Unlocking More Revenue: The Hidden Power of Level 2/3 Processing

Level 1 transactions include standard data such as the card number, expiration date, and billing address. While this basic information is necessary, passing additional data to the card networks can significantly reduce your interchange rates. This is where Level 2 and Level 3 processing come into play:

Level 2 transactions add details like the tax amount, customer code, and purchase order information. Level 3 transactions go even further by including comprehensive line-item details such as item descriptions, quantities, unit costs, freight amounts, and more.

Card networks, especially Visa and Mastercard, incentivize merchants to provide this richer data by lowering interchange fees. This benefit is particularly valuable for high-ticket transactions common in industries like B2B, SaaS, education, and wholesale.

Level 2 and Level 3 data aren’t just buzzwords, they’re powerful levers for reducing interchange costs. By submitting richer transaction data, like invoice numbers, tax amounts, and customer codes—businesses help reduce fraud and chargeback risk for card networks. In return, networks reward this added transparency with lower interchange rates.

Here are three real-world examples that show how platforms across industries are using Finix to unlock meaningful savings and streamline payment operations:

• B2B SaaS Platform: A SaaS company offering procurement software enabled Level 3 data through Finix. With an average transaction size of $2,200, they saved approximately 4.25% in interchange fees over six months, totaling $47,000 in savings.

• Education Marketplace: A platform that facilitates bulk textbook orders for universities activated Level 2/3 support. This move not only simplified invoicing but also led to $20,000 in savings (2.25% in interchange fees) over a single semester.

• Franchise Payment Systems: A national franchise network leveraged Level 3 data to centralize payment reporting, stay compliant, and negotiate better rates with issuing banks—turning payment complexity into cost efficiency.

Let’s say you process $10 million in commercial card payments annually. With standard (Level 1) data, your interchange rate could hover around 2.9%, costing you roughly $290,000 per year. Now, if you enable Level 2 data—adding basic business details like tax amounts and invoice numbers. You might reduce that rate to around 2.4%, saving $50,000.

But go a step further with Level 3 data, which includes even more granular line-item details, and your rate could drop to 1.9% or lower, unlocking up to $100,000 in annual savings.

That’s not pocket change. That’s a new headcount. A product launch. Or a six-figure margin lift you didn’t have to fight for. Interchange optimization isn’t just smart finance, it’s your next growth lever.

Disclaimer: These figures are illustrative examples provided by card networks and are not guaranteed. Actual savings vary based on multiple factors including transaction types, industry, and payment processor.

Misconception #1: “Level 2/3 is only for huge enterprises.” Truth: Any business that sells to other businesses can benefit, especially those with average ticket sizes above $500. And with Finix, you don’t need a development team to enable this. Our APIs and onboarding tools automate the data capture process.

Misconception #2: “Level 3 is too complex and not worth the hassle.” Truth: Complexity used to be a barrier. But Finix has built smart defaults and flexible field mapping to make Level 3 data submission turnkey. Our platform dynamically adapts to each merchant's vertical—no guesswork required.

Misconception #3: “The savings go to the merchant, not the platform.” Truth: With embedded payments and platform ownership, you share in those savings. Lower interchange fees mean better unit economics and more margin to reinvest or monetize.

Unlike other processors who require heavy development work or charge premiums for Level 2/3 support, Finix bakes optimization directly into the platform:

• Smart routing and data enrichment: Our platform identifies eligible transactions and injects the necessary data.

• No-code onboarding flows: We auto-collect tax, PO, and line-item data via hosted fields and APIs.

• Real-time optimization: We automatically submit Level 2/3 data when it improves merchant or platform’s economics.

• Transparent reporting: Get visibility into how much you’re saving and where the biggest opportunities lie.

This isn’t just a feature. It unlocks revenue too!

Platforms are entering a new era of payment ownership. Interchange optimization through Level 2 and Level 3 processing isn’t a nice-to-have—it’s a necessity for scaling profitably.

With Finix, you don't just process payments. You optimize them. You monetize them. And you differentiate your platform in ways your competitors aren’t even thinking about yet.

Want to learn how much you could save with Level 2 and Level 3 processing? Let’s talk.

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