With the many challenges facing contractors today, many have relied on their banks to set-up their credit card processing. It’s regrettable that many in the contracting industry are unaware of the advantages that correct processing solutions can present.

Many years ago MasterCard and Visa have created special interchange rates to support purchase card programs by reducing the supplier’s transaction costs if Level III line item detail is entered when processing a transaction.

Level III processing can lower the supplier’s discount rate by as much as 1.0% – 1.5% when compared to non-Level III credit card processing, depending on the card type and the size of the transaction.

These special rates are intended to be an incentive to pass Level III, which in turn will assist buyers in managing their purchase card programs Even with the considerable advantages a contractor can receive from level III processing, it is used infrequently.

In fact, statistics show us at level 3 out of 5 contractors are not set up to accept purchasing cards properly.

The fees for accepting credit cards are a part of doing business however, having an understanding of rates and the fees that impact your bottom line will empower you to may more informed decisions Questions? Give us a call 888 790 3450 info@revolution-payments.com www.revolution-payments.com

Implement 21^st century payment processing technology is required to keep your business both competitive and compliant.

Accepting GSA SmartPay cards requires processing technology able to capture level II and level III payment data. Government & Commercial cards accepted without level 3 detail qualify at different codes and cost roughly 1% more, regardless of the rate your processor is charging you.

Level 3 data allows you to reduce the cost of accepting GSA SmartPay cards by as much as 40%.

What Is Level III Data?

Level III data is information you typically find on an invoice that is included with a credit card transaction. An easy way to explain level III data is to think of an invoice, information you’d generally find on an invoice that is included. The “what”, “how” and “who” of a sale.

Level 3 processing was created to prevent excess spending on government cards. The level III detail, entered at the sale, showed up the governments bank statement to help them reconcile charges.  Level 3 processing has been around for more than 15 years, offers tremendous savings, yet 3 out of 5 vendors are not set up, many that are, are not set up to receive 100% of the lower interchange rates.

How Do You Take Advantage Of Level III Interchange Rates?

First, your processor has to set you up properly and you need a virtual terminal or software able to capture the level III data fields. Some of these fields are below. Some programs can auto populate this info, but you may be working with an agency that requires you to manually enter level 3 detail.  Unfortunately many vendors are using equipment that is outdated equipment along with  bad processing practices.

Visa Level III Requirements

Freight / Shipping Amount Unit of Cost
Discount Amount Unit of Measure
Duty Amount Discount Per Line Item and Line Item Total
Item Commodity Code Ship-To Zip Code Product Code Ship-From Zip Code
Item Descriptor Destination Country
Quantity VAT information (tax amount, rate, invoice #)

MasterCard Level III Requirements
Tax Amount Item Quantity
Customer Code (for Purchasing Cards) Unit of Measure
Tax ID Extended Item Amount Tax Indicator Description
Product Code Debit or Credit Indicator

With greater and greater utilization of Government Purchase Cards, it is now of even of greater importance to properly manage your account when Accepting GSA SmartPay Cards.   This will ensure you receive Visa and MasterCard’s level III  interchange rates for Accepting GSA SmartPay Cards, and that your business is processing as efficiently as possible.

If you accept a government P card without providing level III payment detail, you’re losing 1% of potential revenue that has NOTHING to do with the rate your processor is charging you.

Remember, interchange amounts to roughly 80% of your expense for accepting credit cards, commercial cards accepted without level 3 detail qualify at different codes, and cost 1% more before your processor adds their fee.

Questions About Level III Data Or Accepting Government Purchase Cards, Give Us A Call  888 790 3450