Stax Bill payments allow you to automatically benefit from level 2 processing to potentially qualify for lower processing rates.
Level 2 Processing Overview
The card processing fee level your business uses is related to the amount of information collected from a customer. By default, businesses process at Level 1, meaning each transaction includes the card number, card expiration, and zip/ postal code. To process at Level 2, the business must collect additional information about the customer.
Note: Level 2 processing levels are only available for business-to-business or government transaction types.
In Stax Bill payments, most accounts are automatically configured for L2 processing, offering you a way to lower your credit card processing costs. Read more about how Level 2 processing can benefit your business.
Depending on the business card type, you can send in the required L2 data using our API when making a charge.
Warning: Note that transactions will not automatically process as L2 by sending in the required fields, as it is ultimately the card brand making the final decision.
Taking into consideration the following requirements will ensure your best likelihood for a transaction to qualify for L2 processing:
- Level 1 data must be supplied (card number, CVV, expiration date, Zip/Postal code).
- A supported business card must be used (Mastercard/VISA).
- A PO number/customer code must be supplied.
- A shipping amount must be supplied, but it can be $0.00.
- A tax rate must be supplied, be greater than zero, and must be in a reasonable tax rate range (0.1% to 30% of the transaction’s total).
Stax Bill will automatically send the required level 2 processing when available.