level 3 credit card processing – Merchant Accounts

GSA Large Ticket Interchange — What Government Contractors Are Leaving on the Table

sjadmin1 — Fri, 04 Sep 2026 01:38:10 +0000

The GSA large ticket interchange program is a Visa interchange category specifically created for government purchase card transactions above a certain dollar threshold. For government contractors — including GSA Schedule vendors, SEWP contract holders, and DoD suppliers — who regularly receive large purchase card payments from federal agencies, this program can significantly reduce the interchange cost on every eligible transaction. The challenge is that most contractors are either unaware it exists, assume they are already enrolled, or are set up in a way that does not actually qualify.

Most government contractors processing large purchase card transactions have never heard of the Visa GSA large ticket interchange program. Those who have often assume they are already enrolled. Most are not — and the cost difference on every qualifying transaction is significant.

What Is the GSA Large Ticket Interchange Program?

The Visa GSA large ticket interchange program is a specialized interchange category that applies to eligible government purchase card transactions above a specific dollar threshold. It offers a significantly lower interchange rate than the standard government purchase card rate — but qualifying for it requires more than simply processing a large transaction. The merchant account must be configured correctly, Level 3 line-item data must be submitted with each eligible transaction, and the card must be a GSA-issued purchasing card rather than a travel and entertainment card.

As of August 2026, the Visa GSA large ticket interchange rate is 1.20% + $39.00 per transaction for eligible transactions of $5,557.14 and above. These rates are subject to change — contractors should verify current thresholds with their processor.

Current Rates — August 2026

Rates are published by Visa and subject to change. The figures below reflect Visa’s interchange schedule effective April 18, 2026. Verify current rates with your processor before making business decisions based on these figures.

Program	Threshold	Rate (August 2026)	Requirement
Non-Qualified	Any amount	2.95% + $0.10	Missing or incomplete data
Standard P-Card	Any amount	2.70% + $0.10	Basic transaction data only
CEDP Verified / Product 3	Any amount	1.75% + $0.10	Level 3 line-item data required
Visa GSA Large Ticket	$5,557.14 and above	1.20% + $39.00	Level 3 line-item data required

What the GSA Large Ticket Interchange Rate Means in Real Dollars

The difference between paying the standard P-card interchange rate and qualifying for the Visa GSA large ticket interchange rate is not theoretical. On large individual transactions the dollar difference per transaction is meaningful — and it compounds across every eligible payment processed over the course of a year.

Real Dollar Comparison — Same Transaction, Different Setup

Transaction Amount$10,000

Standard P-Card Rate (2.70% + $0.10)$270.10

CEDP Verified / Level 3 (1.75% + $0.10)$175.10

Visa GSA Large Ticket (1.20% + $39.00)$159.00

Savings vs. Standard P-Card Rate$111.10 per transaction

For a government contractor processing ten $10,000 purchase card transactions per month, that difference represents over $13,000 per year in unnecessary interchange costs — simply from not being enrolled in and qualifying for the GSA large ticket interchange program. On larger individual transactions the per-transaction savings are even more significant.

“The GSA large ticket interchange program has been available to government contractors for years. The vast majority have never been told about it — or are enrolled but not actually qualifying on every eligible transaction.”

Who Qualifies for the GSA Large Ticket Interchange Program

The Visa GSA large ticket interchange program applies specifically to government purchase card transactions — not all government payments and not all card types. Understanding exactly who qualifies is important before assuming the program applies to a specific merchant account.

GSA-issued Purchasing Cards only — the program applies to GSA SmartPay purchasing cards specifically. Travel and entertainment cards issued under GSA SmartPay are not eligible even above the threshold.
Visa transactions only — the GSA large ticket interchange program is a Visa program. Government transactions on Mastercard fall under separate programs with different rates and thresholds.
Transaction amount of $5,557.14 or above — transactions below this threshold do not qualify for the large ticket rate regardless of other factors. Splitting a large order into smaller transactions eliminates large ticket eligibility.
Level 3 line-item data required — the transaction must include complete Level 3 data. Without it the transaction will not qualify for the GSA large ticket rate even if every other requirement is met.
Non T&E merchant category — travel and entertainment merchant categories are explicitly excluded from the program.
Settlement within required timeframe — transactions must settle within the applicable timeframe. Card not present transactions settling beyond 48 hours risk downgrading to a higher interchange category.

