What Exactly Is Level 3 Credit Card Processing ?
With Level 3 credit card processing, all transactions require the capture of specific line item data typically around 15-20 fields. However, that number can go as high as 100 depending on the client.
Common line item details for Level 3 credit card processing include:
Commodity codes
Product codes
Item descriptions
Merchant contact info
Tax amounts
Freight amounts
Quantities and units
The Advantages of Level 3 Credit Card Processing
The most important benefit for customers who buy with Level 3 credit cards is control. By requiring all of this extra information, they can more easily restrict things like:
Who in the organization is allowed to buy
How frequently the card may be used
The size and dollar amount of each purchase
Given the sheer volume of multinational and governmental spending, such controls are necessary. They allow organizations to more carefully track where money is going and why.
However, there are several benefits for you the merchant:
You attract a very different type of clientele mainly heavy-hitters that wouldn't (or couldn't) do business with you otherwise. Many government agencies only use Level 3 credit cards for major purchases.
You also benefit from faster account settlements. With Level 3 processing, the Days Sales Outstanding (DSO) becomes shorter, allowing you to avoid unnecessary delays. This can be a huge advantage if cash flow is a concern.
You pay lower interchange fees by accepting Level 3 credit transactions. Because of all of the extra information required, fraud becomes less likely, and you’ll be reward you for helping to reduce the risk of credit card abuse.
Making Level 3 Credit Card Processing Work for You
level 3 processing isn't for everyone. Especially If you deal mostly with consumers or smaller businesses, you're probably better off with Levels 1 and 2.
Though if Level 3 is right for you, there are two additional components you should keep in mind:
While Level 3 can be more secure, it is imperative that you invest in PCI-compliant payment processing. Otherwise, you're simply exchanging one type of risk for another.
Submitting Level 3 data requires the use of specialized payment software that is accessed via a secure website application. Data is typically passed to the payment platform via integration with a merchant’s ERP system.
Getting Started With Level 3 Payments
Click on the following links to learn more about puppyloveprocessing approach to secure payment processing:
Level 3 Credit Card Processing
PCI-Compliance
Payment Integration and Modules