Level 2 and Level 3 Data
Level 2 and Level 3 data are enhanced transaction details transmitted during card payment authorization that qualify B2B transactions for lower interchange rates from Visa and Mastercard.
Standard card transactions transmit basic data — card number, amount, merchant category. Level 2 data adds purchase order number, tax amount, and customer code. Level 3 data adds full line-item detail — product codes, quantities, unit prices, freight, and duty information.
Why it matters: Visa and Mastercard offer significantly lower interchange rates for B2B card transactions when Level 2 or Level 3 data is transmitted. The discount is typically 30–50 basis points on qualifying transactions — because richer data reduces fraud risk and enables better corporate expense management.
Who benefits: any program processing significant B2B card volume. Healthcare platforms, ERP-integrated payment programs, AP automation, procurement platforms, and any platform where commercial cards are used for business purchases.
Who misses it: most processors don't transmit Level 2/3 data by default. Flat-rate processors like Stripe don't offer the interchange benefit regardless. PayFac programs often don't configure it. The result: an estimated $216K–$360K annually in uncaptured economics for programs running $5M monthly B2B card volume.