Below are some of the most common questions merchants have about level 2 and 3 data.


What is Level 2 and 3 Processing?

Level 2 and 3 processing is additional information collected at the time of sale. Due to the lower risk for collecting this data, merchants who accept level 2 and 3 data see an lower interchange rate, therefore saving money on processing fees.


How are Level 2 and 3 Solutions Implemented?

Many Level 2 and 3 solutions are implemented via a gateway (an online service that integrates with the processor). Gateways can be used for Mail Order Telephone Orders (MOTO), but many also integrate with hardware for face-to-face transactions.


Do I Need Hardware to Accept Level II and III?

In most cases, no. Gateways provide an online portal which allows merchants to accept credit card with a simple card swiper/chip reader.


Is There a Change in Business Process Accepting Level II and III?

There will be additional questions at the time of sale (i.e.- invoice number, tax category, etc) to qualify for level 2 and 3 data.


Do I Need Special Equipment or Software to Pass Level II and III Data?

Yes! And that is where Level 3 Data comes in. Some merchants require more complex gateways for shopping carts and online payments. Others simply need need a Level 3 capable terminal or online invoicing. We spend time to understand your business to offer the right solution to fit your needs.


Who Sets the Rate for Interchange?

Interchange Rates are set by the issuing banks (Visa, Mastercard, and Discover) and change periodically. You can find a sample of the latest Reimbursement Fees (Interchange Rates) set by Visa by clicking the link below.

Visa.com/interchange.pdf

Mastercard.com/interchange.pdf


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