Level 2 and Level 3 data are enhanced transaction data fields that merchants can provide when processing corporate, business, and government purchase cards. Providing this additional data qualifies transactions for lower interchange rates from Visa and Mastercard — potentially reducing rates by 0.50%–1.50% on eligible card types.
**Level 1 data** (standard for all transactions): - Merchant name, date, amount, card number
**Level 2 data** (additional fields): - Customer PO number, tax amount and indicator, merchant tax ID, destination zip code - Interchange saving: typically 0.50%–0.70% vs. Level 1 on qualifying corporate cards - Available for: Most credit card terminals and virtual terminals can capture Level 2
**Level 3 data** (most detailed): - All Level 2 fields plus: line-item detail (description, quantity, unit price per item) - Interchange saving: 0.20%–0.50% additional vs. Level 2 - Available for: Requires specific software/gateway support, most common in ERP integrations - Best suited for: Large B2B distributors, government contractors
Which businesses benefit most from Level 2/3: - B2B distributors selling to businesses and government agencies - Government contractors - Wholesale suppliers - Any business where customers frequently pay with corporate or purchasing cards
For B2B merchants, providing Level 2/3 data on corporate card transactions can save 0.50%–1.50% in interchange. On $500,000 in annual B2B volume processed on corporate cards, that's $2,500–$7,500 in annual savings.
The challenge: many B2B merchants don't know to request this, their software doesn't support it, or they're on tiered pricing where the benefit doesn't pass through. Under interchange plus pricing, Level 2/3 savings flow directly to the merchant.
Government contractor processing $200,000/month in government purchase card transactions: - Without Level 2 data: Commercial card interchange ~2.50% = $5,000/month - With Level 2 data: Government card Level 2 rate ~1.90% = $3,800/month - With Level 3 data: Government card Level 3 rate ~1.65% = $3,300/month - Monthly savings from Level 3 vs. no enhanced data: $1,700/month - Annual savings: $20,400
Your payment terminal, virtual terminal, or payment gateway must support Level 2/3 data entry. Contact your processor to confirm compatibility and configure required fields. ERP integrations often handle Level 3 data automatically.
Corporate purchasing cards, business credit cards, and government procurement cards qualify for Level 2/3 interchange rates when the appropriate data is provided. Consumer credit cards are not eligible regardless of data provided.
Liberty Bancard configures Level 2 and Level 3 data capture for all B2B merchants. Our interchange plus pricing model means all Level 2/3 savings pass directly to you. If you accept corporate or government cards and aren't providing enhanced data, you're almost certainly overpaying. Let us audit your statement.
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