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What is it? Payment transactions made with a card are categorized into Level 1, Level 2, and Level 3 based on the specific data required during processing. Levels 2 and 3 data impact interchange fees and are primarily used for business-to-business (B2B) and government transactions, but can be sent on any transaction, even those that won’t qualify for the level 2 and 3 interchange rates.

Level 1 The most basic level. It’s seen on most consumer transactions, and carries the highest processing costs. Transactions qualifying for level 1 include basic payment data like card number, card security code, amount, transaction date, acceptor, and merchant category code (MCC).

Level 2 Suitable for corporate card transactions, level 2 offers lower interchange fees than Level 1 because it requires additional transaction details to reduce risk. Depending on the card brand, level 2 data includes taxes, customer details, and ship to information, in addition to the level 1 information.

Level 3 The most detailed level and suitable for B2B and government transactions, level 3 allows you to qualify for several different B2B interchange categories. Level 3 includes all level 2 fields, plus extensive line item details like product code, commodity code, unit amounts and quantities, duties, shipping amounts, and more.
In summary, providing more information on a transaction can increase its “level” and help businesses save on processing fees by providing more transparency to card networks. You are allowed to send level 2 and level 3 data on any transaction, even if the transaction does not qualify for the level 2 or level 3 interchange rate.
When to Use
  • You want to qualify for lower interchange rates on eligible transactions.
  • You have detailed transaction information available (tax amounts, line items, etc.).
ScenarioBen’s company purchases 10 custom mechanical keyboards from CoolTechGear.com for $2,000. To qualify for lower interchange rates, CoolTechGear.com includes Level 3 data with the transaction, such as tax information, shipping details, and line items for each keyboard model with its specific switches, keycaps, and customizations.

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Restrictions

Level 2 is supported by Visa, Mastercard, and American Express. Level 3 is supported by Visa and Mastercard.The following MCC codes are restricted from Level 2 and 3 processing:
  • 3000-3299, 4511 - Airlines (Visa/Mastercard)
  • 3351-3500, 7512 - Car Rentals / Auto Rental (Visa/Mastercard)
  • 7519 - Car Rentals (Mastercard)
  • 4411 - Cruise Lines (Visa)
  • 4112 - Passenger Railways (Visa/Mastercard)
  • 5962, 5966, 5967 - High Risk Direct Marketing (Visa)
  • 3501-4010, 7011 - Hotel (Visa/Mastercard)
  • 5812 - Restaurants (Visa/Mastercard)
  • 5814 - Fast Food Restaurants (Visa)
  • 4722 - Travel Agents (Visa)
  • 7513 - Truck and Utility Trailer Rentals (Visa/Mastercard)
  • 8398 - Organizations, Charitable and Social Service (Level 3 restriction: Mastercard not eligible)
  • 4468 - Marine Service & Supplies (Level 3 restriction: Fleet Mastercards not eligible)
  • 5541 - Service Stations (Level 3 restriction: Fleet Mastercards not eligible)
  • 5542 - Automated Fuel Dispensers (Level 3 restriction: Fleet Mastercards not eligible)
  • 5499 - Misc. Food, Convenience, & Specialty Markets (Level 3 restriction: Fleet Mastercards not eligible)
  • 5983 - Fuel Dealers (Level 3 restriction: Fleet Mastercards not eligible)

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Implementation

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Level 2

To qualify for level 2, you must provide the following information on the authorization and capture:
{
  "transactionAmountDetails": {
  "totalTaxAmount": "",
  "localTaxAmount": "",
  "nationalTaxAmount": ""
},
  "orderDetails": {
  "customerDetails": {
  "reference": "",
  "firstName": "",
  "lastName": "",
  "email": "",
  "phoneNumber": ""
},
  "shipToAddress": {
  "address1": "",
  "state": "",
  "postalCode": "",
  "countryCode": ""
}
}
}

