Level 3 Processing

Level III processing solutions require a payment gateway, and gateway selection will impact interchange fees, some more positively than others. The demo below shows how in just one click, merchants can qualify for level 3 retail.

level 3 processing gif

Business-to-business (B2B) and business-to-government (B2G) entities benefit from level 3 processing only if merchants follow rules and transactions properly qualify for level III interchange rates.

Merchants processing choices:

1. Keep your existing merchant processor, with no changes to deposits, and we'll provide you with the tools needed for optimal level 3 processing. Below are screenshots from actual merchant statements using two different virtual terminals on the same First Data merchant account.The merchant was using the First Data e4 Global Gateway (now called Payeezy), which does support level 3 processing, but that doesn't mean merchants will qualify correctly for level 3 interchange rates.

level 3 interchange rate

In the above example, the processor profit remained exactly the same, however, the merchant paid a lot less! How is this possible? Why aren't processors helping their merchants? The reality is, many of our customers are told it's not possible. As thousands of merchants have already learned, they're wrong.

2. A new merchant account which supports level 3 processing, and the tools, including virtual terminal and payment gateway, needed for optimal interchange management.


Level III Processing Integrated Solution Examples

While merchants can achieve level III processing without special software, an integrated solution may offer more efficiencies. Most of our solutions have a virtually instant ROI without capital investment.

Quickbooks Level III processing- Process payments without leaving Quickbooks. All the functions of QB, including assign payments to invoices or sales receipts, but with a lower cost merchant account.

Electronic Invoicing: CenPOS, Bill & Pay, Quickbooks (hybrid solution with regular merchant account)

Ecommerce shopping carts with level III processing: Prestashop, Magento, 3DCart, PDG, and more. Contact us directly for modules which are not listed in the plugin stores.

ERP: OpenBravo, OpenERP, INFORMEDIATE, infor (some limitations), SAP ERP, Oracle, Microsoft Dynamics AX

Online Payments: Wordpress Gravity Forms, Woocommerce, any custom forms

POS: OpenBravo, ADP Dealer Services

Level III Processing Knowledge Center:

Level 1, Level 2 and level 3 data are general descriptors for the type of information required to qualify for interchange rates applicable to business, corporate, and purchasing cards. Level 3 data can reduce costs over 1% for merchants in qualified businesses.

Level 3 Processing requires these elements:

  1. Credit card processor that supports level 3. Not all processors do. Examples: First Data, Chase Paymentech, and Vantiv (formerly Fifth Third) all support level 3 credit card and debit card processing.
  2. Price plan that allows merchant to participate in level 3 processing. This is called interchange plus or pass through interchange pricing.
  3. A system to transmit the required data i.e. a payment gateway. Not all gateways do. Examples: CenPOS, First Data Global, Authorize.net, 3Delta, and Paymentech Orbital are capable of transmitting level 3 data, but their gateway and associated virtual terminals function and operation methods vary widely.
  4. Proper set up of all elements above, which is subject to human error.
  5. Compliance with additional interchange rules.
  6. If retail, US EMV certification must also include level III. As of November 2015, CenPOS is the only acquirer & software agnostic company to have it.
level 3 payment gateway

level 3 enhanced data

Example interchange rate difference for level 1, level 2 and level 3:

mastercard interchange table header
data rate 1 and 2 interchange
commercial data rate 3

From the illustration above, it's easy to see financial advantages for supplying level 3 data and meeting other requirements. This is one example, there are hundreds of different rates.

Level III FAQ:

What level 3 services do you provide? Everything a merchant needs. You MUST change to our gateway and virtual terminal.

Can I integrate to my ERP, accounting or other software? Yes.

Do you offer level 3 processing with electronic bill payment? Yes.

Do you offer level 3 processing with US EMV retail? Yes.

Can my lockbox company use it? Yes. Merchants have total control over enterprise user permissions and access.

Does your gateway support checks and ACH? Yes. Even your lockbox company.

Do you offer a free trial? Yes.

Will you talk to my software company to integrate? Yes. Contact Christine Speedy (954) 942-0483

How do you charge for services? Fees are via ach once per month. Fees are quoted on a per volume basis.

Can I keep my merchant account? Yes. For maxumum financial savings, you'll need interchange plus pricing and a merchant provider that offers level III processing such as First Data. Chase Paymentech, Vantiv, Global Payments, and Bank of America merchant services.