Whenever your business brings on a new merchant account, the account is assigned one of three credit card processing levels: Level 1, Level 2, or Level 3. Processing levels are determined by the amount of data collected for each transaction, with Level 1 payment processing requiring the least amount of card data and Level 3 requiring the most. If your business primarily transacts with other businesses and you aren’t taking advantage of Level 2 and Level 3 credit card processing, you could be overspending on interchange fees. Group ISO can equip your business to handle Level 2 and Level 3 data processing. Read more to find out how!

Group ISO Makes Level 2 and Level 3 Processing Simple

Group ISO offers automated credit card processing solutions that allow your business to collect Level 2 and Level 3 data for every transaction without any additional effort on your part. From standalone credit card terminals to gateways, Group ISO can design a Level 2 and Level 3 credit card processing solution to meet the specific needs of your business. Once implemented, you will begin witnessing savings of up to 0.50% compared to the standard rate. As a business owner, you understand every dollar counts. Save more with Group ISO.

Level 1 Processing (Level 1 Card Data)

Level 1 Processing (Level 1 Card Data)

The majority of businesses will be processing under Level 1. 

Business-to-consumer (B2C) merchants such as retail shops, e-tailers, restaurants – essentially, any businesses that take a majority of consumer credit card payments. Level 1 processing only requires that the data include the merchant name, transaction code, and transaction date.

Level 2 Processing (Level 2 Card Data)

Level 2 Processing (Level 2 Card Data)

Business-to-business (B2B) merchants will likely fall under the Level 2 category. These merchants will be accepting business, corporate, and purchasing cards. At this level, the amount of information needed is greater than Level 1 processing. This includes the standard information required for Level 1 processing as well as data such as merchant zip code, customer code, sales tax, etc.

Level 3 Processing (Level 3 Card Data)

Level 3 Processing (Level 3 Card Data)

Like Level 2 processing, merchants that achieve Level 3 processing are going to be accepting a large amount of commercial cards and/or government cards from businesses and government agencies (B2G). The difference between the two is again, the amount of data/information requirements, with Level 3 processing demanding the most additional data points. Under Level 3 processing, merchants get the best rate by providing all data points of Level 1 & 2 processing as well as the below Level 3 processing data points.

Smiling man using a tablet

Level 3 (including Level 2) Level 3 interchange rates are up to a full 1.00% lower than their standard

  • Ship-From Zip Code
  • Destination Zip Code
  • Invoice Number
  • Order Number
  • Item Product Code
  • Item Commodity Code
  • Item Description
  • Item Quantity
  • Item Unit of Measure
  • Item Extended Amount
  • Freight Amount
  • Duty Amount

ERP / Accounting Software Integration

Many Level 2 and Level 3 processing-qualified merchants will find it beneficial for their companies to integrate the merchant account to their ERP/accounting software, such as Sage® and QuickBooks™. Group ISO makes the integration seamless.

Get a Clearer Picture of how Interchange Rate Savings Impact your Business with ERP/CRM Integration 

Group ISO is not only a provider of payment acceptance technology. Our Level 2 and Level 3 data processing solutions integrate with your CRM and ERP systems to offer you unimpeded visibility into where your money comes from and where it is going. You’ll also be able to access insights you can use to make critical business decisions. Schedule a free consultation today with Group ISO to learn more about our services!

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