Level 2 Processing

Understand what Level 2 is and how certain transactions qualify.

When merchants accept customer credit cards, the most common type of transaction is a Level 1 transaction. These transactions require very little data, such as the Transaction Amount, Date, Credit Card information.


Qualifying transactions are rewarded with lower interchange rates if they choose to participate in Level 2 processing by collecting and sending additional information known as Enhanced Data. Only Commercial (business, corporate, purchasing) and Government cards are eligible for Level 2 processing requirements.

 

This information can be sent back to the corporation or entity that provided the card and makes the reporting on their card purchases much more detailed, reducing the amount of risk associated with the transaction. Card brands can then use detailed reporting as a selling point for their corporate card programs, as they have incentivized merchants to gather that data for them.

 

Enhance your residual optimization by integrating Level 2 through Stax' API and further monetize payments within your app.


Level 2 Requirements

Level 2 requires only a few pieces of data beyond the requirements of Level 1 transactions and providing this information yields an interchange reduction of up to 0.50%. Transactions must be taxable and the tax rate must be between 0.1% and 30%. 

Below are the additional required fields for Mastercard and Visa:

  • Customer Code or PO Number
  • Tax Amount 
  • Shipping Amount

Please see the associated API DocSite article for more information on integrating Card-Not-Present Level 2 Processing.

 

Contact your Partner Success Manager directly to discuss if Level 2 processing is right for you.