Interchange Optimization

Interchange Optimization

Level 2 and level 3 credit card processing encompass greater functionality and information filtering than level 1, which solely deals with the limited purchase data of consumer transactions.

The higher processing levels of 2 & 3 allow companies to gain greater control of their relationships and cultivate their business within secure, information-driven parameters. Since both level 2 and level 3 transactions deal with higher volume on a regular basis, they are usually accompanied with lower interchange fees and processing costs.

Level 2 Processing

Level 2 credit card processing incorporates greater detail into transactions, with the intention to support the operations of business-to-business (B2B) companies. During the level 2 transaction, more information is collected since these companies are usually dealing with higher levels of traffic and monetary value. The data that this process provides includes:

  • Merchant name
  • Transaction amount
  • Date
  • Tax amount
  • Customer code
  • Merchant postal code
  • Tax identification
  • Merchant minority code
  • Merchant state code

Level 3 Processing

Level 3 credit card processing involves the highest amount of data and deals most often with government or corporate purchasing cards. These corporate purchasing cards are widely used by government agencies and businesses in order to gain more control over employee purchases and reporting. On top of the data collected in a level 2 transaction, level 3 requires other information 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.