Level 2 and Level 3 Processing

Credit card processing fits into three levels: Level 1, Level 2, and Level 3 processing.

Each level is defined by the amount of information needed to complete a transaction.

  • Level 1: Normal interchange, no additional fields required
  • Level 2: Lower interchange, additional fields required
  • Level 3: Lowest interchange, additional fields required

For Level 2 and Level 3 processing, only business-to-business merchants and the government can receive lower interchange fees. Additionally, a corporate, business, or purchase card is required to obtain the lower interchange rate for Level 2 and 3 processing.

  • This feature is only supported on Visa and Mastercard branded cards.
  • Because only business-to-business and government transactions qualify, the merchant needs to be enabled for Level 2/3 processing.

Ineligible Merchants

Specific business are excluded from processing Level 2 and 3 transactions.

If a merchant has one of the following Merchant Category Codes (MCC), they aren't eligible to process Level 2/3 transactions:

MCC Code Merchant Description
3000-3299, 4511 Airlines/Passenger Transport
3351-3500, 7512 Car Rentals/Auto Rental
4411 Cruise Lines
5962, 5966, 5967 High Risk Direct Marketing
3501-4010, 7011 Hotels/Lodging
4112 Passenger Railways
5812, 5814 Restaurants
4722 Travel Agents
7513 Truck and Utility Trailer Rentals

Update a Merchant to Enable Level 2/3 Processing

Before a merchant can process Level 2 or 3 transactions, update the resource and enable level_two_level_three_data_enabled. For more information, see Update a Merchant.

warning

The APIs to update merchant flags are only available for Finix Core customers. If you have additional questions, please reach out to your Finix point of contact or email Finix support.

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curl https://finix.sandbox-payments-api.com/merchants/MUeDVrf2ahuKc9Eg5TeZugvs \
    -H "Content-Type: application/vnd.json+api" \
    -H 'Finix-Version:2022-02-01' \
    -u  UStxEci4vXxGDWLQhNvao7YY:25038781-2369-4113-8187-34780e91052e \
    -X PUT \
    -d '
	{
	    "level_two_level_three_data_enabled": true
	}'

Example Response:

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{
  "id" : "MUeDVrf2ahuKc9Eg5TeZugvs",
  "application" : "APgPDQrLD52TYvqazjHJJchM",
  "identity" : "IDuqZpDw28f2KK6YuDk4jNLg",
  "verification" : "VI5DBvVQ3ye5PcnUCSSvj84d",
  "merchant_profile" : "MP7tbAZ1RpjFycrfBVo6z4Ky",
  "processor" : "DUMMY_V1",
  "processing_enabled" : true,
  "settlement_enabled" : true,
  "gross_settlement_enabled" : false,
  "creating_transfer_from_report_enabled" : true,
  "card_expiration_date_required" : false,
  "card_cvv_required" : false,
  "tags" : {
    "key_2" : "value_2"
  },
  "mcc" : "0742",
  "mid" : "FNXw5a7pBKHsCSgCAyQvU2soL",
  "merchant_name" : "Finix Flowers",
  "settlement_funding_identifier" : "UNSET",
  "ready_to_settle_upon" : "RECONCILIATION",
  "fee_ready_to_settle_upon" : "RECONCILIATION",
  "level_two_level_three_data_enabled" : true,
  "created_at" : "2022-01-27T07:37:04.03Z",
  "updated_at" : "2022-01-27T07:37:05.30Z",
  "onboarding_state" : "APPROVED",
  "processor_details" : {
    "mid" : "FNXw5a7pBKHsCSgCAyQvU2soL",
    "api_key" : "secretValue"
  },
  "_links" : {
    "self" : {
      "href" : "https://finix.sandbox-payments-api.com/merchants/MUeDVrf2ahuKc9Eg5TeZugvs"
    },
    "identity" : {
      "href" : "https://finix.sandbox-payments-api.com/identities/IDuqZpDw28f2KK6YuDk4jNLg"
    },
    "verifications" : {
      "href" : "https://finix.sandbox-payments-api.com/merchants/MUeDVrf2ahuKc9Eg5TeZugvs/verifications"
    },
    "merchant_profile" : {
      "href" : "https://finix.sandbox-payments-api.com/merchant_profiles/MP7tbAZ1RpjFycrfBVo6z4Ky"
    },
    "application" : {
      "href" : "https://finix.sandbox-payments-api.com/applications/APgPDQrLD52TYvqazjHJJchM"
    },
    "verification" : {
      "href" : "https://finix.sandbox-payments-api.com/verifications/VI5DBvVQ3ye5PcnUCSSvj84d"
    }
  }
}

Creating Sales with Level 2 and Level 3 Processing

Once level_two_level_three_data_enabled is updated to true, the merchant can process both Level 2 and Level 3 transfers and authorizations.

