Level 3 Credit Card Processing, Is it right for you?

With the many challenges facing contractors today, it’s no wonder so many are relying on their banks or existing credit card processors to set them up to accept Government P-cards.

It’s regrettable that many in the contracting industry are unaware of the advantages available for accepting these cards correctly

To support acceptance of corporate & gov P-cards, MC & Visa have reduced interchange rates associated with these cards if Level-3 processing data is included in the credit card transaction.

By providing Level 3 data, a government contractor can substantially reduce their credit card processing fees – sometimes by up to 40%.


Level 3 processing savings

This savings is available for any size ticket,  HOWEVER savings can be further increased for contractors by enrolling in the special GSA Smartpay “Large Ticket” program. This w qualifies your transactions of $5,984.61 and above at 1.2%

Statics show us that at least 3 out of 5 GSA schedule vendors have not been set up to accept Purchase cards correctly. Most business have been set up to accept standard consumer credit cards vs commercial and purchase cards.

This is unknowingly cutting into a vendors profit margin, on average by 1%-1.5%

One reason this is often overlooked is that Level 3 processing reclassifies a portion of the interchange fees businesses pay to accept credit cards, which is not related to the rate your processor charges. Interchange  fees amount to 75% and more, of the total fees a business pays to accept credit cards, interchange also goes back to the card issuing bank.

Credit card processors receive no incentive for offering you level 3 processing, nor are they required to make sure that contractors are properly set up to accept credit cards in the most efficient and economical matter.

Even if someone has good intentions and honestly trying to do a good job for you, their inexperience may be driving your costs up

Revolution Payments developed technology to help contractors meet the requirements resulting in qualifying for MasterCard and Visa Level 3 interchange rates adding from (point 85 to 1.5%) .85%-1.5% or more to your profit margins.

Level 3 processing is not for everyone, if your volume is lower and transactions are infrequent, level 3 processing may not be a good fit for you. That being said, if adding 1% and more to your profit margins, on your existing sales volumes has an impact on your business.

Visit our site for your no obligation level 3 rate quote.


Or call us at 888 790 3450