Level 2 and Level 3 processing means sending extra invoice details with business card payments, such as tax, customer codes and line items. Card networks reward that data with lower interchange on business, corporate and purchasing cards. As of 2026, Visa requires full Level 3 line-item data under its Commercial Enhanced Data Program for those lower rates; Mastercard's programs are separate. B2B businesses can save around a percentage point on business card sales.
Key takeaways
- Level 2 adds tax and customer codes; Level 3 adds full line-item detail.
- Lower rates apply to business, corporate, purchasing and government cards.
- Visa retired separate Level 2 rates in 2026; full Level 3 data is now required for Visa.
- Savings of about a percentage point on business card sales are common.
- Most processors can send the data automatically from your invoices.
Level 2 vs. Level 3 data
| Level | Data sent |
|---|---|
| Level 1 | Standard card data: amount, date, merchant |
| Level 2 | Adds sales tax amount, customer code or PO number, and ZIP code |
| Level 3 | Adds line items: product codes, descriptions, quantities, unit prices, freight and duty |
What changed with Visa in 2026
Visa replaced its Level 2 and Level 3 programs with the Commercial Enhanced Data Program (CEDP). Lower rates on qualifying Visa commercial card transactions now require complete Level 3 data, Visa checks that the data is accurate, and a small participation fee applies. The separate Level 2 rate tier was retired in 2026. Mastercard runs its own programs. If your processor set you up for Level 2 years ago, ask whether you're still getting the lower rates.
How much it saves
Business cards are expensive to accept, often around 2.65% to 2.96%. One processor reports those dropping to about 1.85% to 2.06% with enhanced data. On $50,000 a month in business card sales, a one-point drop saves about $500 a month, or $6,000 a year.
In a published case, a three-location furniture showroom serving interior designers saved about $4,000 a month by adding enhanced data and moving to interchange-plus pricing.
Who should use it
- B2B suppliers, wholesalers and distributors
- Manufacturers and industrial suppliers
- Contractors with commercial clients
- Trucking, fleet services and dealerships with commercial customers
- Anyone who invoices businesses or government agencies
How to get set up
- Check your statement for how much of your volume is business or corporate cards (see how to read a merchant statement).
- Ask your processor whether your gateway sends full Level 3 data automatically.
- Make sure your invoices carry accurate tax and line-item details.
- Confirm on your next statement that business card sales are qualifying for lower rates.
Estimate your savings with the credit card processing fee calculator, or send a statement for a free fee review.
Frequently asked questions
What is Level 2 and Level 3 processing?
Does Visa still offer Level 2 rates?
Who benefits from Level 3 processing?
How much can Level 3 processing save?
Do I have to enter all that data by hand?
This article is general information, not legal, tax or financial advice. Card network rules and state laws change; confirm the rules for your business before changing how you charge customers.