Benefits for B2B companies to accelerate Your Cash Flow: Leveraging Level 2 & Level 3 Processing for Quicker Payments
In the realm of B2B transactions, cash flow is king. Every day counts for sellers who must navigate the challenges of waiting 45 days or more for payments. Enter Level 2 and Level 3 processing—a game-changer that expedites payment cycles and offers additional benefits for sellers and buyers. Let’s delve into what Level 2 and Level 3 processing entail and how they can revolutionize your business’s financial operations.
Understanding Level 2 and Level 3 Processing
Level 2 and Level 3 processing refer to enhanced data requirements for credit card transactions beyond the standard Level 1 processing. These levels provide more detailed information about each transaction, which helps facilitate faster and more secure payments, particularly in B2B environments where transactions tend to be larger and more complex.
Level 2 Processing: Level 2 processing requires additional data beyond basic credit card information. Typically, it includes details such as sales tax amount and customer code. By providing this information, sellers qualify for lower interchange fees, making transactions more cost-effective.
Level 3 Processing: Level 3 processing goes even further by requiring extensive line-item details for each transaction. This includes item descriptions, quantities, unit costs, and other specifics relevant to the purchase. While more data entry is required upfront, Level 3 processing significantly reduces interchange fees and enhances transaction transparency. #Cashflow #DataDrivenDecisions #Profits
Read more at: https://www.pymnts.com/news/b2b-payments/2024/nuvo-adds-equifax-credit-reports-to-trade-credit-management-platform/