Who This Applies To

Government contractors who commonly qualify include GSA Schedule vendors, SEWP contract holders, DoD suppliers, IT hardware and software vendors, medical supply companies, construction and facilities contractors, and professional services firms that invoice federal agencies for project-based work above the threshold.

Why Most Contractors Don’t Qualify for GSA Large Ticket Interchange

The most common reason government contractors do not qualify for the GSA large ticket interchange rate — even when they technically should — is that their merchant account is not configured to submit Level 3 line-item data correctly on every eligible transaction.

Level 3 data includes detailed information that goes beyond a standard credit card transaction — purchase order number, item description, quantity, unit of measure, unit cost, tax amount, freight amount, and ship-to and ship-from postal codes. This data must be captured at the time of the transaction and submitted electronically through a Level 3 capable gateway. Standard credit card terminals typically cannot do this.

The Silent Problem

A merchant account that is not submitting Level 3 data does not generate an error or a declined transaction. The payment processes, the money arrives, and everything appears to have worked correctly. The only difference is that the transaction cleared at the standard rate rather than the GSA large ticket rate — and the contractor has no way of knowing unless the processing statement is reviewed at the interchange level.

Other common reasons eligible transactions fail to qualify for the GSA large ticket interchange rate include incorrect merchant category codes, authorization amounts that do not match the settled amount, and transactions settling outside the required timeframe. Each of these causes a silent downgrade to a higher interchange category with no obvious indication on the statement other than the interchange code itself.

GSA Large Ticket Interchange and SEWP Contract Holders

SEWP contract holders — vendors on NASA’s Solutions for Enterprise-Wide Procurement vehicle — are among the government contractors most likely to benefit from the GSA large ticket interchange program. SEWP orders frequently involve IT equipment, software licensing, and technology services with individual transaction values well above the $5,557.14 threshold.

For a SEWP contract holder processing a $25,000 IT equipment order paid by government purchase card, the difference between the standard P-card rate and the GSA large ticket interchange rate is approximately $277 on a single transaction. Across a year of SEWP orders, that difference adds up to a meaningful reduction in processing costs — without changing processors, renegotiating rates, or passing any cost to the purchasing agency.

How Revolution Payments Configures GSA Large Ticket Interchange

Getting correctly configured for the GSA large ticket interchange program involves more than simply enrolling in a program. The merchant account must be set up with a Level 3 capable gateway, the required data fields must be mapped and transmitting correctly on every eligible transaction, and the account should be monitored to confirm that large government purchase card transactions are actually clearing at the GSA large ticket rate rather than defaulting to a standard interchange category.

Revolution Payments has specialized in government contractor payment processing for over 25 years — including Level 3 configuration and GSA large ticket interchange enrollment for GSA Schedule vendors, SEWP contract holders, and DoD suppliers. A no-cost statement review will confirm whether current large government purchase card transactions are qualifying at the GSA large ticket interchange rate or whether there is a configuration issue causing eligible transactions to downgrade.

For contractors currently processing and unsure whether their large purchase card transactions are qualifying correctly — the review will show exactly what interchange rate each transaction cleared at and whether the GSA large ticket interchange program is actually working as intended.

Are Large Government Transactions Qualifying Correctly?

A no-cost statement review will confirm whether eligible government purchase card transactions are clearing at the GSA large ticket interchange rate — or whether a configuration issue is causing unnecessary costs on every large transaction.

Call 888-790-3450 — Free Review No obligation · No long-term agreements · Revolution Payments · 25+ Years Government Payment Experience

Surcharging Government Purchase Cards — What Government Contractors Need to Know

sjadmin1 — Fri, 28 Aug 2026 19:28:42 +0000

Some government contractors are permitted to do surcharging on government purchase card transactions. Whether doing so makes sense is a different question — and for contractors who choose not to surcharge, there is a path to significantly lower interchange costs that most processors never mention.

The question of whether government contractors can surcharge government purchase cards is coming up more frequently. In fact, Revolution Payments has recently spoken with multiple contractors whose government contracts permit a surcharge of up to three percent on purchase card transactions. Over the past 25 years working specifically with government contractors, the payment side of contract performance is still one of the least discussed — and most costly — areas that new and established contractors overlook.

