Docs
Payments
Card
Level 2/3

Level 2/3

Card payment processing is categorized into three levels: Level 1, Level 2, and Level 3. These levels vary based on the amount of payment information required. Level 1 requires the least information, generally resulting in higher interchange fees. Level 2 and Level 3 require more detailed data, which can lower interchange fees. While most businesses process at Level 1, fees can be reduced for merchants handling commercial credit cards by providing the additional data needed for Level 2 and Level 3 payments.

Card Processing Levels

  • Level 1: Basic transaction details like the amount, date, and merchant's name.
  • Level 2: Includes additional data such as taxes, customer details, and merchant ZIP code. With Level 2, interchange costs are lower than with Level 1.
  • Level 3: Contains the most detailed information, including line-item details, shipping addresses, and invoice numbers. With Level 3, interchange costs are lower than Level 1 or 2.

Eligibility Requirements

LEVEL 2LEVEL 3
Merchant Requirements
Merchant Category Codes (MCC)Refer to ineligible MCCs
Annual transaction volume1-6M transactions20k-1M transactions
Payment Requirements
Card brandsVisa, Mastercard, and AmexVisa and Mastercard
Card typesCommercial credit cards (business, corporate, and purchasing)
Sales taxVisa: sales tax amount must be between 0.1% and 22% of the total payment amount

Mastercard: sales tax amount must be between 0.1% and 30% of the total payment amount

No sales tax requirements

Ineligible MCCs

The following MCCs are not eligible for Level 2 and 3 rates. If you are using Tilled’s hosted merchant application, you can customize the MCC options to prevent merchants from mistakenly selecting an ineligible MCC.

MCCDESCRIPTION
3000-3299, 4511Airlines/Passenger Transport
3351-3500, 7512Car Rentals/Auto Rental
4411Cruise Lines
5962, 5966, 5967High Risk Direct Marketing
3501-4010, 7011Hotels/Lodging
4112Passenger Railways
5812, 5814Restaurants
4722Travel Agents
7513Truck and Utility Trailer Rentals

Including Level 2/3 Data with a Payment

When collecting a payment using the Payment IntentsAPI, pass in the required attributes under the level3 field.

Data Requirements

DATA FIELDLEVEL 1LEVEL 2LEVEL 3
Card number
Card expiration date
CVV code
Transaction amount
Date
Merchant’s name
Merchant category code
Customer reference number
Sales tax amount
Tax ID
Merchant state code
Merchant ZIP code
Requestor name
Destination address
Destination state
Invoice number
Order number
Duty amount
Item ID or SKU
Item description
Item quantity
Item unit of measure
Item commodity code
Freight amount
Ship-from zip code
Ship-to zip code
Line discount