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Level 2 and Level 3 processing for B2B sales.
Level 2 and Level 3 processing sends extra order details with each business card payment, such as tax, a customer code and line items. On qualifying commercial cards, that data can move the payment into a lower interchange category.
What each level sends
| Level 1 | Standard card data |
| Level 2 | + Tax, customer code, PO |
| Level 3 | + Line-item detail |
| Cards that benefit | Commercial, corporate, purchasing |
| Data sources | Gateway, ERP or invoicing |
Interchange savings depend on the card and the data passed. Card-brand programs change.
Why B2B sellers often pay more than they should
When a business customer pays with a commercial card and the extra data is missing, the payment often falls into a higher interchange category. Here is what we see.
What you often find
- Commercial cards processed as if they were consumer cards
- Tax and PO fields left blank at checkout or in the terminal
- A gateway that can send Level 3 data, but was never set to
- Invoices keyed in by hand, with no line items attached
- No one checking which payments actually qualified
At PayZoom
- Setup that passes Level 2 and Level 3 fields where supported
- Required fields filled in automatically where your systems allow
- Gateway settings reviewed and turned on for enhanced data
- Connections to tools like SAP and QuickBooks where it fits
- Statement reviews that show which payments qualified
How enhanced data can lower B2B card costs
Card networks reward commercial payments that carry fuller data, because that data helps the buyer’s company track spending. Three things have to line up.
A commercial card
The buyer pays with a business, corporate or purchasing card. Consumer cards don’t benefit.
Complete data
Tax amount, customer code and, for Level 3, line-item detail sent with the payment.
The right setup
A gateway, terminal or ERP connection that passes the data correctly. That is the part we handle.
The PayZoom Statement Review
- Send. Email us one recent processing statement.
- Read. We line-item every fee and separate what the card networks charge from what your processor keeps.
- Recommend. You get a plain-English answer. If you are already paying a fair price, we will tell you.
- Switch. If you move to PayZoom, we set up processing to fit your POS, gateway or cart.
Not only did PayZoom lower our costs, they analyzed our internal processes and made recommendations to improve workflow and provided new equipment so we could capture electronic payments at all points in the hospital and at off-site locations.
Jim Bishop, CPA, Controller, Jennie Stuart Medical Center
Since 2006, a person who knows your account.
| Founded | 2006, Daphne, Alabama |
| Clients in | Nearly every U.S. state |
| Support | Never outsourced |
| Registered partner of | Cygnus Payments and Evolv Payment Solutions |
Questions merchants ask us
Straight answers. If yours is not here, call us and a real person will answer it.
What is the difference between Level 2 and Level 3 processing?
Level 2 adds a few fields to a card payment, such as sales tax and a customer or purchase-order code. Level 3 adds line-item detail, such as product codes, quantities and unit prices. Level 3 asks for more data, and on qualifying commercial cards it can reach lower interchange categories than Level 2 alone.
Will Level 2 and Level 3 processing lower my costs?
It can, on qualifying commercial cards with complete data. It won’t change the cost of consumer cards, and the result depends on your card mix. We won’t promise a number. We read your statement, see how many of your payments come from commercial cards, and show you what is realistic.
Have the card-brand rules for enhanced data changed?
Yes. Card brands update their commercial data programs from time to time, including a recent Visa program for commercial enhanced data. Requirements on what data counts and how it is checked can shift. We keep track of these changes for our merchants and adjust setups when the rules move.
Do I need special equipment or software?
Not always. Many gateways and some terminals can pass Level 2 and Level 3 data once they are set up correctly. For higher volume, connecting your ERP or accounting system, such as SAP or QuickBooks, saves typing. A custom API is also an option. We look at what you have before suggesting anything new.
Send us one statement. We’ll tell you exactly what you’re paying.
No cost and no pressure. If your current rate is fair, we’ll say so. We typically reply the same business day.
| Call toll-free | 866.242.4325 |
| Local | 251.626.8100 |
| nate@bizpayzoom.com |