Levels 1, 2 and 3 Credit Card Processing
Credit card transactions can fit into one of three different categories: Level 1, Level 2 or Level 3 processing. With each level of processing, there is a certain amount of data and requirements needed for verification and authorization. This data can range from very limited to very detailed, depending on the type of customers or clients your business serves. The more data fields required, the lower the processing rates.
What Is Level 1 Processing?
Level 1 credit card processing refers to business-to-consumer (B2C) transactions, during which consumers use their personal credit cards to make purchases both large and small. The data required for a Level 1 transaction to go through is small, with just the merchant name, transaction amount and date needed.
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 business-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 reports.
The data required for a Level 2 transaction includes:
- Merchant name
- Transaction amount
- 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, destination country code, and more.
BluePay B2B Processing Solutions
B2B credit card processing solutions such as Level 2 processing can help B2B merchants build strong relationships with their clientele, as well as increase large ticket transactions with corporations and government agencies. At BluePay, we offer Level 1, Level 2 and Level 3 processing solutions, so no matter what type of customer you serve, you can improve your business and enjoy always-low processing rates.
Contact BluePay today for more information on our B2B credit card processing services.