Interchange Rates

We want to ensure you aren't leaving money on the table. By providing extra transaction data—known as Level 2 (L2) and Level 3 (L3) data—to payment processors, your business can qualify for significantly lower interchange rates on corporate, industrial, and government card transactions.

This guide will walk you through configuring your Interchange Settings to match your Stripe merchant contract and business model.


Why L2/L3 Data Matters

Interchange fees are the costs paid between banks for processing transactions. Credit card networks (Visa/Mastercard) offer lower rates for B2B and B2G transactions if you provide additional "enhanced" data.

  • Level 1: Standard data (Card number, expiry, etc.). Used for B2C.

  • Level 2: Includes sales tax and a customer/order reference ID.

  • Level 3: Includes line-item details, shipping info, and duty fees. Typically offers the highest savings.

These settings are only effective if your Stripe merchant account has been contracted for L2/L3 rate savings. Please verify your specific agreement with Stripe before finalizing these settings.


Configure Data Level

To access these features, navigate to PayPack → Setup → PayPack Configuration.

1. Select Your Business Model

Different business models require different data structures to trigger lower rates. Select the one that best fits your primary operation:

  • B2C (Business to Consumer): Standard processing. High-level data is rarely required here.

  • B2B (Business to Business): Optimizes for corporate and purchasing cards. Requires Level 2 data at minimum.

  • B2G (Business to Government): The most stringent requirements. Usually requires Level 3 data to meet government procurement standards.

2. Level 2 & Level 3 Selection

Choose the Card Data Level transmission based on your Stripe contract:

Select Card Data Level.png
  • Level 2: Sends tax amounts and basic customer/order reference identifiers.

  • Level 3: Sends full line-item breakdowns (quantity, unit price, description).


Custom Reference Fields

To help your customers identify charges and reduce chargebacks, Paypack.ai allows you to map specific fields from your ERP (like NetSuite) directly to the cardholder’s statement.

You can choose which data points populate the Customer Reference Field and the Order Reference Field.

Custom Reference Fields for L2.png
Field NameTypical Use CaseExample
Customer ReferenceCustomer Internal ID or transaction-specific fields (e.g. internalid)10023 or PO #10293
Order ReferenceTransaction-specific identifiers (e.g. otherrefnum)#10293

Why this helps:

By mapping your NetSuite PO # to the Order Reference Field, the Purchase Order number appears directly on the cardholder’s credit card statement. This allows their accounting team to immediately reconcile the charge, reducing "unrecognized transaction" inquiries.


Best Practices

  • Consistency is Key: Ensure the fields you map in PayPack (e.g. otherrefnum) actually contain data in your ERP, or the field will be sent as blank.

  • Tax Accuracy: Level 2 and 3 savings often require a valid tax amount. Ensure your tax calculation engine is syncing correctly with Paypack.

  • Verify Savings: Check your Stripe "Interchange-plus" reporting after 30 days of enabling these settings to see the impact on your effective rate.

Was this article helpful?
0 out of 0 found this helpful

More resources