Level 3 Data Explained

Level 2 credit card processing is designed for the business-to-business (B2B) model with more detailed transactions. This type of credit card processing that accepts detailed transaction information with every sale is required by many government offices and businesses. Level 2 data provided with a sale also allows for lower interchange rates because MasterCard and Visa recognize that such transactions with additional information are more likely to be legitimate.

Level 3 data takes this to the next level. If you accept a great deal of government-issued cards or process a lot of transactions in the B2B industry, Level 3 data acceptance can reduce your interchange rates even further with savings of up to 1.00% compared to standard interchange rates.

Requirements for Level 3
Host Merchant Services offers level 3 credit card processing, a service that only some gateways can accommodate. To qualify for level 3, you will need to input the following data fields for every transaction. The good news is your gateway can be setup to automatically pass this data along with the transaction.

  • Merchant name
  • Transaction amount
  • Tax amount
  • Date of transaction
  • Merchant zip code
  • Customer code
  • Ship from and destination zip code
  • Order number and invoice number
  • Item product code and commodity code
  • Item quantity and description
  • Freight amount and duty amount

 

MasterCard Level 2 and 3 Rates
Level 2 and 3 card processing can help you access significantly lower rates, depending on the type of card you accept. If you accept large, level 3-eligible transactions, there is a good chance that even one large sale will quickly exceed the additional cost of level 3 processing.

While there are hundreds of underlying interchange rates and many are eligible for level 2/3 data rates, some are not. Below are the most common transaction types eligible for rate reductions with level 2 and level 3 processing.

MasterCard Data Rate 1

  • Standard Rate: 2.65% + $0.10/transaction
  • Level 2 Rate: 2.00% + $0.10/transaction
  • Level 3 Rate: 1.75% + $0.10/transaction

MasterCard Data Rate 2

  • Standard Rate: 2.81% + $0.10/transaction
  • Level 2 Rate: 2.16% + $0.10/transaction
  • Level 3 Rate: 1.91% + $0.10/transaction

MasterCard Data Rate 3

  • Standard Rate: 2.86% + $0.10/transaction
  • Level 2 Rate: 2.21% + $0.10/transaction
  • Level 3 Rate: 1.96% + $0.10/transaction

MasterCard Data Rate 4

  • Standard Rate: 2.96% + $0.10/transaction
  • Level 2 Rate: 2.31% + $0.10/transaction
  • Level 3 Rate: 2.06% + $0.10/transaction

MasterCard Business Debit/Prepaid

  • Standard Rate: 2.65% + $0.10/transaction
  • Level 2 Rate: 2.20% + $0.10/transaction
  • Level 3 Rate: 1.80% + $0.10/transaction

Visa Level 2 and 3 Rates
Visa Business Retail Card

  • Standard Rate: 2.20% + $0.10/transaction
  • Level 2 Rate: 2.05% + $0.10/transaction
  • Level 3 Rate: 1.85% + $0.10/transaction

Visa Business Card Not Present

  • Standard Rate: 2.25% + $0.10/transaction
  • Level 2 Rate: 2.05% + $0.10/transaction
  • Level 3 Rate: 1.85% + $0.10/transaction

Visa Commercial Card Not Present

  • Standard Rate: 2.65% + $0.10/transaction
  • Level 2 Rate: 2.05% + $0.10/transaction
  • Level 3 Rate: 1.85% + $0.10/transaction

Visa Commercial Card Present

  • Standard Rate: 2.50% + $0.10/transaction
  • Level 2 Rate: 2.05% + $0.10/transaction
  • Level 3 Rate: 1.85% + $0.10/transaction

You can trust Host Merchant Services to ensure your account is setup for level 3 acceptance to help you access these lower rates with B2B and government transactions. Ready to enjoy lower costs today? At Host Merchant Services, we take pride in offering free equipment with no hidden costs and a lowest rate guarantee. Call us today at 877-517-HOST(4678) to set up level 3 data acceptance with your NMI gateway for a low monthly cost.