Can Government Contractors Surcharge Government Purchase Cards?

A government contractor surcharge program allows a vendor to add a fee to the transaction when a government purchasing agent pays by purchase card. This fee is intended to offset the merchant’s cost of accepting the credit card — passing some or all of that cost back to the agency making the purchase.

Whether a government contractor can surcharge depends on the specific contract terms, the agency, and applicable regulations. Some contractors working with certain agencies are permitted to charge up to three percent. Others are not. Before implementing any surcharge on government purchase card transactions, the contract terms should be reviewed carefully and confirmed with the contracting officer.

Revolution Payments works with contractors in specific agencies where the purchasing office has confirmed they will accept a surcharge of up to three percent. In those situations, a properly implemented surcharge program can offset the majority of the processing fees a contractor would otherwise absorb. Understanding whether that applies to a specific contract is the starting point of the conversation.

GSA SmartPay guidance notes that A/OPCs should ensure card holders are aware of the possibility of surcharges when making purchases using GSA SmartPay charge cards. If a merchant is imposing a surcharge, the card holder may choose to consider another merchant that offers the same or similar item without the surcharge. This is an important competitive consideration for any government contractor evaluating a surcharge program.

Surcharging Government Purchase Cards — Why Competition Matters

Even when a government contractor surcharge program is permitted under contract terms, the decision to implement one involves more than just whether it is allowed. The competitive implications are real and worth understanding before proceeding.

Government purchasing agents who encounter a surcharge have the option to seek out another vendor offering the same or similar products or services without one. In a competitive procurement environment — where multiple vendors offer comparable capabilities — a surcharge can be a factor that moves business to a competitor. This is particularly relevant for contractors whose products or services are not highly differentiated or where the agency has multiple qualified vendors to choose from.

The Competitive Risk

A government contractor surcharge program that recovers three percent in processing costs may cost significantly more in lost contract value if purchasing agents consistently choose vendors who do not surcharge. The decision should factor in the competitive landscape, the nature of the contract, and whether the agency has readily available alternatives.

For contractors in specialized fields — where the agency has few qualified vendors — the competitive risk of surcharging may be lower. For contractors in more commoditized categories, the risk of losing business may outweigh the benefit of recovering processing costs through a surcharge.

“The decision to surcharge is not just about whether it is permitted — it is about whether the business can absorb the competitive risk of charging an agency more than a competitor would.”

When Surcharging Government Purchase Cards Isn’t the Right Fit

For government contractors who determine that surcharging is not the right fit — either because it is not permitted under their contract or because the competitive risk is too high — the more effective path to reducing the cost of accepting government purchase cards is through interchange optimization.

Visa and Mastercard created specific interchange programs for government purchase card transactions that significantly reduce the cost when the right transaction data is submitted. According to the GSA Federal Acquisition Service, by providing Level 3 data, a supplier may reduce their credit card processing fees — often by 30 to 40 percent. This cost reduction does not require surcharging the agency, does not create a competitive disadvantage, and is available on eligible transactions when the merchant account and transaction data are configured correctly.

What 30 to 40 Percent Actually Means

The GSA has published examples showing the real dollar difference. A $5,000 Visa transaction without Level 3 data costs approximately $139 (2.78%) in interchange. The same transaction with Level 3 data costs approximately $99 (1.98%). For contractors processing significant government purchase card volume, that difference compounds quickly across every eligible transaction.

Surcharging Government Purchase Cards vs. Level 3 — Understanding Your Options

For contractors permitted to surcharge up to three percent, the surcharge effectively passes the full processing cost to the agency. For contractors who optimize through Level 3 processing instead, the interchange cost itself is reduced by 30 to 40 percent on eligible transactions — meaning the contractor pays significantly less without passing any cost to the agency.

For contractors who choose not to surcharge government purchase cards, Level 3 interchange optimization reduces the underlying interchange cost without passing any additional charge to the government customer. That distinction matters — the contractor pays less, and the agency pays nothing extra.

GSA Large Ticket Interchange — A Program Most Contractors Don’t Know About

Beyond standard Level 3 interchange optimization, there is a separate Visa interchange program specifically for GSA large ticket transactions that offers even lower rates for eligible government purchase card transactions above a certain dollar threshold.