  • Level 2 and and Level 3 Processing combines the data that gets requested during creation and captures into one API call. An authorization with Level 2 or Level 3 processing only needs to be captured if the data is different or changes from the original authorization .

When processing Level 2 and Level 3 transactions, it'srequired to include additional fields when creating a transfer and authorization.

  • There are no changes in the post-payments experience (reversals, refunds, settlements, etc.) when processing Level 2 or Level 3 transactions.
  • The documented fields are the minimum amount of information required for L2 or L3 interchange rates. There’s no additional benefit in passing every field for a particular level.

Creating a Sale with Level 2 and Level 3 Processing

Create a Sale with Level 2 Processing

Create a Transfer and include the additional fields to include Level 2 processing.

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curl https://finix.sandbox-payments-api.com/transfers \
    -H "Content-Type: application/vnd.json+api" \
    -H 'Finix-Version:2022-02-01' \
    -u  USsRhsHYZGBPnQw8CByJyEQW:8a14c2f9-d94b-4c72-8f5c-a62908e5b30e \
    -d '
	{
	    "merchant": "MUeDVrf2ahuKc9Eg5TeZugvs",
	    "source": "PIe2YvpcjvoVJ6PzoRPBK137",
	    "additional_purchase_data": {
	        "customer_reference_number": "321xyz",
	        "sales_tax": 200
	    },
	    "tags": {
	        "test": "sale"
	    },
	    "currency": "USD",
	    "amount": 1000
	}'

A successful response returns 201 and the newly created Transfer.

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{
  "id" : "TRvG5YvLrSRr1dcVnmyg7aJs",
  "amount" : 1000,
  "tags" : {
    "test" : "sale"
  },
  "state" : "PENDING",
  "trace_id" : "a824fdf6-88cb-417f-9f74-2a522dfd9774",
  "currency" : "USD",
  "application" : "APgPDQrLD52TYvqazjHJJchM",
  "source" : "PIe2YvpcjvoVJ6PzoRPBK137",
  "destination" : null,
  "ready_to_settle_at" : null,
  "externally_funded" : "UNKNOWN",
  "fee" : 0,
  "statement_descriptor" : "FNX*FINIX FLOWERS",
  "type" : "DEBIT",
  "messages" : [ ],
  "raw" : null,
  "created_at" : "2022-01-27T07:37:11.51Z",
  "updated_at" : "2022-01-27T07:37:11.84Z",
  "idempotency_id" : null,
  "merchant_identity" : "IDuqZpDw28f2KK6YuDk4jNLg",
  "subtype" : "API",
  "_links" : {
    "application" : {
      "href" : "https://finix.sandbox-payments-api.com/applications/APgPDQrLD52TYvqazjHJJchM"
    },
    "self" : {
      "href" : "https://finix.sandbox-payments-api.com/transfers/TRvG5YvLrSRr1dcVnmyg7aJs"
    },
    "merchant_identity" : {
      "href" : "https://finix.sandbox-payments-api.com/identities/IDuqZpDw28f2KK6YuDk4jNLg"
    },
    "payment_instruments" : {
      "href" : "https://finix.sandbox-payments-api.com/transfers/TRvG5YvLrSRr1dcVnmyg7aJs/payment_instruments"
    },
    "reversals" : {
      "href" : "https://finix.sandbox-payments-api.com/transfers/TRvG5YvLrSRr1dcVnmyg7aJs/reversals"
    },
    "fees" : {
      "href" : "https://finix.sandbox-payments-api.com/transfers/TRvG5YvLrSRr1dcVnmyg7aJs/fees"
    },
    "disputes" : {
      "href" : "https://finix.sandbox-payments-api.com/transfers/TRvG5YvLrSRr1dcVnmyg7aJs/disputes"
    },
    "source" : {
      "href" : "https://finix.sandbox-payments-api.com/payment_instruments/PIe2YvpcjvoVJ6PzoRPBK137"
    },
    "fee_profile" : {
      "href" : "https://finix.sandbox-payments-api.com/fee_profiles/FPbDSnEPtaT8Nttxj9NJk7eC"
    }
  }
}

Create a Sale with Level 3 Processing

Create a Transfer with the additional fields to include Level 3 processing.

