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With credit card transactions, Level II and Level III data submission is 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.

Info

Note: Each additional level of data submission, Level I to Level II to Level III data, requires all data from the previous level in addition to the new data required.

Example: In order to submit Level III data, all Level I and Level II data requirements must already be met to qualify for Level III interchange rates.

Level I Interchange Data Requirements

All transactions, regardless of card brand, must meet these data requirements in order to qualify for basic interchange or Level I:

Merchant & Transaction Information - Basic data provided about the Merchant and Transaction, including:

Merchant Name

The name of the Merchant business selling products or services.

Transaction Date

The date that the transaction took place.

Transaction Amount

The total amount of the transaction charged to the customer.

Customer / Cardholder Information - Essential customer and card data used to pay, including:

Customer Zip Code

The billing zip code on file with the customer’s credit card company.

Customer Billing Address

The full billing address on file with the customer’s credit card company.

Credit Card Number

The 15 (AMEX) or 16-digit credit card number shown on the customer’s card.

Card Expiration Date

The 4-digit, MMYY-format expiration date shown on the customer’s card.

Level II and III Interchange Data Requirements

Each card brand will feature its own list of requirements necessary to receive interchange rates by using Level II or Level III data to qualify on its card network. Each major card brand - Visa, MasterCard, American Express, and Discover - has been listed below with individual details to clearly explain their requirements.

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.

Tip

Visa - The Data Requirements Standard

For developers and Portal users, we recommend using Visa’s Level II and Level III requirements as your data submission foundation for Level II and Level II submission for any card brand.

Visa’s stringent standards cover all necessary elements for detailed transaction reporting.

Visa

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

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titleVisa - Qualifying Card Types for Interchange Data Submission

The following card types can be used for Level II & Level III data submission and interchange rates:

  • Business Cards

  • Corporate Cards

  • Purchasing Cards

Expand
titleVisa - Level II Data Requirements

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.

Merchant Zip Code

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

Merchant TIN

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

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titleVisa - Level III Data Requirements

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:

Discount Amount

Monetary reductions applied to the transaction total.

Discount Per Line Item

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

Invoice number

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

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.

View file
namenigplist.pdf

Item Description

A detailed description of the product or service sold.

Line Item Total

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

Order number

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

Product Code

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

Quantity

The number of units sold.

Unit Price

The price per item unit.

Unit of Measure

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

Unit of Cost

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:

Duty Amount

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

Shipping Amount

The cost associated with transporting products from Merchant to customer.

Shipping Destination Country

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

Shipping Destination Zip Code

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

Shipping Origin Zip Code

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

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titleVisa - Additional Qualification Requirements

In addition to the interchange data requirements above, the Visa card network has specific additional requirements to qualify:

  • The transaction must be compliant with the Visa Custom Payment Service (CPS).

  • A ‘capture’ request must follow the ‘authorization’ request:

    • Within 1 business day (no more than 24 hours between auth and capture) or;

    • Within 7 days (for eligible large ticket transactions using corporate/purchasing cards).

  • Transaction must be authorized online and cannot be a cardholder-activated terminal (CAT) location.

  • The transaction must always include a non-zero tax amount

  • Business Card type transactions must always include an Address Verification System (AVS) reference.

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titleVisa - Large Ticket Requirements

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.

In addition to the data requirements above, the Visa card network has specific additional requirements to qualify for Large Ticket interchange pricing:

  • Clearing must follow authorization within 2 business days (no more than 1 day between auth and capture)

Expand
titleVisa - Prohibited Merchant Business Types (MCCs)

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:

Non-Compliant MCCs

Description of Merchant Business Type

3000–3999

Airlines/Car Rental Companies/Hotels

4112

Passenger Railways

4411

Steamship and Cruise Lines

4511

Airlines and Air Carriers

4722

Travel Agencies and Tour Operators

5812

Eating Places and Restaurants

5814

Fast Food Restaurants

5962

Direct Marketing – Travel Related Arrangements Services (High Risk)

5966

Direct Marketing – Outbound Telemarketing Merchant (High Risk)

5967

Direct Marketing – Inbound Teleservices Merchant (High Risk)

7011

Lodging – Hotels, Motels, and Resorts

7512

Automobile Rental Agency

7513

Truck & Utility Trailer Rentals

MasterCard

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

Expand
titleMasterCard - Qualifying Card Types for Interchange Data Submission

The following card types can be used for Level II & Level III data submission and interchange rates:

  • Business Cards

  • Corporate Cards

  • Purchasing Cards

Note

Warning: The following card types are ineligible for Level III interchange with MasterCard:

  • MBS - Mastercard B2B Product 1

  • MEF - Mastercard Electronic Payment Account

Expand
titleMasterCard - Level II Data Requirements

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.

Merchant TIN

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

Expand
titleMasterCard - Level III Data Requirements

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:

Discount Amount

Monetary reductions applied to the transaction total.

Discount Per Line Item

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

Item Description

A detailed description of the product or service sold.

Line Item Total

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

Product Code

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

Quantity

The number of units sold.

Unit of Measure

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

Note

Warning: The following card types are ineligible for Level III interchange with MasterCard:

  • MBS - Mastercard B2B Product 1

  • MEF - Mastercard Electronic Payment Account

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titleMasterCard - Additional Qualification Requirements

In addition to the interchange data requirements above, the MasterCard card network has specific additional requirements to qualify:

  • Clearing must follow an authorization request within 3 business days (no more than 2 days between auth and capture).

Expand
titleMasterCard - Large Ticket Requirements

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 MasterCard’s large ticket program for high-dollar-value transactions.

In addition to the data requirements above, the MasterCard network has specific additional requirements to qualify for Large Ticket interchange pricing:

  • Clearing must follow authorization within 2 business days (no more than 1 day between auth and capture).

Note

Warning: The following card types are ineligible for MasterCard’s large ticket program:

  • MAP - Mastercard Commercial Payments Account

  • MAQ - Mastercard Prepaid Commercial Payments Account

  • MEF - Mastercard Electronic Payment Account

Expand
titleMasterCard - Prohibited Merchant Business Types (MCCs)

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:

Non-Compliant MCCs

Description of Merchant Business Type

3000–3999

Airlines/Car Rental Companies/Hotels

4112

Passenger Railways

4411

Steamship and Cruise Lines

4511

Airlines and Air Carriers

4722

Travel Agencies and Tour Operators

5812

Eating Places and Restaurants

5814

Fast Food Restaurants

5962

Direct Marketing – Travel Related Arrangements Services (High Risk)

5966

Direct Marketing – Outbound Telemarketing Merchant (High Risk)

5967

Direct Marketing – Inbound Teleservices Merchant (High Risk)

7011

Lodging – Hotels, Motels, and Resorts

7512

Automobile Rental Agency

7513

Truck & Utility Trailer Rentals

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.

Warning

Unavailable: American Express does not offer discounts or changes in interchanges rates for Level III data submissions

Discover

Warning

Unavailable: American Express does not offer any discounts or changes in interchanges rates for Level II or Level III data submissions.