As of August 2026, the Visa GSA Large Ticket interchange rate is 1.20% + $39.00 per transaction for eligible transactions of $5,557.14 and above. These rates are subject to change — contractors should verify current thresholds and rates with their processor.

Program	Threshold	Rate (as of August 2026)	Data Required
Standard — No Level 3	Any amount	2.70% + $0.10	Basic transaction data only
Level 3 — Government Purchase Card	Any amount	1.90% + $0.10	Level 3 line-item data required
Visa GSA Large Ticket	$5,557.14 and above	1.20% + $39.00	Level 3 line-item data required

For a government contractor regularly processing transactions above the GSA large ticket threshold, the difference between paying standard interchange and qualifying for the GSA large ticket rate is significant. On a $10,000 transaction, standard interchange at 2.70% costs $270. The GSA large ticket rate at 1.20% + $39.00 costs $159 — a difference of $111 on a single transaction. At meaningful volume, that difference adds up to thousands of dollars per year.

Important

Qualifying for the Visa GSA Large Ticket interchange rate requires Level 3 line-item data to be submitted correctly with each eligible transaction. Without Level 3 data, the transaction will not qualify for the large ticket rate regardless of the transaction amount. The merchant account must also be properly configured for this program — simply accepting government purchase cards is not sufficient.

What Government Contractors Should Evaluate Before Deciding

Review contract terms first — confirm whether a surcharge is permitted under the specific contract and agency before implementing any government contractor surcharge program
Assess the competitive landscape — how many qualified vendors does the agency have access to, and how likely are purchasing agents to seek out non-surcharging alternatives
Understand the Level 3 opportunity — before surcharging, determine whether the merchant account is configured to submit Level 3 data correctly and whether interchange optimization alone would adequately reduce costs
Check transaction sizes against the GSA large ticket threshold — if transactions regularly exceed $5,557.14, the GSA large ticket interchange program may reduce costs significantly without any surcharge
Verify the current setup — many government contractors assume their account is configured correctly for Level 3 and large ticket programs. A statement review will confirm whether transactions are actually qualifying at the expected interchange levels

Revolution Payments and Government Contractor Payment Processing

Revolution Payments has specialized in government contractor payment processing for over 25 years. Government purchase cards — including GSA SmartPay cards — represent a meaningful portion of federal procurement spending, and contractors who are not set up correctly are paying more than necessary on every eligible transaction.

Whether the question is whether a government contractor surcharge program makes sense for a specific contract, or whether the current merchant account is configured to qualify for Level 3 and GSA large ticket interchange rates, a no-cost statement review will show exactly where transactions are currently qualifying and what options are available.

Accepting Government Purchase Cards?

Find out whether current transactions are qualifying at the right interchange level — and whether a government contractor surcharge program, Level 3 optimization, or GSA large ticket rates make the most sense for the contract and volume.

Call 888-790-3450 — Free ReviewNo obligation · No long-term agreements · Revolution Payments · 25+ Years Government Payment Experience

What Most Businesses Miss About Level 3 Credit Card Processing

sjadmin1 — Tue, 02 Dec 2025 21:06:18 +0000

Level 3 credit card processing gives businesses a more sophisticated way to accept payments, especially in the B2B space. Instead of just sending a total amount, Level 3 adds detailed line-item data to each transaction.

When that enhanced data is present and passes correctly, interchange fees can be significantly lower, which makes a big difference for companies handling a high volume of commercial or government card payments.

Level 3 was introduced more than 20 years ago when Visa and Mastercard created special interchange programs to encourage government vendors to enter more detailed information when accepting purchase cards (P-Cards).

If the extra fields were included—things like purchase order number, invoice number, product description, freight, and duty—the transaction could qualify for interchange rates that were often 30–40% lower than a standard card sale.

Over time, this evolved into what we now refer to as Level 3 “transactional data”: essentially an electronic invoice with full line-item detail. It shows what was purchased, who made the purchase, and the context around the transaction. That data is attached to the payment record and sent to the issuing bank along with the authorization and settlement information.

