Level 3 Credit Card Processing with Paragon Payments

Introduction:

Level 3 credit card processing is a crucial aspect of payment transactions, especially for businesses engaged in B2B transactions. This advanced processing level provides enhanced data security, reduced interchange fees, and increased transparency in financial transactions.

What is Level 3 Processing?

Level 3 credit card processing is an advanced form of payment processing that involves the transmission of detailed transaction data beyond the standard information captured during Level 1 and Level 2 processing. While Level 1 and Level 2 transactions are common in consumer transactions, Level 3 is primarily designed for business-to-business (B2B) transactions.

Benefits of Level 3 Processing:

Lower Interchange Fees:

One of the key advantages of Level 3 processing is the potential for lower interchange fees. By providing additional details about a transaction, businesses may qualify for reduced fees, making this processing level particularly cost-effective for B2B transactions.

Enhanced Data Security:

Level 3 processing involves the transmission of detailed line-item information, including product descriptions, quantities, and other pertinent data. This not only provides a more comprehensive view of the transaction but also enhances security by reducing the risk of fraud.
Increased Transaction Transparency:

With Level 3 processing, businesses gain greater insight into their transactions. Detailed line-item information allows for better tracking of purchases, inventory management, and improved overall financial reporting.

Requirements for Level 3 Processing:

Set up your products to have a commodity code (from NIGP). See code listed here.

Edit each product to add a code.

Level 3 details are sent automatically when you process a payment containing enough details. Details sent are line items of invoices or orders, commodity code, part number and description, unit price, unit name, quantity, line item total, total taxes and discounts.

Transactions processed through level 3 will be listed separately in your Paragon Payment statements.