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curl https://finix.sandbox-payments-api.com/transfers \
    -H "Content-Type: application/vnd.json+api" \
    -H 'Finix-Version:2022-02-01' \
    -u  USsRhsHYZGBPnQw8CByJyEQW:8a14c2f9-d94b-4c72-8f5c-a62908e5b30e \
    -d '
	{
	    "merchant": "MUeDVrf2ahuKc9Eg5TeZugvs",
	    "source": "PIe2YvpcjvoVJ6PzoRPBK137",
	    "additional_purchase_data": {
	        "item_data": [
	            {
	                "amount_including_sales_tax": 500,
	                "unit_of_measure": "BX",
	                "merchant_product_code": "1149611",
	                "amount_excluding_sales_tax": 400,
	                "cost_per_unit": 500,
	                "commodity_code": "175-62-20",
	                "item_discount_amount": 100,
	                "item_description": "printing paper",
	                "quantity": 1
	            },
	            {
	                "amount_including_sales_tax": 500,
	                "unit_of_measure": "CTN",
	                "merchant_product_code": "2149612",
	                "amount_excluding_sales_tax": 400,
	                "cost_per_unit": 500,
	                "commodity_code": "207-72-54",
	                "item_discount_amount": 0,
	                "item_description": "printing ink",
	                "quantity": 1
	            }
	        ],
	        "discount_amount": 100,
	        "customer_reference_number": "321xyz",
	        "shipping_amount": 100,
	        "customs_duty_amount": 10
	    },
	    "tags": {
	        "test": "sale"
	    },
	    "currency": "USD",
	    "amount": 1000
	}'

A successful response returns 201 and the newly created Transfer.

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{
  "id" : "TRvKLgrx3uMvkcDup74wFqyY",
  "amount" : 1000,
  "tags" : {
    "test" : "sale"
  },
  "state" : "PENDING",
  "trace_id" : "2c9baf47-835d-439d-82fa-24ea140bac25",
  "currency" : "USD",
  "application" : "APgPDQrLD52TYvqazjHJJchM",
  "source" : "PIe2YvpcjvoVJ6PzoRPBK137",
  "destination" : null,
  "ready_to_settle_at" : null,
  "externally_funded" : "UNKNOWN",
  "fee" : 0,
  "statement_descriptor" : "FNX*FINIX FLOWERS",
  "type" : "DEBIT",
  "messages" : [ ],
  "raw" : null,
  "created_at" : "2022-01-27T07:37:12.37Z",
  "updated_at" : "2022-01-27T07:37:12.87Z",
  "idempotency_id" : null,
  "merchant_identity" : "IDuqZpDw28f2KK6YuDk4jNLg",
  "subtype" : "API",
  "_links" : {
    "application" : {
      "href" : "https://finix.sandbox-payments-api.com/applications/APgPDQrLD52TYvqazjHJJchM"
    },
    "self" : {
      "href" : "https://finix.sandbox-payments-api.com/transfers/TRvKLgrx3uMvkcDup74wFqyY"
    },
    "merchant_identity" : {
      "href" : "https://finix.sandbox-payments-api.com/identities/IDuqZpDw28f2KK6YuDk4jNLg"
    },
    "payment_instruments" : {
      "href" : "https://finix.sandbox-payments-api.com/transfers/TRvKLgrx3uMvkcDup74wFqyY/payment_instruments"
    },
    "reversals" : {
      "href" : "https://finix.sandbox-payments-api.com/transfers/TRvKLgrx3uMvkcDup74wFqyY/reversals"
    },
    "fees" : {
      "href" : "https://finix.sandbox-payments-api.com/transfers/TRvKLgrx3uMvkcDup74wFqyY/fees"
    },
    "disputes" : {
      "href" : "https://finix.sandbox-payments-api.com/transfers/TRvKLgrx3uMvkcDup74wFqyY/disputes"
    },
    "source" : {
      "href" : "https://finix.sandbox-payments-api.com/payment_instruments/PIe2YvpcjvoVJ6PzoRPBK137"
    },
    "fee_profile" : {
      "href" : "https://finix.sandbox-payments-api.com/fee_profiles/FPbDSnEPtaT8Nttxj9NJk7eC"
    }
  }
}

Create an Authorization with Level 2 and Level 3 Processing

Create an Authorization with Level 2 Processing

Create an Authorization with the additional fields to include Level 2 processing.