What Level 3 Line-Item Data Typically Includes

Level 3 transactions generally include:

Product description, quantity, unit of measure, unit price, and any discounts
Sales tax details, where applicable
Merchant location / establishment information
Cardholder information and purchase order or reference numbers
Shipping, freight, and duty amounts

Originally, this level of transparency was designed to support taxpayer oversight on government spending. Today, the same structure benefits any business accepting commercial, corporate, purchasing, fleet, or government cards.

Level 1 vs. Level 2 vs. Level 3 – What Actually Changes

At a basic level (Level 1), a transaction carries only core information:

Merchant name
Transaction amount
Transaction date

Level 2 adds a bit more structure, such as:

Customer code
Tax amount
Invoice or order number
Level 3 goes much further and adds full line-item detail:
Individual product or service lines
Quantities, units, extended amounts
Freight, duty, shipping, and other charges

As you move from Level 1 to Level 3, you’re essentially moving from a simple receipt to a complete invoice embedded inside the transaction.

Which Cards Can Qualify for Level 3

Level 3 processing applies to specific card types, including:

Purchasing cards
Corporate and business cards
Fleet cards
Government spending accounts
GSA SmartPay cards

Card brands continue to adjust how these programs are structured. For example, Visa is phasing out some Level 2 options for certain business cards and pushing those transactions to qualify at Level 3 when the required data is present.

How Businesses Qualify for Level 3 Rates

To qualify for Level 3 interchange, a business needs to send the enhanced data the card brands require, through a gateway or virtual terminal that actually supports those fields.

Traditional countertop terminals aren’t designed for this. They don’t have the fields, the memory, or the workflow to support full Level 3 detail. Without the right technology (or without configuring it correctly), you simply will not qualify for Level 3 rates—even if you think you’re “set up” for it.

In practice, there are two ways companies send Level 3 data:

Manual entry of the required fields (time-consuming and error-prone)

Automation through a gateway or integration that maps and passes Level 3 fields on every eligible transaction

Many merchants are using outdated systems, incomplete setups, or gateways that were never properly configured for B2B. Industry research and field experience suggest that a large share of businesses are not fully configured to process commercial or purchasing cards at the Level 3 standard, even though they accept those cards every day.

This small technical gap increases interchange costs and quietly erodes margins. As more payables shift to corporate, fleet, and government cards, it becomes even more important to make sure you’re processing those transactions at the most efficient level.

Why Most Businesses Overpay

Even merchants who process commercial cards every single day are often overpaying because of a few recurring issues:

Flat-rate pricing instead of cost-plus. Flat-rate models tend to hide interchange improvements. A cost-plus structure makes the true cost visible and ensures Level 3 savings actually reach the merchant. Missing or incomplete Level 3 data. Skipping required fields can cause a transaction to qualify at a higher-cost category—often 50–150 basis points more on the same sale.

Improper account or gateway configuration. Many sales reps and even some providers don’t fully understand how to configure or map Level 3 fields. A misconfigured setup can cost thousands per month without anyone realizing it.

Key Benefits of Getting Level 3 Right

When Level 3 is implemented and configured correctly, B2B merchants can see:

Interchange savings up to roughly 30–40% on eligible transactions
Better cash flow and faster payments
Detailed, auditable line-item visibility
Reduced risk of disputes and chargebacks
Easier reporting and compliance for internal and external audits

For many B2B and government vendors, simply getting the Level 3 structure right is one of the easiest ways to reduce card acceptance costs and improve margins—without changing how customers pay.

Questions about level 3 credit card processing or if you would like a no obligation review give us a call at 888 790 3450 or email info@ revolution-payments.com

Payment Processing Fees for Government Contractors

sjadmin1 — Fri, 04 Apr 2025 19:22:56 +0000

In today’s competitive government contracting landscape, keeping overhead low is more important than ever. Yet, one hidden expense continues to chip away at margins — payment processing fees for government contractors.

Many contractors unknowingly pay far more than necessary, especially on Business-to-Business (B2B) and Business-to-Government (B2G) transactions, simply because their payment systems aren’t configured to qualify for lower interchange rates.

Why So Many Contractors Pay More Than They Should

If you accept corporate, fleet, or government purchasing cards, you might assume your processor is automatically giving you the best rates. The reality? Unless your system is passing Level 2 and Level 3 data, you’re likely paying standard interchange — and leaving significant savings on the table. Level 3 processing can lower the payment processing fees for government contractors by up to 40%.

