Level 2 Data
Enhanced transaction information beyond basic payment card data, including tax amount, customer code, and merchant postal code, required to qualify for reduced interchange rates on commercial, corporate, and government purchasing card transactions.
Level 2 data represents an intermediate level of transaction detail between basic Level 1 data (cardholder name, card number, amount) and comprehensive Level 3 line-item data. Required Level 2 fields typically include sales tax amount, customer purchase order or reference number, merchant postal code or ZIP code, tax identification number, and merchant minority or small business status (for government cards). The specific fields required vary slightly by card network, but tax amount and customer code are universally important.
Commercial, corporate, and purchasing cards carry significantly higher standard interchange rates than consumer cards—often 2.50% to 3.00% or higher—because they offer businesses enhanced features like extended payment terms, detailed expense reporting, and higher credit limits. However, card networks offer substantially reduced interchange categories for commercial card transactions when Level 2 data is submitted. These preferential rates recognize that detailed transaction data provides issuers with better expense tracking capabilities that justify the premium card products. The interchange reduction for submitting Level 2 data typically ranges from 0.40% to 0.80% depending on the specific card type and transaction category.
Level 2 data submission is most beneficial for businesses that regularly process business-to-business transactions, accept government purchasing cards, or serve corporate clients with company cards. To qualify for Level 2 interchange rates, merchants need payment gateways or point-of-sale systems that support Level 2 data transmission, business processes that capture required data at time of sale (such as customer PO numbers and tax amounts), and proper transaction coding that flags commercial cards and triggers Level 2 data submission. Merchants processing significant commercial card volume should prioritize Level 2 data capability when selecting payment solutions, as the interchange savings typically far exceed any technology costs.
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