What is Level 3 Payment Processing
Level 3 credit card processing allows merchants who accept Business-2-Business (B2B) & Business-2-Government (B2G) Corporate or Purchase Cards to send additional line item detail along with the transaction, when in turn lowers interchange cost by 30%-40%.
As stated on the GSA site:
Value Proposition for Vendors:
“Faster funding: Improves profitability by reducing payment time from 30-45 days on an invoice to 2-3 days for electronic payment. Faster payments reduce your cost of floating funds until payments are received
Savings – MasterCard and Visa have created special rates to support Purchase Card programs reducing the merchant transaction costs (Interchange) if Level-3 line item detail information is transmitted with the card payment file. By providing Level-3 data, a supplier may reduce their credit card processing fees – often by 30% to 40%.”
Note: Only transactions including level 3 payment details are eligible for the level 3 processing interchange rates. Transactions processed w/o level 3 detail qualify at different interchange codes and cost .85%-1.5% higher. This happens before processors see the transaction and add their processing markup.
Setting up a merchant account to accept government credit cards is complex. Government credit cards have more features, capabilities, and controls. They also have different interchange rates based on how vendors accept them.
We can help get you set up. Quickly. Confidently. Then you’ll immediately be able to take advantage of the reduced interchange rates offered by Visa and MasterCard.
Going forward, your transactions processed through our automated level 3 solution will AUTOMATICALLY include Level 3 line item details so you’ll be eligible for these special rates, reducing your cost of accepting these cards by 1% – 1.5%
Revolution Payments is a leading Advocate & Level 3 Payment Processor for Government Contractors & Suppliers
Questions? Give us a call 888 790 3450