Visa and Mastercard offer special reduced rates for these types of transactions, but only when enhanced data is submitted during the transaction.

Most payment processors either don’t support this or haven’t properly set up contractors to take advantage of it. As a result, many businesses end up spending 30% to 50% more than necessary on processing costs.

What Is Level 2 and Level 3 Credit Card Processing?

These are enhanced data levels used in commercial transactions.
When you provide extra details like tax amount, invoice number, and product line items at the time of the sale, card brands see the transaction as lower risk and reward you with lower interchange rates.

The more data you submit, the better your pricing:

Level 1: Standard consumer-level data
Level 2: Business data (tax, invoice, etc.)
Level 3: Detailed line-item information for government/commercial cards

How Contractors Can Reduce Processing Costs Without Extra Work

At Revolution Payments we’ve built tools that automatically handle Level 2 and Level 3 data submission behind the scenes — no manual input needed from your team.

We work exclusively with B2B and B2G contractors, helping you qualify for the lowest possible rates on every eligible transaction. The result? Substantial monthly savings with zero operational disruption.

The Cost of Not Being Set Up Properly

Data shows that 75% to 80% of government contractors are not configured to receive Level 3 pricing. That means most are paying far more than they should on every card transaction — without even realizing it.

If your company accepts GSA SmartPay or corporate purchasing cards, you could be missing out on savings of 1% to 1.5% per transaction.

The Fastest Way to Know If You’re Overpaying

We offer a free, no-obligation interchange analysis that benchmarks your current setup against the most favorable rates offered by Visa and Mastercard.

This audit reveals whether your business is leaving money on the table — and how much you could be saving. With the next round of interchange updates arriving this April and October, now is the perfect time to optimize.

Ready to Stop Overpaying?

If you’d like immediate insight into how much your business could save, you can:

Upload a recent statement: Click here to submit securely
Call us directly: 888-790-3450 if you have questions on payment processing fees for government contractors.
Revolution Payments is a SAM-registered, CAGE-coded vendor that specializes in helping government contractors reduce their interchange costs with Level 3 processing

QuickBooks level 3 credit card processing

sjadmin1 — Sun, 09 Feb 2025 20:43:09 +0000

Reduce Payment Processing Costs with QuickBooks Level 3 Credit Card Processing

If your business accepts corporate, government, purchasing, or commercial credit cards, you could be overpaying by as much as 1.5% per transaction. The key to unlocking lower interchange rates lies in QuickBooks Level 3 processing—a powerful solution that can slash your payment processing costs by up to 40% on standard transactions and as much as 75% on high-ticket sales.

How Level 3 Processing Lowers Costs in QuickBooks

Our QuickBooks-integrated Level 3 processing solution ensures every qualifying transaction is optimized for the lowest possible interchange rates—without any manual data entry.

With our seamless QuickBooks integration, you can:
Automate Level 3 data capture to secure lower interchange fees
Accept credit card and ACH payments directly within QuickBooks
Sync transactions in real-time with QuickBooks (A/R & G/L)
Eliminate unnecessary surcharges and benefit from cost-plus pricing
Enhance cash flow by processing payments at multiple QuickBooks entry points

Key Features of Our Level 3 QuickBooks Integration

Compatible with QuickBooks Desktop & Online (Pro, Premier, Enterprise, Accountant)
Instantly posts payments to QuickBooks A/R & G/L
Marks invoices as PAID upon transaction approval
Securely stores customer card details (PCI-compliant)
Sends email invoices with embedded payment links, automatically updating QuickBooks
Supports ACH payments for additional flexibility

Why Interchange Fees Matter More Than Processor Rates

Many businesses mistakenly focus only on their processor’s markup, assuming that’s where the biggest savings lie. However, interchange fees—set by Visa and Mastercard—make up the majority of processing costs. The only way to reduce them is by properly passing Level 3 data, which can cut costs by 1.5% per transaction—savings that no processor can offer without advanced Level 3 technology.

With our QuickBooks Level 3 integration, every eligible transaction automatically qualifies for the lowest interchange rates, ensuring that no savings are left on the table.

Why Work With Us?

