What is Level 3 payment processor?

Level 3 Payment Processing: Empowering B2B and B2G Transactions

Introduction

In the realm of electronic payments, Level 3 Payment Processing offers a robust solution tailored specifically for business-to-business (B2B) and business-to-government (B2G) transactions. By leveraging granular transaction data, this processing level provides significant benefits, including reduced interchange fees and enhanced expense tracking capabilities.

What is Level 3 Payment Processing?

Level 3 Payment Processing facilitates transactions that capture a comprehensive set of data beyond the typical Level 1 and Level 2 transactions. This includes the following details:

• Merchant’s name and address
• Customer’s name and address
• Invoice number
• Purchase order number
• Tax amount
• Commodity code (for B2G transactions)

Benefits of Level 3 Payment Processing

Reduced Interchange Fees:

Level 3 transactions enable merchants to qualify for lower interchange fees. This is because the detailed transaction data provides greater transparency and reduces risk for card issuers.

Effective Expense Tracking:

The robust data captured in Level 3 transactions allows merchants to easily track and reconcile expenses. This simplifies accounting processes and provides valuable insights into spending patterns.

Other Advantages:

• Improved Fraud Detection: The detailed transaction data supports more accurate fraud detection mechanisms.
• Enhanced Data Analytics: Level 3 transactions provide valuable data for analysis and strategic decision-making.
• Increased Payment Acceptance: Accepting Level 3 transactions can increase payment acceptance rates, especially for high-value or recurring transactions.

How to Implement Level 3 Payment Processing

Integrating Level 3 Payment Processing requires collaboration between merchants and their payment processors. Merchants must have the capability to capture and transmit the required transaction data from their point-of-sale (POS) systems or enterprise resource planning (ERP) systems. Payment processors must support the Level 3 transaction format and provide the necessary infrastructure to process the data.

Conclusion

Level 3 Payment Processing is a powerful tool that empowers B2B and B2G merchants with reduced interchange fees, enhanced expense tracking, and a wealth of data-driven benefits. By leveraging this processing level, businesses can streamline transactions, optimize costs, and gain valuable insights into their spending patterns.