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Submitting Level 2 Data

Our company is an insurance company that takes insurance payments and would like to try and get the level 2 rates.  Is this something we can do given that our payments do not include tax, duty, or freight?  We would be able to provide the tax exempt status and PO Number.  Also, if we are able to get the rate, do we just set these values on the ShippingCharges object (the only place I could find them) and add it to the transaction, or is there another way to submit them?  Also if so, is it just the 5 fields (tax, tax exempt status, duty, freight, po number) or is there documentation that explains otherwise?  Thank you for your help.


No, all will not qualify for level 2. The rules vary by card brand, for example:


  • Visa Level 2: Sales tax amount must be greater than $0.00, but no less than 0.1% and no greater than 22% of the transaction amount. (I pulled from old article I wrote so exact amounts may have changed)
  • MasterCard Level II: Data includes the entry of customer code, card acceptor type, tax ID and sales tax.

You brought up duty and freight which are part of level 3 requirements. (Visa Level III minimum data requirements include: Summary Record – Discount Amount, Freight/Shipping Amount, Duty Amount and Account Number and Line Item Detail Record – Item Sequence Number, Item Commodity Code, Item Descriptor, Product Code, Quantity, Unit of Measure, Unit Cost, and Discount per Line Item, Line Item Total, and Line Item Detail Indicator.) Level 3 does not require a specific amount, fields can have a zero amount or number.


Here is current article about does not support level 3 with CIM, but it's an idea that's been accepted for future development.


If or when supports level 3 for your integration type, you could qualify for level 3.

Payment Gateway and Merchant Services Consultant

Thank you for your reply.  So to clarify, since we are not able to charge sales tax, we can not qualify?


We are a company that sells Workers Compensation insurance.  All of our transactions are business to business and we are not allowed to charge sales tax.


We aren't interested in the level 3 at this point, I just included those fields because on it indicated in their faq that these fields were level 2 fields.

That's correct, you cannot qualify Visa and MasterCard transactions for level 2 because you cannot provide a valid sales tax amount.

Payment Gateway and Merchant Services Consultant

So if you sell to a business located in another state and you're not required to charge them sales tax, you cannot get level II ?


Same goes for companies in Oregon that don't charge sales tax?



That's correct. If it's a qualifying card, you need sales tax.

Level 3 is the solution card brands created for B2B.  No sales tax required. If you want the benefit, at this time you need an alternative gateway.

Payment Gateway and Merchant Services Consultant