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With credit card transactions, Level II and Level III different levels of data submission is are critical for businesses engaged in different types of transactions. Major card brands Visa & MasterCard, each have specific requirements that merchants must adhere to to offer the best interchange rates. (American Express and Discover do not offer Level III data submission for interchange rates at this time).

Below is a breakdown of the key data required for Level II and Level III data submission for each card brand.

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There are three levels of interchange data submission available:

Major card brands Visa & MasterCard each have specific requirements that merchants must adhere to to offer them the best interchange rates. American Express and Discover do not accept direct Level II or Level III data submissions for lower interchange rates at this time.

Below is a breakdown of the key data required for Level II and Level III data submission for each card brand.

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Once you are familiar with these requirements, visit <<Submit Level II & III interchange data article>> to learn the different methods available to submit this data.

Visa

Below is a list of Visa qualifying card types, interchange requirements, and prohibited merchant types (MCCs).

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Level II data must include all Level I data requirements in addition to the requirements listed below.

Sales Tax Information - Sales tax information for each transaction including:

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Sales Tax Amount

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The total amount of sales tax applied to the transaction.

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Sales Tax Indicator

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Specify whether sales tax is included in the transaction amount or not.

Merchant Information - Details about the Merchant selling the product or service items including:

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Customer Code

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The unique identifier assigned to customers or entities within the Merchant’s records.

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Merchant Zip Code

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The zip code where the Merchant’s business is located.

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Merchant TIN

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The tax identification number issued to the Merchant by their governmental tax agency.

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Level III data must include all Level II data requirements in addition to the requirements listed below.

Line Item Details - Must provide detailed information for each item listed in a transaction including:

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Discount Amount

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Monetary reductions applied to the transaction total.

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Discount Per Line Item

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Monetary reductions applied to the product or service price for the line item.

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Invoice number

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A unique identifier for the transaction's associated customer invoice.

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Item Commodity Code

Standardized numerical 7-digit NIGP commodity code used to classify products for customs.

Attached is a partial list of available 7-digit codes.

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Item Description

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A detailed description of the product or service sold.

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Line Item Total

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Total transaction line item cost, calculated with quantity, unit price, discounts, tax, and shipping.

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Order number

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A unique identifier for the transaction's associated order within your business.

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Product Code

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A unique identifier used by the Merchant business to identify the specific product.

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Quantity

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The number of units sold.

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Unit Price

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The price per item unit.

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Unit of Measure

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A standardized unit used to quantify the quantity of the product or service.

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Unit of Cost

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A standardized unit used to measure the cost of a single unit.

Shipping & Customs Details - Must provide shipping, duty, and tax information (if applicable) including:

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Duty Amount

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The monetary value of customs duties or taxes related to product import and export.

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Shipping Amount

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The cost associated with transporting products from Merchant to customer.

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Shipping Destination Country

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The country of the address where purchased products will be delivered.

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Shipping Destination Zip Code

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The postal code of the address where purchased products will be delivered.

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Shipping Origin Zip Code

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The postal code of the address where the purchased products were shipped from.

Large Ticket transactions refer to transactions with a larger total dollar amount.

Based on the transaction amount, your interchange rate may change to offer better pricing from Visa’s large ticket program for high-dollar-value transactions.

Visa

In addition to the parameter qualifications below, Visa also requires the following conditions to be met from Merchants before they can submit Level II or Level III data for lower interchange rates:

1. Merchants must process 1 to 6 million Visa transactions per year.

2. Merchants must process between $20,000 and $1,000,000 in e-commerce transactions per year.

3. Merchants must submit the following forms to the Visa Verification team:

   1. Annual Attestation of Compliance (AOC)

   2. Annual Self-Assessment Questionnaire (SAQ)

   3. Quarterly Network Scan by an Approved Scan Vendor (ASV2)

Read more information about Visa requirements below:

American Express

Merchants processing American Express transactions are required to obtain pre-approval before initiating Level II data processing. Level II data parameters from Visa or MasterCard would apply here.

To receive approval, Merchants must submit a “Level 2 Merchant’s Validation Documentation” which includes summaries from Quarterly Network Scan and a completed PCI Self Assessment Questionaire. Once granted, American Express accepts both Level I and Level II data, offering Level II interchange rates.

Visit the American Express US Data Security site for more information.

Discover

The following Merchant Commercial Code (MCC) types are disqualified from Level II or Level III data submission for interchange rate improvements:

Visa Non-Compliant MCCs List:

MasterCard

Below is a list of MasterCard qualifying card types, interchange requirements, and prohibited merchant types (MCCs).

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Level II data must include all Level I data requirements in addition to the requirements listed below.

Sales Tax Information - Sales tax information for each transaction including:

...

Sales Tax Amount

...

The total amount of sales tax applied to the transaction.

...

Sales Tax Indicator

...

Specify whether sales tax is included in the transaction amount or not.

Merchant Information - Details about the Merchant selling the product or service items including:

...

Customer Code

...

The unique identifier assigned to customers or entities within the Merchant’s records.

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Merchant TIN

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The tax identification number issued to the Merchant by their governmental tax agency.

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Level III data must include all Level II data requirements in addition to the requirements listed below.

Line Item Details - Must provide detailed information for each item listed in a transaction including:

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Discount Amount

...

Monetary reductions applied to the transaction total.

...

Discount Per Line Item

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Monetary reductions applied to the product or service price for the line item.

...

Item Description

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A detailed description of the product or service sold.

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Line Item Total

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Total transaction line item cost, calculated with quantity, unit price, discounts, tax, and shipping.

