Level 3

Lower Interchange Rates through Information and Tech

Visa and MasterCard have created specific issued card types that help corporations monitor and track spending by collecting a set of additional line-item details.  These card types are categorized and defined as Level 3 cards.  

Level 3 cards allow a business to stay on top of their spending, ensuring that their funds are best utilized to further operations.

If processed correctly, Level 3 interchange can be 1.00% lower than their standard counterparts!

However, in order to gain access to beneficial Level 3 rates, a merchant is required to input a fair amount of information on each transaction. In addition, only certain gateways can accommodate for Level 3 data.  

If a Level 3 capable gateway or software is not used, these card types come with some of the highest interchange fees in the industry ranging from 2.5% - 3.5%.

Case Study: Building Materials Industry

  • The building materials distribution industry is comprised mostly of Business-to-Business customer relationships.
  • According to Visa and MasterCard data a large percentage of these distribution customers pay with Purchasing Cards, Corporate Cards, and Business Cards.
  • These card types make up what the Credit Card industry refers to as Level 3 transactions.

These card types come with some of the highest interchange fees in the industry, ranging from:

2.5% - 3.5%

There are several software and hardware products on the market you can purchase to help reduce these higher interchange rates. These products do come with a cost, typically additional and monthly fees, and additional data entry by yourself.

The extra data entry, up to 15 required data fields with every transaction, makes the Level 3 cost reduction cumbersome to achieve.

Level 3 Card Acceptance Automation

CLARUS Merchant Services has worked with our processor to create automated Level 3 card acceptance, eliminating the extra data entry requirement.

To you, the benefit and what this means:

  • Removing the need for you to spend time collection extra data from your customers.
  • Removing the need for you to purchase and use additional hardware, software, or gateways.
  • And most importantly, automated savings.

Simply put, this equates to a rate reduction and lowering your business expense without changing how you accept payments today.













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