B2B Merchant Services

Understanding the Basics of

Level 1 Credit Cards

Level 1 cards are used in business-to-consumer commerce, require the least amount of data to be included within a transaction. Because level 1 transactions require less data, they process at lower interchange rates compared to level 2 and 3 transactions.

Level 2 Credit Cards

Level 2 credit cards are corporate cards, typically used for business expenses. Level 2 transactions can be processed without special requirements.

Level 3 Credit Cards

Level 3 cards, commonly known as purchase cards, are used by government agencies and large corporations. Level 3 transactions require more elements to qualify for the lowest processing rate.

OBANC provides business merchants with a card optimization program that pends cards and prevents transactions from being downgraded, which results in lower interchange rates for transactions. Level 2 and Level 3 cards are downgraded (assessed additional fees) when required data elements are missing. To prevent downgrades, it is important to understand what is required for a transaction to process at the lowest rate. By switching to OBANC, you can save up to 70 basis points on level 2 and 3 transactions!