How Level 3 Transactions Improve B2B Credit Card Processing
Business-to-business (B2B) credit card processing transactions require a higher level of detail than business-to-consumer (B2C) purchases in order for businesses to effectively monitor and track their spending. Here, we’ll explore Level 3 processing, a type of B2B transaction that offers more detailed data for better business management.
What Is Level 3 Processing?
Credit card processing can be broken into three different categories: Level 1, Level 2 and Level 3. Each processing level involves transmitting a certain amount of data for verification and authorization.
Level 1 processing refers to B2C transactions that occur when consumers use their personal credit cards to make purchases, and requires the least amount of data, including just the merchant name, transaction amount and date.
Level 2 processing involves B2B processing and includes additional information, such as tax amount, customer code and merchant postal code.
Level 3 processing requires the most detailed data, including item product code, item description, quantity, tax rate, discount indicator and more. Because so much data is needed to qualify for Level 3, the processing rates are lower and require well-equipped software.
Improving B2B Credit Card Processing
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 and why. With improved control over the spending process, businesses can reduce costs and improve business operations.