Level 2 & 3 Processing

MyVPOS fully supports Level 2 & 3 processing data to help merchants ensure the lowest possible processing rates when accepting certain card types. If you receive credit-card payments from other businesses, it is vital to research the potential benefits of Level 2, and 3 processing.

What Is Level 2 Processing?

Level 2 credit card processing refers to a more detailed transaction designed to support business-to-business (B2B) payment processing. Business or government clientele require specific payment methods, with the ability to monitor and control corporate and employee spending. Level 2 credit card processing simplifies the B2B transaction, improving customer service for your business clientele and providing them with more accurate transaction detail, and information.

The data required for a Level 2 transaction includes:

Merchant name
Transaction amount
Date
Tax amount
Customer code

Merchant postal code
Tax identification
Merchant minority code
Merchant state code

What Is Level 3 Processing?

Level 3 credit card processing requires the most detailed data, and the transactions are often made with government or corporate purchasing cards. Government agencies and businesses use purchasing cards for enhanced reporting and more control over employee purchases. The data fields required for Level 3 processing includes those from Level 2 transactions, in addition to a number of others such as item product codes, item descriptions and quantities, item tax rate, ship from postal code, freight amount, duty amount, destination postal code, and destination country code. Basically any information usually found on a standard invoice.

Transactions submitted with Level 3 card data qualify for lower Visa and MasterCard Interchange rates. Transactions with Level 3 Card Data can clear at rates ranging from 0.25% to 2.5% lower than the exact same transactions submitted without it. Many government and institutional cardholders, have begun to require vendors to submit Level 3 Card Data. With the amount of detail transmitted through Level 3 processing, businesses can closely monitor and track purchases made on the company credit card. This helps to minimize inappropriate spending, and allows businesses to see where their money is going. With improved control over the spending process, businesses can reduce costs and improve business operations.