How to Reduce your Fees by achieving Level 3 Processing Rates with NAV-X Credit Card

You may be asking yourself what is Level 3 Processing? Level 3 credit card processing enables B2B businesses to save a substantial amount of money on credit card processing. This is achieved by giving credit card companies – like Visa or Mastercard – more information than they would give these companies to process traditional (level 1 or 2) transactions. How can you reduce your fees through Level 3 processing?

Level 3 credit card processing is one of those under-the-radar money-savers you may be leaving on the table. Credit card transactions can fall into 3 different data levels (Level 1, Level 2, and Level 3). Each level requires a certain amount of information to qualify its transactions. The higher the level is, the more details it requires. However, the higher the data level, the less it costs merchants to process transactions. This is because the more information that is available, the less likely fraud is involved. In addition, the additional data makes it easier for the customer to understand a charge on their statement. It also makes your customers less likely to dispute and/or call customer service, which is expensive.

Which level is used?

When you process a credit card, you’re placed into one of three processing categories: Level 1, Level 2, and Level 3. Level 1 has the highest rates, and Level 3 has the lowest. Through providing more line-item details with each transactions, you move up levels. Therefore, if you do much business by credit card, it is worth the time to find a solution, like NAV-X Credit Card, that can assist you with Level 3 data processing. You can reduce your fees through Level 3 processing.

Every time you process a credit card payment, you have to pay an interchange fee. The interchange fee is what credit card issuers (like Visa and MasterCard) charge for processing credit cards. The fee varies depending on card type. Interchange fees make up between 70% and 90% of total fees paid by merchants to process credit cards. Because of that, it is very important to ensure that you are processing at the highest possible level.

The different level in detail

Level 1: All B2B transactions must qualify for a minimum of Level 1 data processing. Therefore, the only data you need to provide to qualify for Level 1 processing is limited to:

  • Merchant’s name
  • Transaction amount
  • The date on which the transaction took place

Level 2: The data you need to provide to qualify for Level 2 processing is a bit more extensive. You will need to provide your payment processor with:

  • All level 1 data requirements
  • Customer code
  • Total tax amount.

Level 3: Level 3 data processing is ideal for companies that do a lot of credit card payments. However, to qualify for Level 3 you need to provide:

  • All of the data necessary for Level 1 and Level 2 plus:
  • Postal code your company is shipping from
  • Postal code your company is shipping to
  • Invoice number
  • Order number
  • Freight amount
  • Line item details of the purchase.

Will Level 3 lower my processing rates?

Level 3 processing lowers costs for businesses that accept corporate cards, purchasing cards, or government spending accounts. Therefore, NAV-X Credit Card is providing line-item details at the point of sale. Because Visa and MasterCard view the transaction as less fraudulent, it gives you access to exclusive Level 3 processing rates.

Level 3 provides the lowest payment processing fees and can reduce your fees and save your business as much as 1.5% per transaction.

How do I get Level 3 processing rates?

In order to qualify for Level 3 processing rates, NAV-X Credit Card securely passes all line-item details through a PCI-compliant payment gateway (EBizCharge) that allows you to send line-item details for each transaction. This way, the bank will approve a Level 3 transaction. However, if a merchant misses even one of these details, they will not qualify for Level 3 processing. This is why we have it set-up as a configuration within NAV-X Credit Card.

NAV-X Credit Card is already integrated with Microsoft Dynamics 365 Business Central and Dynamics NAV; therefore, invoice information and line-item details already stored in your system will automatically pass them to the point of sale. The gateway then uses these details to qualify your cards at reduced interchange rates and achieve the lowest payment processing fees for your business.

With NAV-X Credit Card and EbizCharge (our PCI-compliant payment gateway), your business can achieve Level 3 processing rates without having to do any additional work. The savings will rapidly cover any license or implementation costs.

How can I get NAV-X Credit Card?

You can get the app directly on Microsoft AppSource or from your partner. NAV-X Credit Card is available for Business Central. It is also available for Microsoft Dynamics NAV. Don’t have a partner? You can contact one of our partners or also contact us directly.

Available on Microsoft AppSource - reduce your fees with NAV-X Credit Card

Business Central Credit Card Processing by NAV-X is available on Microsoft AppSource.