Level 2 Credit Card Processing

Level 2 credit card processingCredit card processing fits into three different levels: Level 1, Level 2, and Level 3. As you go up levels, your business is required to add more information in order to process a transaction. Typically, most businesses can stay at Level 1, however, depending on the type of cards you take, the amount you’re processing, and the information you need to gather in order to secure a transaction, you might qualify for a higher level. This includes Level 2 credit card processing and Level 3 credit card processing.

How Level 2 Credit Card Processing Works

As mentioned above, Level 2 credit card processing works similar to Level 1 credit card processing. However, the higher levels you go when accepting payments, the more information is required in order to process. With Level 1, card data is typically associated with consumer transactions. With Level 2, you’re most likely a B2B or corporate business that requires information such as customer codes, tax amount, tax identification, and more.

Common Questions about Level 2 Credit Card Processing

What businesses typically qualify for Level 2 processing?

While most businesses can stick to Level 1 processing, there are certain types of businesses who benefit from Level 2 processing. Those businesses sometimes include:

Sometimes there is a rare occasion when a retail merchant encounters Level 2 card data when they swipe a business credit card. The payment gateway may ask for a customer code or “PO number”. A retail merchant can usually bypass this by entering the three or four digit CVV code on the credit card.

Is it more expensive to process Level 2 credit card transactions?

Not usually. In fact, Level 2 and Level 3 card data qualifies for lower Visa and MasterCard interchanges rates. For more on pricing and interchange, click here.

How do I submit Level 2 credit card processing transactions?

It’s easy! Just submit your Level 2 transactions attached to any credit card transaction using retail, MOTO, eCommerce, virtual terminals, and payment gateways.

What information do I need to provide to process a Level 2 credit card transaction?

To submit a Level 2 credit card processing transaction, you might be asked for the following information:

  • Purchase Order Number OR Purchase Card Customer Code
  • Sales Tax Amount (must be at least 0.01% of sales amount)

Is it safe and secure?

Like all our credit card processing measures, Level 2 credit card processing is just as safe and secure. In fact, it’s typically more secure because it requires an extra level of information in order to process the transaction. This reduces any potential fraud or chargebacks to your business.


Ready to get set up with Level 2 credit card processing or just need credit card processing with Gravity Payments in general? Sign up with us below! We’ll help reduce the costs and headaches of accepting credit card payments by providing simple, fair, and seamless solutions for your business.

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 Source: manufacturer website

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