For anyone who has looked at a Visa or MasterCard interchange chart (the rate that Visa and MasterCard respectively charge the industry on every transaction), it is very easy to get lost and confused.  There are tons of categories and transaction types that can go in quite a few areas but are defined based on the industry, type of card used, and method of processing.  There are additional criteria that come into play in the form of Level 2 (sometimes seen as Level II data processing) and Level 3 (sometimes seen as Level III data processing) transactions.  

For the Level 2 and Level 3 transactions, more data is needed at the point of sale and because additional data is being offered and a merchant is properly setup as a Level 2/Level 3 participating merchant, a lower rate is applied to every transaction when the correct variables and information is offered.  These savings can be significant – for Level 2 transactions, the discount can be between 0.05% and 0.50% off of the regular charge for the given level.  Level 3 discounts are potentially even greater ranging between 0.25% and 2.50%! Those savings can amount to some serious change for the merchant who is willing to look for the right partner and ensure the correct data is entered into the point of sale system (whether via a retail system or with mail/phone/internet transactions).  The data required for a Level 2 transaction includes the customer’s 4-digit code or a PO number that may be associated with the cardholder’s account.  As long as this number is a unique number (and not all 0000 or 1111), the transaction is likely going to clear at a better rate.  Level 3 transactions require much more data and highly specialized point of sale terminals, but the savings can be worth it. The data here is basically an itemized invoice of everything purchased during the order – similar to what you may see on a credit card statement for your own business card when you shop at certain B2B stores.

At BGSIPayments, we like to think of ourselves as a partner in every business we work with – not on the profit side, but on the relationships and desire to see all of our clients continue to grow.  We strive to offer superior service and offer the knowledge and expertise that we have developed as a result of the years we have spent in the industry.  

Many salespeople are out for the quick buck and are only interested in boarding an account.  We love the fast sales too, but always look for the right solution to every account we board. That’s why we don’t often lose accounts on rate or service issues and are very proud of our retention rates. When you sign with BGSIPayments, you’re gaining a lifelong friend in the process and we go out of our way for our friends. We look forward to becoming your friend soon!

Should you require assistance in enabling Level II and Level III transactions on your POS system or internet gateway, please reach out to us and we’ll gladly attempt to help or give you a recommendation to a developer that may be in a position to assist you.