Level 3 Data
Level 3 data, also known as level III, emerges when companies provide detailed line item information during the purchase of an item or service, surpassing the requirements of standard credit card transactions. This data practice can significantly reduce costs for these companies.
All credit card transactions are categorized into three data levels, from 1 to 3. Credit card companies need specific information to classify transactions, and this determines their levels. Conventional transactions usually fall within level 1 or 2.
The higher the level, the more comprehensive the details needed. However, higher data levels result in lower processing costs for merchants.
Benefits of Level 3 Credit Card Processing
Level 3 credit card processing, if attainable for your business, can lead to the lowest processing fees for credit card transactions. This benefits both your business and your customers.
This holds especially true for government entities and large corporations. It enhances expenditure tracking and enables highly detailed financial reports. Additionally, it empowers organizations to impose restrictions on employees with company credit cards, discouraging misuse of company funds.
Businesses gain three main advantages from using level 3 data:
- Reduced processing fees: Due to lower fraud rates in level 3 transactions compared to levels 1 and 2, credit card providers offer reduced processing rates.
- Faster payments: Level 3 data transactions are generally processed more swiftly than level 1 or 2 transactions, addressing cash flow concerns effectively.
- Expanded customer base and sales: Many government agencies and corporations exclusively utilize level 3.
By accommodating this infrastructure, you access a broader pool of potential customers, translating to increased profits.
Written by Andrii Vovk