Level 3 Processing

The cost-lowering secret the big banks don’t want you to know.

Interchange Optimization is a very targeted area of payment processing and if you take payments from other businesses, you should not only know about it, but use it immediately.

Don’t pay more than you should to accept B2B payments.

Everything you need to know

What is Level 3 Data?

Level 3 data allows merchants to reduce the cost of accepting payments from businesses and government cardholders. While most amateur processing agents would tell you that it’s only about the data, there’s more to it.

How Much Can You Save?

The bigger the transaction, the more you can save. For most merchants leveraging Level 3 Processing, the savings are over 1% of the transaction amount. That’s a 34% reduction in the cost of processing.

How to Get Level 3 Processing Rates

To qualify for Level 3 Processing rates, your transactions need to include all of the required information fields, be coded properly, and have the right technology in place. That may sound daunting, but we’ve got you covered.

What Information is Required for Level 3 Processing Rates?

The full data set requirements are in the table on this page, but don’t forget that, unlike what many profess on the interwebs, there is more to it than just transaction data.

More than Just Data: Why Wouldn’t I Get Level 3 Rates?

Every time your business accepts a payment, three entities get paid: the bank (issuing bank), the network (Visa, MC, etc.), and the processor. Level 2 and Level 3 processing rates are a reduction in the amount owed to the issuing banks (interchange).

Merchant Category Coding

Every merchant account is assigned a very specific Merchant Category Code. Not all MCC’s are eligible for Level 3 processing, so being in the right code is absolutely critical.

Transaction Data

To qualify for Level 3 processing rates, each transaction needs to have 26 individual pieces of data added to it. 

Tier 1 Gateway

Even if you’re coded properly and you add all the data in the world to your transaction, your gateway needs to be a Tier 1 Gateway and capable of passing the right information.

Integrated and Automated Level 3

Level 3 Processing Rates – Integrated and Automated

No one wants to key in 26 different data fields and item level invoice details on every transaction. Our technology automates every piece of this Level 3 Processing requirement and even integrates to popular software.

QuickBooks Integration

WooCommerce Integration

Magento Integration

Salesforce Integration

Netsuite Integration

Learn Everything the Big Banks Don’t Want You to Know About Level 3 Processing

Every dollar that we put on your bottom line in the form of interchange savings comes directly from the pockets of the giant banks that hope you never learn what’s in this free guide. We wrote this to educate you and hopefully prove to you that we are indeed experts in Level 2 and Level 3 Processing. We believe that knowledge is power and our technology takes that power and transfers it from us to you.

Frequently Asked Questions

A Little Bird Told Me You’ve Got Questions

Answers are our favorite things to give… well that and amazing service, thank you cards for referrals, killer swag to our partners, and immense savings for our clients. We do like answering questions though.

How much can I save with Level 3 processing?

You can easily see a 1% reduction in interchange fees when your transactions qualifies for Level 3 interchange rates. For example, a Business Credit Card that, for Data Rate 1, would cost 2.95% to process would drop all the way to 1.90%. Imagine a transaction of $5,000 – that’s a $50 savings PER transaction.

What is Level 3 data?

Level 3 processing requires the passing of Level 3 data. Collecting it is part of the equation, but having a gateway capable of transmitting it in the format needed by the card brands is critical to getting those Level 3 processing rates. There is a chart above with a detailed listing of the information sets required for Level 3 processing rate qualification.


What are the requirements for Level 3 processing?

There are three components to achieving level 3 processing rates: 1) proper merchant coding, 2) passing the correct data items with each transaction and 3) using a gateway that can translate that information to the card brands. If you want to automate this process, you’d also need a transactional template that is built for your business.


Is there a cost associated with Level 2/3 Interchange Optimization?

Unlike many companies, we pass 100% of the Level 2/3 savings to our customers using an interchange plus pricing program. Compare this to CardConnect (keeps 50%), Helcim (keeps 30%), and many that don’t pass any of these savings, and we’re feeling pretty good.