cards for business to business companies. If you sell products and services to consumers, level 1 credit card processing will suffice for most of your business needs. If youre a government contractor, sell to wholesalers, or just generally have a lot of b2b transactions, you should set up level iii credit card processing. Merchants who process level 3 transactions experience a variety of benefits including. As you go up levels, your business is required to add more information in order to process a transaction.
Common line item details for level 3 credit card processing include. In addition to increasing your customer base to include companies that use level 2 credit cards, you can benefit from increased sales, larger tickets, and reduced fees with each purchase. Level 3 processing b2b payment processing revolution. Submitting level 3 data requires the use of specialized payment software that is. Visa and mastercard created special interchange rates to support purchase card programs reducing the merchant transaction costs interchange if level3 line item detail information is transmitted with the card payment file. With level 3 credit card processing, all transactions require the capture of. Level 3 processing was originally invented to prevent excess government spending. The card association and issuing bank can then report the info to the cardholders company, along with the other purchase details. Using level 3 will help optimize interchange rates and save you money as a merchant. The results can be a 1% difference in costs which truly impacts your bottom line. Submitting this additional level 3 data will lower credit card processing cost for these nongsa transactions as well. The benefit of level 2 and 3 processing is the opportunity to significantly reduce the cost of accepting payments.
Level 2 and level 3 credit card processing paragon payment. Why your business needs level 3 payments processing csi. Level 1, level 2 and level 3 processing are different ways of handling purchasing or p card, business, commercial, and corporate cards. Most other software interfaces require merchants to manually enter data by. Patty is in charge of assisting erp software channel partners to. We provide b2b payment technology, platforms and partner integrations to qualify the growing use of commercial and purchasing card spending at the lowest visa level 3 and mastercard data rate 3 interchange rates. Level 3 payment gateway, virtual terminal, and merchant account. Since so much data is needed to qualify for level 3, the processing rates are lower and require wellequipped software.
Today payments gateway merchant services level iii. Many business purchasers, along with government agencies, utilize the additional information made available via level 3 data. Our team programs emv level 1, level 2 and level 3, emv level 2 kernels, and pci pts 3. These levels are distinguished from each other based on how much information is collected at the time of payment and the interchange rate or fees associated with the transaction level. Credit card processing is sorted into three categorieslevel 1, level 2 and level 3 level i, level ii and level iii. For corporate or government buyers, the benefits of level 3 processing are huge the detailed transaction information allows them to monitor and record purchases made on the company card at a lower transaction rate than level 1 or level 2 purchases. Sep 17, 2019 level 1, level 2, and level 3 card processing. If a b2b merchant with level 3 needs cannot integrate.
Interchange fees make up 75%90% of credit card processing fees and why level 3 processing is so vital if you accept commercial transactions. Just like with level 3 data, merchants are required to input additional data fields but typically, the required fields are easier to enter and there are fewer fields to deal with. Additionally, if you ever process transactions over a certain dollar amount, the card networks have specific large ticket interchange qualifications that reduce processing fees. Level 3 credit card processing july 16, 2015 technology is key for money management and capturing and submitting level 2 and level 3 payment detail with commercial credit card transactions is key for your business to receive and qualify your commercial, corporate, fleet, business and government credit card transactions at the lowest interchange. Adding level iii data to a transaction generally reduces the rates charged by visa and mastercard for processing the transaction and it enhances the level of reporting available to you and your customers. If you dont pass level 3 detail regardless of your service provider youre charged a higher interchange rate. As you begin selling to b2b or b2g customers, many of your clients will want greater control over how their credit cards are processed. Level 1 data is the normal information sent by the processor helcim to the customers issuing bank when processing a credit card transaction. It offers omnichannel and level 3 card processing, but it specializes in online transactions and integrates with more than 450 software platforms. Level 3 processing can dramatically drop your base interchange rate for businesstobusiness and businesstogovernment transactions. Level 3 processing was initially created to prevent excess government spending. Submitting l3 data requires the use of specialized payment software that is. Again, only corporate and government cards are able to achieve level 3 rates. The most significant reason for supplying this more detailed information, at least from the merchant perspective, is that the interchange fees they are charged as part of their total transaction fee are significantly reduced.
Typically, most businesses can stay at level 1, however, depending on the type of cards you take, the amount you are processing, and the information you need to gather in order to secure a transaction, you might qualify for a higher level. Standard credit card terminals do not support level 3. Level 3 processing b2b payment processing revolution payments. Standard credit card terminals and b2consumer payment software are not capable of supporting level 3. Instantly reduce credit card transaction fees up to 39% through level 3 processing. Level 3 interchange rates can lower your transaction costs on credit card orders placed by business and government customers by 1% 1. Home b2b payment gateway level 3 data b2b payments. This level of credit card processing generally involves corporate credit accounts such as business and procurement.
What is level 3 payment processing chosen payments. Level 3 processing can net merchants an interchange discount of up to 1%, but they have to be willing to collect and input quite a bit of information. You must also submit your transaction and level 3 detail via a level 3 supported gateway or level 3 supported software. Jul 16, 2015 each level depicts additional details about a transaction and passes this along to the card issuer.
Making level 3 credit card processing work for you. Level iii data is enhanced information about the transaction, such as tax, discount, and product details. Each level has unique data specifications that determine the potential rate merchants pay for related card acceptance. Quickbooks integrated level iii 3 credit card processing. Level 3 line item detail can equate to more than 11 different line items and include. Level 3 processing level 3 card data like level 2 processing, merchants that achieve level 3 processing are going to be accepting a large amount of commercial cards andor government cards from businesses and government agencies b2g. Level 3 credit card processing is probably one of the credit card. When processing level 3 transactions, the transaction must be processed as a preauthorization first. As of 2018, visa sets its level iii rate for qualifying commercial cards at 1. To qualify for level 3 processing, organizations must integrate their payment. Standard credit card terminals are not capable of handling level 3 credit card processing because of all the data field that you must enter. Level 3 payment processing is used for transacting business with larger corporate or government purchasers. Jun 29, 2017 are you curious about the distinction between level 1, level 2, and level 3 credit card processing.
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