Level 2 Data for Lower Transaction Rates

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Merchant Accounts Payment Gateway

Visa and MasterCard offer special credit cards to businesses and government agencies that benefit from lower transaction rates. These credit cards are often known as business, corporate, or purchasing cards. However, most merchants do not benefit from these lower transaction rates without additional work on their end. In order to qualify for the lowest possible rate, every transaction needs to include additional information.

The motivation behind the additional transaction data is to help businesses and governments reconcile credit card transactions. To do this, the transaction needs to include a purchase order number. Additionally, the credit card companies want shipping and sales tax data for the transaction. The credit card industry refers to this set of data as Level 2 Data (or Level II).

Some payment gateways, like Authorize.Net & PayPal, offer a recurring billing API. However, these APIs do not submit invoice numbers for the transactions and thus do not qualify for level II data processing. Other payment gateway abstractions, like ActiveMerchant, also do not include level II data.

At Recurly, we are constantly refining our integrations with the various payment gateways and card processors so you can reliably process more transactions and qualify for the best rate. If you are using Recurly, your purchase transactions will now include level II data automatically.

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