Best Practices for Accepting Government Purchase Cards (GPC) – Merchant Accounts

Do You Accept Government Credit Cards

sjadmin1 — Thu, 01 Aug 2024 19:21:48 +0000

Do You Accept Government Credit Cards… If not, you are most likely missing opportunities you didn’t even know about.

Although commonly referred to as the federal contracting market, it’s more accurately described as the federal purchasing market. Why? Because not everything the government buys requires a formal contract. In fact, the most common purchasing method for the government mirrors that of everyday consumers: using a credit card. Last year alone, government buyers made over 95 million credit card transactions, totaling approximately $29 billion.

Chances are, your business is better equipped to accept credit card payments than navigate the lengthy and complex process of securing a federal contract. However, the challenge lies in the fact that these credit card purchases are not posted for bid—they aren’t announced, competed for, or advertised. Despite this, government buyers make these transactions over 250,000 times daily.

If you’re interested in tapping into this hidden market of federal credit card purchases, give us a call today. Aside from gaining new opportunities, Visa and MasterCard have created special interchange rates (level 3 credit card processing) for accepting government purchase cards. This program, when set up properly, this can save you 30%-40%.

Questions? Call 888 790 3450 or email info@ revolution-payments.com

How I saved this government contractor over $4,600 per month in fees w/o changing their rate

sjadmin1 — Thu, 16 Jun 2022 18:54:47 +0000

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

Best Practices for Accepting Government Purchase Cards (GPC)

sjadmin1 — Fri, 29 Apr 2016 21:10:01 +0000

When it comes to accepting Government & non-government purchase (GPC) & commercial cards implement these best practices to keep your business competitive, compliant while controlling your costs.

Implemented properly your cost for accepting
Business-to-Business (B2B) and Business-to-Government (B2G), Government Purchase Card (GPC)
transactions should be Under 1.86%.

Include Level-3 Payment Detail: – To encourage merchant participation
and support of this program, Visa and MasterCard created special
interchange rates that reduce interchange by 30%-40% allowing vendors
reclaim a large percentage of processing margins.

Do not use credit card terminals: Credit card terminals are not
capable of supporting the additional requirements for level 3. Using a
terminal results in 30%-40% higher interchange rates before your
processor adds their fee.

Use a Level-3 Processing capable virtual terminal,
preferably a web based solution to prevent customers sensitive credit
card data from being stored on your local PC’s.

Enter a zip code for keyed transactions: Chances are you’ve paid more
than you should for your keyed or interchange transactions by
triggering an interchange reclassification for skipping the zip code
field. Standard, EIRF and Non-Qualified listed on your statement are
indications of these culprits.

FYI, when your set up properly a zip code “match” is not required but
does have to be entered.

Auto Settle/Batch: Make sure you batch or settle your transactions
daily. Visa and MasterCard require transactions be settled within
24 hours if you swipe transactions and 48 hours if you key or process via
the internet. Transactions not settled within this time frame will
cause everything in this batch to downgrade.

Pre Authorization: If you perform pre-authorization’s make sure the
settled amount equals the pre authorization otherwise it will result
in reclassifying the transaction to downgrade. Pre authorizations
also need to be settled in 24 hours for swiped and 48 hours for keyed
& internet transactions.

Cost Plus Pricing: Insist on cost plus pricing, otherwise you will be
unable to receive all the incentive rates available. This pricing
method will process your credit card transactions at their respective
interchange rate, with only a small fee added on top. Interchange is
the base rate for each type of credit card issued by Visa, MasterCard
and Discover.

Since interchange is the same regardless of the
processor you choose, it makes it easy to compare one processor from
the next since the only thing that changes is the processors markup.

Work with an experienced Level-3 Payment Consultant:
Setting up a merchant account to accept commercial and government
cards is much different than a standard retail account.

Knowing what determines your rates and
the fees that impacting your bottom line cost, help you make more
informed decisions when choosing a processing partner.

Have questions about your business? We’d love to hear from you

Sean Jones

Revolution Payments

888-790-3450

sean@revolution-payments.com

Revolution Payments is a is a full-service payment provider of electronic transaction processing services for
(B2B) business-to-business and (B2G) business-to-government

merchants with over 20 years’ experience.