Advanced Payment Processing

Payment processing is categorized into Level 1, Level 2, and Level 3, each serving distinct purposes and having specific requirements. Level 1 processing demands the least amount of data, whereas Level 3 requires the most. Major credit card companies revise their rates and data requirements annually in April and October.

Having more detailed information about a transaction facilitates easier tracking, verification, accounting, and enhances fraud prevention, which is crucial for large B2B and B2G entities. Consequently, Level 2 and Level 3 transactions typically come with lower interchange rates, providing savings that can be used to attract buyers or increase profits.

Level 2 and Level 3 processing is important for a many merchants, regardless of their industry. With this in mind, let’s explore each level in more detail and understand the significance of advanced processing for both merchants and independent sales organizations (ISOs).