Level 2 and level 3 data are additional fields you can send with a commercial card transaction to qualify it for cheaper interchange. The card networks charge less when they receive richer data, because it reduces fraud and dispute risk. For B2B merchants the saving is often around a percentage point.
What each level requires
| Level | Fields required | Typical benefit |
|---|---|---|
| Level 1 | Standard transaction data | Baseline |
| Level 2 | Tax amount, customer reference, tax ID | Moderate reduction |
| Level 3 | Line items: description, quantity, unit price, product code, freight, duty | Largest reduction |
Level 2 is usually a small change — most systems already know the tax amount and can pass a purchase order reference. Level 3 means sending the invoice detail with the payment, which is more work but rarely difficult if you already produce invoices.
Why the networks discount it
Enhanced data serves the card issuer''s corporate customers: it lets a company see exactly what was bought on each card, feeding expense management and procurement controls. The networks pass some of that value back as lower interchange.
Is it worth doing?
- Check your card mix. If commercial cards are a small share of volume, the work will not pay back.
- Check your pricing model. On flat rate, the saving is not yours to capture.
- Start with level 2. It is a fraction of the effort and captures a real part of the benefit.
- Measure before and after. Compare your effective rate on commercial card transactions across a full month.
For a B2B business on interchange-plus with meaningful corporate card volume, this is one of the highest-return changes available — a one-off integration cost against a permanent reduction in the largest fee you pay.
GOOD QUESTIONS
Frequently asked
How much can level 3 data save?+
On qualifying commercial card transactions, often 0.5 to 1 percentage point of interchange. On a business processing $200,000 a month largely on corporate cards, that is meaningful money for a one-off integration change.
Does level 2 and 3 data help consumer cards?+
No. The enhanced data rates apply to commercial, corporate and purchasing cards only. If your customers pay with personal cards, there is nothing to gain.
Do I need to be on interchange-plus to benefit?+
Effectively yes. On flat-rate pricing you pay the same rate regardless, so any interchange saving accrues to the processor rather than to you. This is a genuine argument for interchange-plus if you are B2B.
Is it hard to implement?+
Level 2 is straightforward — a tax amount and a customer reference. Level 3 requires full line-item detail per transaction, which is more work but usually mechanical if you already generate invoices.