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curl https://finix.sandbox-payments-api.com/authorizations \
    -H "Content-Type: application/vnd.json+api" \
    -H 'Finix-Version:2022-02-01' \
    -u  USsRhsHYZGBPnQw8CByJyEQW:8a14c2f9-d94b-4c72-8f5c-a62908e5b30e \
    -d '
	{
	    "merchant": "MUeDVrf2ahuKc9Eg5TeZugvs",
	    "source": "PIe2YvpcjvoVJ6PzoRPBK137",
	    "additional_purchase_data": {
	        "customer_reference_number": "321xyz",
	        "sales_tax": 200
	    },
	    "tags": {
	        "order_number": "21DFASJSAKAS"
	    },
	    "currency": "USD",
	    "amount": 1000,
	    "processor": "DUMMY_V1"
	}'

A successful response returns 201 and the newly created Authorization.

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{
  "id" : "AUq2Xz5VS46U4hzzhX9WJCxx",
  "application" : "APgPDQrLD52TYvqazjHJJchM",
  "amount" : 1000,
  "tags" : {
    "order_number" : "21DFASJSAKAS"
  },
  "state" : "SUCCEEDED",
  "currency" : "USD",
  "transfer" : null,
  "messages" : [ ],
  "raw" : null,
  "created_at" : "2022-01-27T07:37:20.68Z",
  "updated_at" : "2022-01-27T07:37:20.86Z",
  "trace_id" : "2b181625-616a-45b1-a8e7-311d76fddd5e",
  "source" : "PIe2YvpcjvoVJ6PzoRPBK137",
  "merchant_identity" : "IDuqZpDw28f2KK6YuDk4jNLg",
  "3ds_redirect_url" : null,
  "is_void" : false,
  "void_state" : "UNATTEMPTED",
  "expires_at" : "2022-02-03T07:37:20.68Z",
  "idempotency_id" : null,
  "_links" : {
    "self" : {
      "href" : "https://finix.sandbox-payments-api.com/authorizations/AUq2Xz5VS46U4hzzhX9WJCxx"
    },
    "application" : {
      "href" : "https://finix.sandbox-payments-api.com/applications/APgPDQrLD52TYvqazjHJJchM"
    },
    "merchant_identity" : {
      "href" : "https://finix.sandbox-payments-api.com/identities/IDuqZpDw28f2KK6YuDk4jNLg"
    }
  }
}

Create an Authorization with Level 3 Processing

Create an Authorization with the additional fields to include Level 3 processing.

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curl https://finix.sandbox-payments-api.com/authorizations \
    -H "Content-Type: application/vnd.json+api" \
    -H 'Finix-Version:2022-02-01' \
    -u  USsRhsHYZGBPnQw8CByJyEQW:8a14c2f9-d94b-4c72-8f5c-a62908e5b30e \
    -d '
	{
	    "merchant": "MUeDVrf2ahuKc9Eg5TeZugvs",
	    "source": "PIe2YvpcjvoVJ6PzoRPBK137",
	    "additional_purchase_data": {
	        "item_data": [
	            {
	                "amount_including_sales_tax": 500,
	                "unit_of_measure": "BX",
	                "merchant_product_code": "1149611",
	                "amount_excluding_sales_tax": 400,
	                "cost_per_unit": 500,
	                "commodity_code": "175-62-20",
	                "item_discount_amount": 100,
	                "item_description": "printing paper",
	                "quantity": 1
	            },
	            {
	                "amount_including_sales_tax": 500,
	                "unit_of_measure": "CTN",
	                "merchant_product_code": "2149612",
	                "amount_excluding_sales_tax": 400,
	                "cost_per_unit": 500,
	                "commodity_code": "207-72-54",
	                "item_discount_amount": 0,
	                "item_description": "printing ink",
	                "quantity": 1
	            }
	        ],
	        "discount_amount": 100,
	        "customer_reference_number": "321xyz",
	        "shipping_amount": 100,
	        "customs_duty_amount": 10
	    },
	    "tags": {
	        "order_number": "21DFASJSAKAS"
	    },
	    "currency": "USD",
	    "amount": 1000,
	    "processor": "DUMMY_V1"
	}'

A successful response returns 201 and the newly created Authorization.

