Interchange and Card Network Fees
Level II Data and Interchange Savings
Understanding Level II data and how it impacts interchange fees is essential for businesses looking to reduce their merchant processing costs. Level II data refers to additional transaction details provided during payment processing, such as tax amounts and customer codes, which help card networks categorize transactions more accurately and often qualify them for lower interchange rates.
What is Level II Data?
Level II data includes enhanced information beyond basic cardholder and transaction details. This data typically contains purchase order numbers, sales tax amounts, and customer codes. When merchants submit Level II data with their transactions, card networks can apply reduced interchange rates, resulting in potential savings on processing fees.
Benefits of Providing Level II Data
- Lower interchange fees due to more accurate transaction classification
- Improved transaction transparency and reporting
- Enhanced reconciliation with detailed purchase information
- Potential eligibility for special card network programs and incentives
To take advantage of Level II data savings, ensure your payment processing system supports capturing and submitting this information. Many modern point-of-sale systems and payment gateways offer Level II data capabilities.
How Merchant Statement Scanner Helps You Save
Merchant Statement Scanner analyzes your processing statements to identify opportunities for interchange savings, including those related to Level II data. By scanning your PDF statements, the software highlights where Level II data could be better utilized or where you might be overpaying due to missing or incomplete data submissions.
Practical next steps include reviewing your current payment processing setup to confirm Level II data capture, using Merchant Statement Scanner to analyze your statements, and consulting with your payment processor about enabling or optimizing Level II data submission.
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