How Using Level 3 Data Can Reduce Credit Card Processing Fees for Sage 100


July 1, 2024 | Anthony Volpe

How Using Level 3 Data Can Reduce Credit Card Processing Fees for Sage 100

In today's competitive business environment, every dollar saved can contribute significantly to a company's bottom line. One often overlooked area for potential savings is credit card processing fees. For businesses using Sage 100, leveraging Level 3 data can lead to substantial reductions in these fees, offering a straightforward way to enhance profitability.

Understanding Credit Card Processing Fees

Credit card processing fees are typically divided into three levels, with Level 3 offering the most detailed information. While Level 1 and Level 2 data include basic transaction details like merchant name, transaction amount, and tax amount, Level 3 data provides a comprehensive breakdown, including:

  • Line-item details: Each item purchased, including description, quantity, and price.
  • Tax information: Detailed tax information for each item.
  • Customer code: A code that identifies the customer.
  • Shipping data: Information about shipping, such as ship-from and ship-to postal codes.

Benefits of Level 3 Data

Using Level 3 data in transactions can significantly reduce interchange rates, the fees that businesses pay to credit card companies for processing transactions. Here's how it benefits Sage 100 users:

  1. Lower Interchange Rates: By providing detailed transaction data, businesses can qualify for lower interchange rates, especially on commercial card transactions. This can lead to savings of up to 1.5% per transaction.
  2. Improved Transaction Security: The detailed data helps reduce the risk of fraud, as each transaction is documented with granular details.
  3. Enhanced Customer Insights: Businesses can gain deeper insights into purchasing patterns and customer behavior, which can inform better decision-making and strategic planning.
  4. Streamlined Reporting and Reconciliation: Detailed data simplifies the process of transaction reporting and reconciliation, saving time and reducing errors.

Steps to Get Started

  1. Consult with Your Payment Processor: Ensure your payment processor supports Level 3 data and discuss the potential savings and benefits.
  2. Enable Level 3 Data in Sage 100: To enable check the ‘Include Level 3 Data’ under Payment Type Maintenance in Accounts Receivable Setup. This field is available only if Credit Card is selected in the Payment Method field and the Allow Corporate Cards check box is selected.

  1. Train Your Team: Ensure your accounting and finance teams understand how to input and manage Level 3 data in transactions.


For Sage 100 users, leveraging Level 3 data is a smart, efficient way to reduce credit card processing fees. By providing detailed transaction information, businesses can unlock lower interchange rates, enhance security, gain valuable customer insights, and streamline their financial processes. It's a win-win situation that contributes directly to improving the bottom line. Implementing Level 3 data can be straightforward with the right guidance and tools.

For more information and assistance, contact LLB Partners to help you get started on optimizing your payment processing and maximizing your savings.


Written By Anthony Volpe

Anthony has been a member of the LLB team since 2009. He works primarily with Sage 100 and Sage CRM. Exposure to various industries helps him analyze the existing business practices of a company and make recommendations for improvements that will maximize productivity of Sage products.



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