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{
  "id" : "AUsQsCLRp9ENxrh563w1zZHi",
  "application" : "APgPDQrLD52TYvqazjHJJchM",
  "amount" : 1000,
  "tags" : {
    "order_number" : "21DFASJSAKAS"
  },
  "state" : "SUCCEEDED",
  "currency" : "USD",
  "transfer" : null,
  "messages" : [ ],
  "raw" : null,
  "created_at" : "2022-01-27T07:37:21.55Z",
  "updated_at" : "2022-01-27T07:37:21.68Z",
  "trace_id" : "88136ea9-9393-4b95-b4c0-940b49ab707d",
  "source" : "PIe2YvpcjvoVJ6PzoRPBK137",
  "merchant_identity" : "IDuqZpDw28f2KK6YuDk4jNLg",
  "3ds_redirect_url" : null,
  "is_void" : false,
  "void_state" : "UNATTEMPTED",
  "expires_at" : "2022-02-03T07:37:21.55Z",
  "idempotency_id" : null,
  "_links" : {
    "self" : {
      "href" : "https://finix.sandbox-payments-api.com/authorizations/AUsQsCLRp9ENxrh563w1zZHi"
    },
    "application" : {
      "href" : "https://finix.sandbox-payments-api.com/applications/APgPDQrLD52TYvqazjHJJchM"
    },
    "merchant_identity" : {
      "href" : "https://finix.sandbox-payments-api.com/identities/IDuqZpDw28f2KK6YuDk4jNLg"
    }
  }
}

Capture an Authorization with Level 2/Level 3 Processing

Unless the Level 2/Level 3 data is different than the original information used to create the Authorization, there's no need to include Level 2/Level 3 data in the capture request. Finix will automatically include the Level 2/Level 3 data with the capture.

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curl https://finix.sandbox-payments-api.com/authorizations/AU4AHPn4k7YTQ8YjK3QajeL2 \
    -H "Content-Type: application/vnd.api+json" \
    -H 'Finix-Version:2022-02-01' \
    -u  USsRhsHYZGBPnQw8CByJyEQW:8a14c2f9-d94b-4c72-8f5c-a62908e5b30e \
    -X PUT \
    -d '
	{
	    "additional_purchase_data": {
	        "item_data": [
	            {
	                "amount_including_sales_tax": 500,
	                "unit_of_measure": "BX",
	                "merchant_product_code": "1149611",
	                "amount_excluding_sales_tax": 400,
	                "cost_per_unit": 500,
	                "commodity_code": "175-62-20",
	                "item_discount_amount": 100,
	                "item_description": "printing paper",
	                "quantity": 1
	            },
	            {
	                "amount_including_sales_tax": 500,
	                "unit_of_measure": "CTN",
	                "merchant_product_code": "2149612",
	                "amount_excluding_sales_tax": 400,
	                "cost_per_unit": 500,
	                "commodity_code": "207-72-54",
	                "item_discount_amount": 0,
	                "item_description": "printing ink",
	                "quantity": 1
	            }
	        ],
	        "discount_amount": 100,
	        "customer_reference_number": "321xyz",
	        "shipping_amount": 100,
	        "customs_duty_amount": 10
	    },
	    "fee": 0,
	    "capture_amount": 100
	}'

A successful response returns 201 and the captured Authorization.

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{
  "id" : "AU4AHPn4k7YTQ8YjK3QajeL2",
  "application" : "APgPDQrLD52TYvqazjHJJchM",
  "amount" : 1000,
  "tags" : {
    "order_number" : "21DFASJSAKAS"
  },
  "state" : "SUCCEEDED",
  "currency" : "USD",
  "transfer" : "TRbew5P8bkL3yxz6a6FzfVia",
  "messages" : [ ],
  "raw" : null,
  "created_at" : "2022-01-27T07:37:22.36Z",
  "updated_at" : "2022-01-27T07:37:23.44Z",
  "trace_id" : "ab81e66c-dd65-438b-a1dc-6d580b36233c",
  "source" : "PIe2YvpcjvoVJ6PzoRPBK137",
  "merchant_identity" : "IDuqZpDw28f2KK6YuDk4jNLg",
  "3ds_redirect_url" : null,
  "is_void" : false,
  "void_state" : "UNATTEMPTED",
  "expires_at" : "2022-02-03T07:37:22.36Z",
  "idempotency_id" : null,
  "_links" : {
    "self" : {
      "href" : "https://finix.sandbox-payments-api.com/authorizations/AU4AHPn4k7YTQ8YjK3QajeL2"
    },
    "application" : {
      "href" : "https://finix.sandbox-payments-api.com/applications/APgPDQrLD52TYvqazjHJJchM"
    },
    "transfer" : {
      "href" : "https://finix.sandbox-payments-api.com/transfers/TRbew5P8bkL3yxz6a6FzfVia"
    },
    "merchant_identity" : {
      "href" : "https://finix.sandbox-payments-api.com/identities/IDuqZpDw28f2KK6YuDk4jNLg"
    }
  }
}