A credit card is driven due to the information that is on the back of the credit card magnetic stripe. The additional amount of data is utilized for the level of security. The data is only found when you swipe the credit card during the transaction. It has an additional amount of data, such as country code and encryption pin.
Merchant-driven that is specialized for an industry that would need a start date and an end date. It is used for all transactions that have a date range of usage. IE: Hotels, Airplane, Railroad, Rental Cards and Cruise Ships. It is not dependent on a swipe transaction, as long as the data is being passed.
The Merchant would send the data to the Payment Gateway, then the Payment Gateway will send to the Processor, then the Processor passes to the credit card company. Once the credit card company receives the settlement file, it will determine what the interchange rate will be.
Difference between Track 3 Data and Level 3 Data
There are different types of data that are being passed. Many people confuse Track 3 with Level 3, but they are completely different sets of data.