Level 3 Payment Processing

B2B Made Easy with Level 3 Payment Processing

Take Business and Government Processing to a Whole New Level with Level 3 Processing

Business-to-business (B2B) and business-to-government (B2G) purchases are increasingly being made via purchasing, corporate and business cards. Large corporations and government agencies use Level 3 credit cards to effectively monitor and track their spending. Take advantage of the benefits offered by MerchantPay’s Level 3 processing.

• Lower your card processing fees
• Optimize reporting for business cardholders
• Reduce Days Sales Outstanding (DSO) by collecting accounts receivable funds sooner and eliminating the cost of floating funds

MerchantPay offers its customers the best payment processing solutions in the industry - including our award-winning e-commerce platform/gateway - developed by our award-winning, in-house IT department.

Level 3 Credit Card Processing

Corporate purchase card transactions are priced differently from consumer credit card transactions. Getting the best rate for corporate purchases requires the inclusion of line item detail on each transaction. Because so much data is required, most merchants accepting L3 transactions integrate payment acceptance into their ERP system to eliminate manual entry of line item detail.

MerchantPay ensures that our PCI Level 3 processing offers the same level of security as our Level 1 and Level 2 processing. Our PCI-compliant security solutions feature point-to-point encryption (P2PE), tokenization, a suite of fraud management tools, secure hosted payment forms and more. Our secure payment systems are never outsourced to third-party security companies, so our in-house solution keeps your buyers’ sensitive payment data in the right hands.

Benefits of Level 3 Processing

Merchants who process Level 3 transactions save money with lower interchange rates than that available for Level 1 or Level 2 purchases. In addition, they receive detailed reporting that allows them to track transactions from inception to settlement. Reporting can also be customized with up to 100 different fields.

Merchants who offer Level 3 processing are able to tap into the (often large ticket) purchases of large corporations and government agencies by attracting customers who use Level 3 purchase cards. MerchantPay passes the data, including customized fields for reporting purposes, back to the merchant, which fosters relationships between merchants and their L3 buyers.

Qualifying for Level 3 Credit card processing

Level 3 processing requires the capture of specific line item data in credit card transactions. These additional data fields include merchant name and address, invoice number and tax amount, plus line item details such as item description, quantity and unit of measure, freight amount, and commodity and product codes. The chart below shows the data requirements for each level of processing.

The extra reporting makes it easier for corporate and government customers to monitor and track internal spending. It also allows customers to set predefined restrictions on how and when cards are used. For example, a corporation or government entity might want to set upper limits on transactional amounts or the monthly frequency of purchases.

Level 3 Payment Technology

Standard credit card terminals do not support Level 3. Submitting L3 data requires the use of specialized payment software that is accessed via a secure website application. L3 data is typically passed to our MerchantPay payment platform via integration into the merchant’s ERP system. If a B2B merchant with Level 3 needs cannot integrate right away, no problem! MerchantPay offers Level 1, 2 and 3 processing via the virtual terminal (VT) on the MerchantPay payment gateway. The virtual terminal allows merchants to manually key in the line item details on Level 3 transactions and obtain Level 3 transactions to obtain the lower rates.

Level 3 Pricing

MasterCard and Visa Interchange differs for Level 3 in both rate and qualification requirements.

Level 1, 2 and 3 Comparisan

• Level 1
  “Level 1” card data is typically associated with consumer transactions and provides limited purchase data back to the cardholder.
• Level 2
  “Level 2” data adds more information to benefit the corporate/government/industrial buyer, but the number of fields is limited because of the restricted data capture capabilities provided by most hardware-based Point of Sale (POS) terminals.
• Level 3
  “Level 3” (also known as Level III) line item detail is equivalent to the information found on an itemized invoice.

 

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