Understanding Interchange Data Requirements

With credit card transactions, different levels of data submission are critical for businesses engaged in different types of transactions. Referrers and Merchants can receive up to 40-100 basis points of reduced fees on their qualifying business and commercial card transactions.

There are three levels of interchange data submission available:

Level 1

Basic transaction data like card number, expiration date, CVV, and transaction amount that is required for standard business-to-consumer (B2C) transactions and provide standard interchange rates.

Level 2

More detailed transaction data, like a sales tax and order number, is required for B2B transactions and can provide lower interchange rates.

Level 3

Comprehensive transaction data like line item details and shipping for B2B transactions can qualify for the lowest interchange rates.

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 2 or Level 3 data submissions for lower interchange rates at this time.

Tip: While not a requirement, it is recommended to submit the previous level of interchange data when submitting the following level.

Example: When submitting Level 3 data, all Level 1 and Level 2 data requirements are already met to ensure the most visibility for Level 3 interchange rates.

Below is a breakdown of the key data required for Level 2 and Level 3 data submission for each card brand.

Level 1 Interchange Data Requirements

All transactions, regardless of card brand, must meet these data requirements to qualify for basic interchange or Level 1:

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.
Card CVV	The 3 or 4-digit security code shown on the customer’s card.

Commodity Codes

The Commodity Code must be submitted in numeric-only formatting to meet requirements. Merchants should utilize the National Institute of Governmental Purchasings' (NIGP) Commodity Codes.

The full code list is available via subscription here.

A partial list of 7-digit NIGP commodity codes is available here:

Level 2 and 3 Interchange Data Requirements

Each card brand will feature its list of requirements necessary to receive interchange rates by using Level 2 or Level 3 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 Interchange Data with Transactions below to learn the different methods available to submit this data.

Visa

Read more information about Visa requirements below:

The following card types can be used for Level 2 data submission:

Corporate Purchasing
Business Credit
Enhanced Business Credit
Signature Business Credit

In addition to the above, the following card types can be used for Level 3 data submission:

Corporate Credit
Purchasing Credit

Level 2 data must include all Level 1 data requirements in addition to the requirements listed below.

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

Sales Tax Amount	The total amount of sales tax applied to the transaction.
Order Number	A unique identifier used by the merchant to locate the specific transaction information.

Level 3 data must include all Level 2 data requirements in addition to the requirements listed below.

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

Item	Name or title of the item.
Description	A detailed description of the product or service sold.
Commodity Code	We recommend using the standardized numerical 7-digit NIGP commodity code used to classify products for customs. Attached is a partial list of available 7-digit codes.
Product Code	A unique identifier used by the Merchant business to identify the specific product.
Item Price	The price per item unit.
Item Discount	Monetary reductions applied to the product or service price for the line item.
Quantity	The number of units sold.
Unit of Measure	A standardized unit used to quantify the quantity of the product or service.
Item Total	Total transaction line item cost, calculated with quantity, unit price, discounts, tax, and shipping.

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

Shipping Amount	The cost associated with transporting products from Merchant to customer.
Duty Amount	The monetary value of customs duties or taxes related to product import and export.
Order Discount	Monetary reductions applied to the transaction total.
Tax

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

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

Your interchange rate may change based on the transaction amount 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)
The transaction amount must meet ticket thresholds: $6,980+

MasterCard

Read more information about MasterCard requirements below:

American Express & Discover

There is no additional work or line item data submission required by American Express or Discover.

Both card brands provide lower interchange rates on their respective networks, calculated and adjusted based exclusively on the cardholder’s card type (e.g. business card, corporate card, etc.).