For businesses that accept a significant volume of commercial card payments, processing fees can become a substantial expense. But the rate a business pays is not always fixed.
One of the biggest opportunities to reduce eligible B2B card costs is Level 3 data. The concept is straightforward: commercial card transactions can qualify for lower interchange rates when additional transaction details are provided to the card network.
The challenge for Business Central users is making sure that information actually reaches the processor.
What Is Level 3 Data?
Card networks use different levels of transaction data when determining interchange rates.
Level 1 typically includes basic information such as the transaction amount and merchant details. Level 2 adds information such as tax and customer codes. Level 3 goes further, including detailed line-item information such as product descriptions, quantities, unit prices, and other purchasing data.
For eligible commercial card transactions, providing this additional information can help businesses qualify for more favourable interchange rates.
The important point is that much of this information may already exist inside Microsoft Dynamics 365 Business Central.
The Business Central Data Advantage
Business Central contains detailed information about invoices and sales transactions. Product codes, quantities, prices, purchase order numbers, tax amounts, and other fields may already be available when a customer makes a payment.
If the payment integration only sends the basic transaction amount to the processor, however, that additional data never reaches the card network.
The business can then end up paying a higher interchange rate even though the information required for better qualification was already sitting inside the ERP.
That makes the payment integration itself an important part of the cost equation.
Why This Matters for B2B Payments
Level 3 data is particularly relevant for organizations that process commercial, purchasing, or corporate cards.
A distributor, manufacturer, government contractor, or other B2B organization may process relatively large transactions where even a small difference in the effective processing rate can add up quickly.
For these businesses, optimizing how payment data moves between Business Central and the processor can be more valuable than simply negotiating a lower headline processing rate.
It is also important to understand the distinction between interchange and processor fees. Interchange is determined by the card networks and issuing banks, while processors add their own pricing and fees. Improving transaction qualification addresses one part of the overall cost structure.
What Business Central Users Should Check
If your organization processes a significant amount of commercial card volume, start by reviewing your current transactions.
Ask your processor how many eligible transactions qualify for Level 3 rates and how many are being downgraded. Then determine whether your Business Central payment integration is passing the required data.
It is also worth reviewing your processor agreement and monthly statements to understand exactly what you are paying.
Visa's commercial card programs have also been evolving, making it increasingly important for businesses to understand how enhanced transaction data is handled and whether their payment infrastructure can support current requirements.
The right integration can turn information that is already captured during the sales process into a tool for controlling payment costs.
Making Better Use of the Data You Already Have
For Business Central users, reducing B2B card fees does not necessarily require changing processors or changing how customers pay.
Sometimes the opportunity is already inside the ERP.
When detailed transaction information flows from Business Central to the processor and ultimately to the card network, eligible commercial card transactions have a better chance of receiving the interchange treatment they qualify for.
Want to see how Level 3 data can help reduce B2B payment costs? Read the full article, .