Level 3 Processing

Level 3 processing is a more detailed method of processing B2B and B2G card transactions that require even more data than Level 2. The additional data elements include, but are not limited to, the following:

  • quantities
  • product codes
  • item descriptions
  • shipping details
  • duty amount

Level 3 Processing is designed to give business and government entities as much information as possible about their purchases, facilitating better financial tracking and control. The added complexity can also help merchants qualify for reduced interchange fees for these types of transactions.

This detailed level of information helps in creating comprehensive invoice-like records of transactions, making it easier for businesses and government entities to monitor and control their spending. As with Level 2 processing, the additional data required in Level 3 processing also reduces the risk of fraud and chargebacks, leading to lower interchange fees from the card networks.