Payment Processing

How Can B2B Merchants Benefit from Level 2 and 3 Processing?

Gigi Beyene
SVP, US Partners

All credit and debit transactions collect information from the card used for payment, but not all transactions provide the same level of data. If you make B2B sales, your customers will expect your system to process additional information so they can better track and protect their spending. If you do not currently have that payment processing capability, you are leaving some of your most lucrative sales potential behind.

Understanding Level 2 and 3 Processing

Every card payment that a business makes provides some cardholder information:

  • The merchant's DBA name
  • Transaction amount
  • Transaction date

This helps track purchases to some extent, but over a business' annual spending habits, it becomes difficult to audit or analyze. For this reason, many government and business customers set debit and credit cards up to provide additional information. Level 2 processing captures data, including a tax ID, tax amount, customer ID, and merchant postal code. This helps narrow down sources of spending and tax information. Beyond this, level 3 processing provides invoice codes and line-item commodity codes to help understand purchases in far greater detail.

Enhanced Reporting & Lower Interchange Rates

Reporting capabilities make a big difference to your corporate and government customers, many of whom require level 3 processing before they will purchase from you. They can run reports to track and analyze spending to continue improving their bottom line. That improvement comes from more than just reporting, though. If you process level 2 and level 3 payments, you save your customers money. Because of the level of data provided, it makes these purchases easier to verify, which can help lower interchange rates. Volume purchases thus make more sense for B2B customers under those parameters.

Increased Security & Fewer Chargebacks

In providing those benefits to your B2B customers, you gain benefits for your bottom line as well. Those large volume purchases add up quickly, bolstering your revenue stream in ways B2C sales will seldom allow. In addition, enhanced data makes these payments more secure than level 1 processing, which means you gain both faster account settlements for purchases and fewer chargebacks than a typical level 1 processing will generate. You gain greater revenue with less risk, creating a win for everyone involved.

Power Up with Nuvei’s Payment Gateway

Nuvei’s proprietary payment gateway makes it easy for you to upgrade your processing capabilities to include level 2 and level 3 processing. Not only do we help you transition to accepting these payments, but we provide autofill technology for the data collected, letting you generate reports quickly and easily.

If you are looking to partner with a provider with the fintech edge to reduce chargebacks and optimize payment processing fees for B2B operations, contact us today to learn how we can help.

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Gigi Beyene
SVP, US Partners
With Nuvei since 2007, as an expert in strategic channel development and partnership management, Gigi’s collaborative techniques and leadership have helped ISOs both launch and grow successful merchant portfolios.

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