Level 2 and Level 3 Processing Explained
So, you’re working in the B2B industry and haven’t moved to Level 2 or Level 2 Payment Processing so far? Do you know that you can significantly reduce interchange rates by adopting these options?
It’s completely true and it’s not the only benefit associated with Level 2 and Level 3 Payment processing but you get other benefits as well.
Want to know the additional details?
Here, we’re going to share detailed information about what is Level 2 and Level 3 Payment Processing. We’ll also highlight the important benefits to help you understand why Level 2 or Level 3 Payment processing is essential for your business. So, without any delay, let’s take a look at what is Level 2 and Level 3 Payment Processing.
Understanding Level 2 Payment Processing
Are you dealing with small or medium-sized businesses?
If so, Level 2 Payment Processing can perfectly accommodate your needs. The Level 2 Payment Processing is an ideal option to attract B2B clients who make big-ticket purchases. It’s not just beneficial for the supplier but for customers as well.
The suppliers can get a discount on transaction fees while the customers get more control over their spending. The merchants can save around 0.50% of the interchange costs when they complete a Level 2 transaction. Some of you may think that why should I take the headache of adding additional information when I’m just getting a 0.50% discount.
But if you think about it, you’d realize how much money you can save with a Level 2 Payment processing. The B2B transactions are way bigger than the traditional B2C transactions. Thus, you’d be able to save enough money on each transaction. Most importantly, you’d see a drastic change in your sales as more businesses will start reaching out to you.
The level 2 payments are also in the best interest of the credit card holders as they can set a limit for when and how the level 2 credit card can be used. They can also set a limit for each transaction. Moreover, they can set a limit for how many times the card can be used during a month.
You may be thinking about how you can qualify for Level 2 Payment Processing. Well, you need to have a secure and reliable payment gateway to process level 2 transactions. Beyond Bancard has got you covered as we can provide a fast and secure payment gateway that is best suitable for your business.
With each Level 2 transaction, you’re supposed to add additional including requestor name, purchase order number, tax amount, transaction date, merchant zip code, etc.
Businesses use this information to keep a track of where their money is being spent. They can use this information to manage their expenses in the future. And they can also eliminate the misuse of business credit cards with this information.
Understanding the Level 3 Payment Processing
The Level 3 Payment Processing is almost similar to the Level 2 transactions. You’re just supposed to provide a little bit of extra information to enjoy the benefits of these types of transactions.
But level 3 payment processing opens a world of opportunities for you. You’d now be able to entertain the bigger companies and even government institutions. The benefits associated with these types of transactions are also bigger than the level 2 transactions.
You’re going to get around a 1% discount on interchange rates for these types of transactions. You’d be surprised to know that you can save hundreds of dollars after this upgrade because you’d be receiving massive orders from several institutes.
All you need to do is sharing a bit of extra information about the order number, invoice number, Item product code, Item quantity, item description, Freight amount, duty amount, etc. The purchasing party and the credit card company may use this information for different purposes.
It’s a classic opportunity for businesses dealing with large-scale enterprises. You can save around $1,000 in fees if you process major credit card transactions of around $100,000 in a year.
Are You Eligible for Processing Level 2 and Level 3 Transactions?
Well, it depends on the type of credit card processing terminal you’re using right now. If you’re using a basic credit card terminal, you won’t be able to enjoy these benefits because these terminals can’t fetch the information required for Level 2 and Level 3 Transactions.
Fortunately, Beyond Bancard can provide you with a secure gateway for these kinds of transactions if you don’t already have one. So, feel free to contact us if you need any help.
The Level 2 and Level 3 Payment processing is a great opportunity for businesses dealing with small to medium and even large scale businesses. Businesses can save a hefty amount of money with these kinds of transactions. We’ve shared detailed information about what is Level 2 and level 3 payment processing. We’ve also highlighted the amazing benefits of these payment options. If you need more information on this topic, we’d be happy to help you out.
Need to process B2B Payments?
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