​
Level 3

To qualify for level 3, you must provide everything for level 2 as well as the following:
{
  "transactionAmountDetails": {
  "DiscountAmount": "",
  "ShippingAmount": "",
  "DutyAmount": ""
},
  "lineItems": [
{
  "productSku":"8675310",
  "commodityCode": "12",
  "productCode": "24",
  "description": "LineItem1",
  "unitQuantity": "1",
  "unitOfMeasure": "feet",
  "unitPrice": "11",
  "discount": { "amount": "1" },
  "lineItemAmount": "10"
},
{
  "productSku":"8675311",
  "commodityCode": "10",
  "productCode": "20",
  "description": "LineItem2",
  "unitQuantity": "2",
  "unitOfMeasure": "feet",
  "unitPrice": "6",
  "discount": { "amount": "2" },
  "lineItemAmount": "10"
}
]
}
Level 2 Request
Operation
mutation AuthorizeCITWithLevel2($input: AuthorizeCustomerInitiatedTransactionInput!) {
  authorizeCustomerInitiatedTransaction(
    authorizeCustomerInitiatedTransactionInput: $input
  ) {
    authorizationResponse {
      status: __typename
      cardDetails {
        paymentBrand
        last4
      }
      tokenDetails {
        token
      }
      transactionId
      paymentId
    }
    errors {
      ... on Error {
        message
        __typename
      }
    }
  }
}
Variables
{
  "input": {
    "acceptorId": "05a39b14-f29f-443b-a107-da3e3e8969fb",
    "transactionReference": "68448abe-735b-4ee3-af14-d0f50a091c9b",
    "paymentMethodDetails": {
      "cardWithPanDetails": {
        "expirationMonth": "09",
        "expirationYear": "2051",
        "accountNumber": "5188690009946204",
        "paymentEntryMode": "PAYMENT_METHOD_ON_FILE",
        "paymentChannel": "ECOMM",
        "securityCode": {
          "omissionReason": "VERIFICATION_NOT_REQUESTED"
        }
      }
    },
    "transactionAmountDetails": {
      "totalAmount": 100.99,
      "localTaxAmount": "1.99",
      "nationalTaxAmount": "2.99",
      "currency": "USD"
    },
    "orderDetails": {
      "customerDetails": {
        "reference": "ABC12345",
        "firstName": "Michael",
        "lastName": "Scott",
        "email": "mscott@office.com",
        "phoneNumber": "6178675309"
      },
      "shipToAddress": {
        "address1": "702 N Washington Ave",
        "city": "Scranton",
        "state": "PA",
        "postalCode": "18509",
        "countryCode": "USA"
      }
    }
  }
}
Level 3 Request
Operation
mutation AuthorizeCITWithLevel3($input: AuthorizeCustomerInitiatedTransactionInput!) {
  authorizeCustomerInitiatedTransaction(
    authorizeCustomerInitiatedTransactionInput: $input
  ) {
    authorizationResponse {
      status: __typename
      cardDetails {
        paymentBrand
        last4
      }
      tokenDetails {
        token
      }
      transactionId
      paymentId
    }
    errors {
      ... on Error {
        message
        __typename
      }
    }
  }
}
Variables
{
  "input": {
    "acceptorId": "05a39b14-f29f-443b-a107-da3e3e8969fb",
    "transactionReference": "68448abe-735b-4ee3-af14-d0f50a091c9b",
    "paymentMethodDetails": {
      "cardWithPanDetails": {
        "expirationMonth": "09",
        "expirationYear": "2051",
        "accountNumber": "5188690009946204",
        "paymentEntryMode": "PAYMENT_METHOD_ON_FILE",
        "paymentChannel": "ECOMM",
        "securityCode": {
          "omissionReason": "VERIFICATION_NOT_REQUESTED"
        }
      }
    },
    "transactionAmountDetails": {
      "totalAmount": 100.99,
      "DiscountAmount": "1.00",
      "ShippingAmount": "2.00",
      "DutyAmount": "0.99",
      "currency": "USD"
    },
    "lineItems": [
      {
        "productSku": "8675310",
        "commodityCode": "12",
        "productCode": "24",
        "description": "LineItem1",
        "unitQuantity": "1",
        "unitOfMeasure": "feet",
        "unitPrice": "11",
        "discount": {
          "amount": "1"
        },
        "lineItemAmount": "10"
      },
      {
        "productSku": "8675311",
        "commodityCode": "10",
        "productCode": "20",
        "description": "LineItem2",
        "unitQuantity": "2",
        "unitOfMeasure": "feet",
        "unitPrice": "6",
        "discount": {
          "amount": "2"
        },
        "lineItemAmount": "10"
      }
    ]
  }
}
Response
{
  "data": {
    "authorizeCustomerInitiatedTransaction": {
      "authorizationResponse": {
        "status": "AuthorizationApproval",
        "networkApprovalCode": "808907",
        "authorizationAmountDetails": {
          "approvedAmount": 36,
          "requestedAmount": 36,
          "currency": "USD"
        },
        "cardDetails": {
          "paymentBrand": "VISA",
          "last4": "0005"
        },
        "tokenDetails": {
          "token": "ae1d0699-a5f3-4548-aaa8-068b57564118"
        },
        "transactionId": "c0b554b8-7819-11ee-acb0-7445f363cd81",
        "paymentId": "c0b554b8-7819-11ee-acb0-7445f363cd81",
        "systemTraceAuditNumber": "808040",
        "networkResponseDetails": {
          "processorResponseCode": "A0000",
          "networkResponseCode": "00"
        },
        "avsResponseDetails": {
          "networkCode": null
        }
      },
      "errors": null
    }
  }
}