What Are Level 3 Credit Card Transactions?

Credit card transactions are divided into three different types for the purposes of processing – level 1, 2 and 3. The types reflect the level of requirements needed before the transaction can be authorized, and depending on the level can be either quite cursory, or incredibly detailed.
The level of the transaction will depend on the types of customer that your business works with, and the cost of processing the transaction will depend on the number of data fields required.
Level 1 credit card transactions are the B2C transactions that most of us do on a daily basis. They can be small or large purchases, but they are quite routine things and they do not need extensive checks. The data required to complete a level 1 transaction is minimal – usually just the customer name, the date of the transaction and the amount.
Level 2 transactions, on the other hand, are bigger B2B transactions. These are transactions carried out through business-specific payment channels, where the ability to monitor and control spending is required. Level 2 processing simplifies the B2B spending process, and provides clients with very accurate transaction reports.
The highest level is Level 3 credit card processing. This requires the most detailed data and as such it has the lowest processing fees. Level 3 credit card processing is usually used by government agencies and by businesses that want to have more control over the spending of card-holding employees.
The amount of data required for Level 3 credit card processing is greater than that for level 2 – it includes product codes, the descriptions of items processed as well as the quantity of each item, the tax rate, freight amount, the postal code it was shipped from and shipped to, the destination country code, the duty amount…..etc. This helps to ensure that any transactions carried out are indeed for the purpose of conducting business.
B2B credit card processing solutions can seem difficult to get started with at first, but if you want to ensure that you enjoy low processing rates and that your clients are happy with your payment processing solutions it is important that you give some thought to the level of transaction handling that you use. There are several payment processors that offer the higher level of payment processing, so it should be easy to find one that will suit your needs.
It is important to offer as many payment options as possible to ensure that you do not lose clients. Every business has their own strict requirements for how expenses must be handled, and the easier you make it for people to work with you, the more likely they are to use your business as one of their main suppliers.

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