To take advantage of lower interchange rates, you must submit Level 2 data and Level 3 data along with the transaction. This ensures the customer’s card brand network can receive and assess the data to determine which interchange rate the transaction will receive.
If you’re not sure what data each interchange level requires, visit Understanding Interchange Data Requirements.
Get Started
Before you begin submitting Level 2 or Level 3 data, we recommend checking each card’s Level 2 and Level 3 processing eligibility. This process involves tokenizing the card and checking its bank identification number (BIN) for information about the card brand and card type.
The method described in this guide focuses on using the Create Payments page. However, you can also capture and submit Level 2 and Level 3 data using other methods like Invoices.
Create a Card Token
To create a token for the new customer:
Select Create Payment in the left navigation panel.
Create a Sale or Authorization Only transaction.
Select Save Customer Info.
Click the Customer Details and enter the customer contact information.
Click Process Payment and enter the card details.
Click Pay to complete the transactions.
Result: The card payment is tokenized and can be reviewed for interchange data qualification.
To create a token for an existing customer:
Select Customers in the left navigation panel.
Select the relevant Customer to access their Customer Profile.
Select Payment Methods in the Customer Profile left menu.
Click Add Credit Card and enter the required details.
Click Save Payment.
Result: The customer’s card has been tokenized and can be used to quickly identify essential information about the card brand, card type, and BIN information.
Identify the Card Type
Visa and MasterCard are the only card brands that can receive additional data to influence their interchange rates. In contrast, American Express and Discover don’t offer direct data submission options for Level 2 or 3 data to obtain lower interchange rates. As a result, we recommend verifying the card brand before submitting data with the intention of reducing interchange rates.
To identify the card type:
Access the Payment History page on the left navigation panel.
Select the relevant transaction.
Click the Payment Details tab on the Transaction Details page menu.
Result: The Card Type, BIN, and BIN Type values are displayed to help you determine if the card brand network supports lower interchange rates or Level 2 or Level 3 data submissions before submitting the additional data with a payment transaction.
Ineligible Merchant Types for Level 2 and Level 3 Interchange Rates
Ineligible MCCs | Descriptions of Merchant Type |
|---|---|
3000–3999 | Airlines/Car Rental Companies/Hotels |
4112 | Passenger Railways |
4411 | Steamship and Cruise Lines |
4468 | Marinas, Marine Service, and Supplies |
4511 | Airlines and Air Carriers |
4722 | Travel Agencies and Tour Operators |
5499 | Miscellaneous Food Stores - Specialty Markets and Convenience |
5541 | Gas/Service Stations with/without Ancillary Services |
5542 | Automated Fuel Dispensers |
5812 | Eating Places and Restaurants |
5814 | Fast Food Restaurants |
5962 | Direct Marketing – Travel Related Arrangements Services (High Risk) |
5966 | Direct Marketing – Outbound Telemarketing Merchant (High Risk) |
5967 | Direct Marketing – Inbound Teleservices Merchant (High Risk) |
5983 | Fuel Dealers - Fuel, Oil, Wood, Coal, Lique |
7011 | Lodging – Hotels, Motels, and Resorts |
7512 | Automobile Rental Agency |
7513 | Truck & Utility Trailer Rentals |
Submit Level 2 and Level 3 Data
To submit Level 2 and Level 3 data, you must use Create Payments, Invoices, or an integrated payment page like PayFrame.
Submit Level 2 Data
To submit Level 2 transaction data using the Create Payments page:
Select Create Payment in the left navigation panel.
Enter all applicable data.
Under Customer Details, select Submit this transaction as LEVEL 2 PROCESSING to reveal Level 2 fields.
Enter the TAX and ORDER NUMBER values.
Note: If the entity is tax-exempt, you may enter 0. See the steps below to enable tax-exempt status.
Note: If you are not a tax-exempt entity, you must adhere to Visa, Mastercard, and local government sales tax rates and regulations to receive lower Level 2 interchange rates.
(Optional) Follow the steps below to also include Level 3 data.
Click Process Payment to complete the submission.
Submit Level 3 Data
To submit Level 3 transaction data using the Create Payments page:
Complete steps 1 through 3 from the Submit Level 2 Data section.
Select Submit this transaction as LEVEL 3 PROCESSING (All fields must be completed) to reveal Level 3 fields.
Enter the SHIPPING AMOUNT, DUTY AMOUNT, and ORDER DISCOUNT value.
Under Order Items, enter the DESCRIPTION, COMMODITY CODE, PRODUCT CODE, ITEM PRICE, ITEM DISCOUNT, QUANTITY, UNIT OF MEASURE, and ITEM TOTAL for each item.
(Optional) Add additional Order Items as needed by clicking Add Item at the bottom of each new item form. Each additional item must have all the fields above for Level 3 Transaction Processing.
Click Process Payment to complete the submission.
Enable Tax-Exempt Status
Non-profit and Governmental entities that qualify for tax-exempt status can apply this setting to their platform entity. This provides the proper mapping for Level 2 data submission when tax amounts are set to 0%.
Important!
To display the Parameters tab and Auto Tax Exempt Enabled parameter for your Groups, contact your Partner Success Manager to enable visibility.
To apply tax-exempt status to non-profit entity groups from the Groups page:
Select Groups in the left navigation panel.
Select or add a new Group and access the Group Profile page.
Select the Parameters tab, then click ADD PARAMETERS.
Click the edit icon and select Auto Tax Exempt Enabled.
Click the confirm icon to save.
Return to the Group Profile page, then click ADD MEMBERS to add the Merchant as a Member.
Click Save.
Result: Each Merchant enrolled as a Member of your Tax-Exempt Group receive the same tax-exempt status allowing you to easily add new Merchants with the same status.
Tax Exempt Exceptions
A tax-exempt merchant can qualify for Level 3 rates for both MasterCard and Visa.
Important!
Visa does not allow tax-exempt Merchants to qualify for Level 2 interchange regardless of MCC code.
MasterCard allows the MCCs listed in the following table to qualify for Level 2 interchange rates if the business is 100% tax-exempt:
Tax Exempt MCC Exceptions | Type / Description |
|---|---|
4111 | Transportation—Suburban and Local Commuter Passenger, including Ferries |
4131 | Bus Lines |
4215 | Courier Services |
4468 | Marinas, Marine Service/Supplies |
4784 | Bridge and Road Fees, Tolls |
5499 | Misc Food Stores |
5541 | Service Stations |
5542 | Automated Fuel Dispenser |
5983 | Fuel Dealers |
8211 | Elementary and Secondary Schools |
8220 | Colleges |
8398 | Charities |
8661 | Religious Orgs |
9211 | Court Costs |
9222 | Gov’t Fines |
9311 | Tax Payments |
9399 | Gov’t Services Not Elsewhere Classified |
9402 | Gov’t Postal Services |