What Are Interchange Rates?

Level 1 , Level 2 and Level 3 interchange rates are different levels of data that merchants provide to credit card companies when processing a transaction. The more data a merchant gives, the lower the interchange rate will be.



Merchants who process a lot of business-to-business (B2B) or business-to-government (B2G) transactions can save money by using Level 3 interchange rates. This is because Level 3 data provides more information about the transaction, which helps credit card companies assess the fraud risk.

Cost Savings

By including detailed transaction information through Level III Advantage, businesses can qualify for lower interchange rates and reduce their processing expenses. This translates to increased profitability and improved bottom line.

Risk Mitigation

Level III Advantage empowers merchants to mitigate risks associated with credit card transactions. By complying with Level 2 and Level 3 data submission requirements, businesses enhance transaction security and reduce exposure to potential losses.

Competitive Advantage

Level III Advantage enables businesses to outperform competitors by securing optimized interchange rates. This competitive edge allows merchants to offer better pricing to customers, attract new business partners and meet the requirements of corporate buyers.

Interchange Rates FAQ

Interchange rates are set by credit card companies such as Mastercard and Visa. These card companies typically publish updated interchange rates in April and October.

Visa and Mastercard each have unique data demands to qualify for Level 2 and Level 3 rates. With NMI, we automatically optimize this data so merchants can qualify for higher savings on each transaction.

B2B and B2G merchants have “tiers” or “levels,” referred to as Annual Account Spend. It’s a way of categorizing cards based on how much your customers spend each year. Remember, the more they spend on a business card, the higher the rates will be.

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