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Product Code

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A unique identifier used by the Merchant business to identify the specific product.

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Quantity

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The number of units sold.

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Unit of Measure

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A standardized unit used to quantify the quantity of the product or service.

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The following Merchant Commercial Code (MCC) types are disqualified from Level II or Level III data submission for interchange rate improvements:

MasterCard Non-Compliant MCCs List:

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Non-Compliant MCCs

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Description of Merchant Business Type

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3000–3999

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Airlines/Car Rental Companies/Hotels

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4112

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Passenger Railways

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4411

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Steamship and Cruise Lines

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4511

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Airlines and Air Carriers

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4722

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Travel Agencies and Tour Operators

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5812

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Eating Places and Restaurants

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5814

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Fast Food Restaurants

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5962

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Direct Marketing – Travel Related Arrangements Services (High Risk)

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5966

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Direct Marketing – Outbound Telemarketing Merchant (High Risk)

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5967

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Direct Marketing – Inbound Teleservices Merchant (High Risk)

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7011

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Lodging – Hotels, Motels, and Resorts

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7512

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Automobile Rental Agency

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7513

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Truck & Utility Trailer Rentals

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MasterCard

In addition to the parameter qualifications below, MasterCard also requires the following conditions to be met from Merchants before they can submit Level II or Level III data for lower interchange rates:

1. Merchants must process a combined total of 1 to 6 million MasterCard & Maestro transactions per year.

2. Merchants must process between $20,000 and $1,000,000 in e-commerce transactions per year.

3. Merchants must submit the following forms to the MasterCard:

   1. Annual Attestation of Compliance (AOC)

   2. Annual Self-Assessment Questionnaire (SAQ)

   3. Quarterly Network Scan by an Approved Scan Vendor (ASV2)

Read more information about MasterCard requirements below:

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American Express

Merchants processing American Express transactions are required to obtain pre-approval before initiating Level II data processing. Level II data parameters from Visa or MasterCard would apply here.

To receive approval, Merchants must submit a “Level 2 Merchant’s Validation Documentation” which includes summaries from Quarterly Network Scan and a completed PCI Self Assessment Questionaire. Once granted, American Express accepts both Level I and Level II data, offering Level II interchange rates.

Visit the American Express US Data Security site for more information.

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Discover

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Submit Interchange Data with Transactions

To take advantage of lower interchange rates, this Level II and Level III data must be submitted alongside your transaction. This ensures the customer’s card brand network is able to receive and assess the data to determine which interchange rate the transaction will receive.

There are multiple methods to submit Level II or Level III data, read through the basic methods below to find the best workflow for your business:

Portal

The Portal offers a very simple way to manually enter and submit Level II and Level III values with payment transactions. Read the steps below to learn more:

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API

The Payrix API provides a straightforward method of submitting Level II and Level III data values alongside transactions. Read the information below to learn more.

POST https://test-api.payrix.com/txns

{
   "merchant":"{yourMerchantID}",
   "payment":{
      "number":"{customerCardNumber}",
      "cvv":"{customerCardCVV}"
   }
   "expiration":"MMYY",
   "type":2,
   "order":"INVOICE#1",
   "total":7799,
   "tax":100,
}

{
   "merchant":"{yourMerchantID}",
   "payment":{
      "number":"{customerCardNumber}",
      "cvv":"{customerCardCVV}"
   }
   "expiration":"MMYY",
   "type":2,
   "order":"INVOICE#1",
   "total":7799,
   "tax":100,
   "items":[
      {
         "item":"Line Item #1",
         "description":"Line Item Description"
         "quantity":1,
         "price":7799,
         "um":"EACH",
         "commodityCode":"1111999",
         "total":5799,
         "discount":-2000,
         "productCode":"UPC12345"
      },
   ]
}

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PayFields

PayFields is a unique offering that seamlessly integrates a payment gateway into your existing HTML website package and eliminates PCI Compliance risk. Submitting Level II

<body>
  <div>
        <label for="number">Number:</label>
        <div id="number"></div>
      </div>
  <script>
    PayFields.fields = [
      {type: "number", element: "#number"},
      {type: "cvv", element: "#cvv"},
      {type: "name", element: "#name"},
      {type: "address", element: "#address"},
      {type: "expiration", element: "#expiration"}
      {type: "tax", element: "#tax"}
      {type: "order", element: "#order"}
    ];
  </script>
</body>

  <body>
    
  

<!DOCTYPE html>
<html>
<head>
  <meta charset="utf-8">
  <script type="text/javascript" src="https://test-api.payrix.com/payFieldsScript"></script>
  <title>PayFields Test</title>
</head>
<body>
<div id="submit">
  <!-- Button needed for PayFrame -->
</div>
<script>
    PayFields.button = {element: "#submit", value: "Pay"};
</script>
<script>
  PayFields.fields = [
    {type: "number", element: "#number"},
    {type: "cvv", element: "#cvv"},
    {type: "name", element: "#name"},
    {type: "address", element: "#address"},
    {type: "expiration", element: "#expiration"}
    {type: "tax", element: "#tax"}
    {type: "order", element: "#order"}
  ];
</script>
<script>
  PayFields.config.apiKey = "ab123c4def5g6hijkl7890m12345no6p";
  PayFields.config.merchant = "t1_mer_123ab4c567defg8h90123i45";
  PayFields.config.amount = 500;
</script>
<script>
  PayFields.customizations = {
    style: {
      ".input": {
        color: "#555",
        font: "14px Arial, Helvetica, sans-serif",
        background: "white"
      }
    }
  }
</script>
</body>
</html>