Meramak Bankcard Midwest Merchant Account Services

Level II credit card processing


Level II Credit Card Processing

Most government agencies such as HUD, and corporations in the private sector, now require Level II Data to be included with a sales transaction if accepting their purchasing cards.


Level I Data is a simple standard transaction. It only includes "total purchase amount" and "date of sale." A Level II credit card has additional information that is required for each purchase. For instance, an "authorization code" required by agencies and corporations.

The easiest way to accept a Level II credit card from a government agency or a private corporation is to use an online Virtual Terminal.
A Virtual Terminal is accessed through the Internet. It consists of a form to fill in with the information from your sales transaction. Enter the information and submit it. Within seconds the transaction is approved and your money will be deposited in your business bank account.

Internet processing requires a standard merchant account combined with an Internet Gateway.



HUD Business Rules -- Attachment 2

MasterCard Vendor Fact Sheet

MasterCard Vendor Account Definition:
* A MasterCard Vendor Account is an electronic payment system, commonly referred to as a “merchant account.”
* This account enables a business to accept credit card payments through a “virtual terminal” (Internet web site) or a “physical terminal” (storefront) for services rendered.
Reverse Auction Program Requirements:
* To participate in the Reverse Auction Program, each bidder must establish and maintain a vendor account with a MasterCard credit card company or merchant account provider.
* This account must be able to process payments through an online terminal with a Merchant Category Code (MCC) of “9399-Government Services.”
The Payment Process:
* The business first establishes a private bank account, which includes a business checking account.
* The business receives credit card information in the form of an “authorization code” from the Reverse Auction Program.
* The authorization code is entered into the virtual terminal, which initiates a direct deposit into the private bank account. This is similar to the “swiping” of a credit card through a physical terminal.
* The credit card information is sent to a processing bank.
* The processing bank ensures that there are appropriate funds in the account and transfers the money to the business’ account within 2 to 3 business days.
Establishing a Vendor Account:
* A business can establish a MasterCard Vendor Account through any merchant account provider or through a MasterCard company. For more information, please go to or call 1-888-336-4872.
* To apply for vendor status, you must provide your business information by completing an online application.
* Approval usually occurs within two to three business days and virtual terminal setup occurs within five to six business days.
* There are fees associated with establishing and maintaining a vendor account. These fees vary according to the business needs and the provider. (The Reverse Auction Program does not pay activation or transaction fees associated with an account; the bidder must factor any additional costs into the bid per inspection.)

Level II Data (POS/Customer Code):
* Your account must use the requirements under “Level II Data.”
* A Level I credit card is insufficient for the Reverse Auction Program. It is a standard card for a purchase transaction and only includes information such as “total purchase amount” and “date.”
* A Level II credit card has additional information that is required for each purchase. This additional information includes the “authorization code,” which is necessary for payment.



If you want to have a merchant account setup for you, call us or fill out our pre-application and contact form online. 1-888-336-4872.