Insights

Understanding Level 2/3 Data

In the context of credit card processing, processing Level 2/3 data refers to transmitting specific data points from the merchant to the processor to receive more favorable merchant fees/rates.

Level 2 fields include the following:

• Purchase order number
• Destination zip
• Tax indicator and amount
• Requestor name
• Destination address, city, and state
• VAT ID

Level 3 data enriches the data with additional information or context, such as adding geographic or demographic data to customer records.

Level 3 fields include:

• Item ID or SKU and description
• Unit and extended price
• Unit of measure (each)
• Commodity code
• Line discount

Level 2/3 data can be seen as an intermediate data analysis phase between raw and fully utilized.

Data Collection Challenges

For companies looking to leverage Level 2/3 data for credit card transactions, one of the most challenging obstacles can be collecting and transmitting the right data. Some of these challenges are as follows.

Lack of Infrastructure

Companies sometimes lack the infrastructure to effectively collect, store, and manage data, making it difficult to collect from multiple sources or ensure its quality and consistency.

Operating in Silos

Data may be stored in different systems or departments, leading to silos where data is not shared across the organization as needed, limiting the company's ability to gain insights and make data-driven decisions.

Privacy and Security Concerns

Organizations must comply with data privacy regulations and ensure the security of the data they collect from customers. But, implementing the appropriate security measures and protocols can be costly and time-consuming.

Unskilled Personnel

Collecting and analyzing data requires specific technical skills and expertise, and companies may need help finding qualified personnel or training existing staff in effective collection and analysis.

Data Overload

With the increasing amount of data available, companies can experience data overload or collect more than they can effectively use or analyze, leading to wasted resources and limited insights.

Level 2/3 Data Benefits

Level 2 and Level 3 data are each important for credit card processing across all channels including call in orders, digital commerce, and even retail commerce.

Streamlined JD Edwards Credit Card Processing

Level 2 and 3 data can help streamline credit card processing and reconciliation, and potentially lower transaction costs. For example, line-item details can help a merchant identify the most popular, profitable products or services and use that information to optimize pricing and inform marketing strategies. Including Level 3 data, such as tax and shipping information, can help reduce the risk of chargebacks or disputes, providing a more complete transaction picture.

If Level 2/3 data is leveraged for credit card transactions, it can often save organizations money, and include benefits such as:

Interchange Savings

Level 2/3 data processing is most common among merchants that handle large-scale B2B transactions. Implementing this solution can enable significant savings on interchange rates, which can be as high as 1% lower than a typical transaction. For example, if a merchant makes a $20,000 sale, Level 3 data could result in over $100 in interchange savings. 

Improved Security and Flexibility

Level 2/3 data can improve security and flexibility for JD Edwards credit card transactions in several ways. It allows for more robust fraud detection and prevention, including additional information such as the merchant's name and location, transaction amount, and the type of goods or services purchased. Fraud detection systems can flag potentially fraudulent transactions for further review.

SmarterCommerce Improves Your Level 2/3 Data Collection

Investing in Level 2/3 data is important for the increased security and cost savings it affords your business. Even better, Level 2/3 data presents many future possibilities, including machine learning and predictive analysis, improved fraud detection, and personalized customer experiences.

When you partner with SmarterCommerce, our payments solution automatically gathers the required Level 2/3 data from JD Edwards and transmits it for sales order and invoice credit card payments, accessing the required information from the source and transmitting it in a manner compatible with the merchant's processor.

Overall, level  2/3 data can positively impact JD Edwards payment processing and the commerce industry as a whole. When you are ready to learn more about how your business can leverage the power of 2/3 data, reach out to our experts at SmarterCommerce.