Guaranteed Level 3 Savings – Every qualifying transaction is optimized for the lowest rate
Expert-Level Support – Work with specialists who understand interchange and cost reduction strategies
Complimentary Savings Analysis – Send us a recent processing statement, and we’ll show you exactly how much you can save

Questions about QuickBooks Level 3 Credit Card Processing, Get a Free Savings Review

Call us at 888-790-3450 or email info@revolution-payments.com for a no-obligation savings audit.
Prefer fax? Send your last month’s statement to 877-901-3181 for a complimentary review.

Let Revolution Payments help you reduce processing costs, improve cash flow, and eliminate hidden fees—without changing how you do business in QuickBooks.

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

GSA Vendors & Contractors Increase your margins by 1% with level 3 credit card processing

sjadmin1 — Mon, 19 Aug 2019 20:28:46 +0000

GSA Vendors & Contractors Increase your margins by 1% with level 3 credit card processing!

What is Level 3 processing?
Level 3 processing is a more sophisticated way of accepting commercial, business, purchase & government cards that allows any business selling to other companies or government to lower transaction cost by 30%-40% from (interchange rebates) that are non-related to the rate processors charge.

Level 3 Data is additional information about a transaction which is commonly found on an invoice, such as product/service descriptions, quantities and other details.

Visa® and MasterCard® apply higher Interchange rates for business, corporate, purchasing and GSA transactions if Level 3 Data is not included with the transaction.

Revolution Payments
We’ve made taking advantage of the level 3 interchange rebates easy. We automate this process by automatically attaching level 3 detail to every transaction, so you don’t have to lift a finger to qualify.

Have questions whether your company is processing as efficiently as possible or wondering if you can benefit from level 3 processing?

Free Level 3 Processing Rate Quote. Stop leaving money on the table.

Fax your last month’s statement to 877 351 0195 or call

844 795 0433, Expect to see a 30%-40% reduction in processing fees.

Remember, the rebates for level 3 are non-related to the rate processors charge and only transactions including level 3 are eligible. GSA Vendors & Contractors Increase your margins by 1% with level 3 credit card processing!

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

sjadmin1 — Tue, 03 Jul 2018 20:37:48 +0000

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.

https://www.revolution-payments.com/level-3processing/

Or call us at 888 790 3450

Level 3 credit card processing explained

sjadmin1 — Mon, 30 Apr 2018 21:24:07 +0000

This short video explains the benefits of Level 3 processing for B2B and B2G businesses and how providing enhanced transaction data can significantly reduce interchange costs on eligible commercial, purchasing and government cards.

Important 2026 Update: This video was originally created when Visa and Mastercard both used the traditional Level 1, Level 2 and Level 3 interchange structure for commercial cards. Since then, Visa has made significant changes to its commercial card programs. Visa did away with Level 2 for business cards and replaced its traditional Level 3 qualification structure with its newer Commercial Enhanced Data Program (CEDP) and Product 3 requirements. Mastercard continues to support Level 2 and Level 3 processing.

Although the programs have changed, businesses still commonly use the term “Level 3 credit card processing” to describe the process of providing enhanced transaction data to qualify eligible B2B and B2G transactions for lower interchange rates.

What Is Level 3 Credit Card Processing?

Visa and Mastercard use interchange rates to determine a significant portion of what businesses pay to accept credit cards. These interchange fees are separate from the markup charged by your credit card processor.

For B2B and B2G companies accepting commercial, corporate, purchasing and government cards, the information transmitted with a transaction can have a significant impact on how that transaction qualifies and the interchange cost associated with it.

Historically, commercial card transactions were commonly described as qualifying at three different data levels:

Level 1 – Basic transaction information typically associated with a standard credit card transaction.
Level 2 – Additional transaction information such as sales tax and customer or invoice information.
Level 3 – Detailed line-item information typically found on an invoice, including product descriptions, quantities, unit costs, purchase order information and other transaction details.

The important thing to understand is that these interchange qualifications are separate from the rate your processor charges.

That’s why two businesses can have essentially the same processor pricing and still pay dramatically different overall credit card processing costs.

Visa Level 3 Processing Has Changed

Visa has significantly changed the way eligible commercial card transactions qualify.

Visa did away with Level 2 for business cards, and its traditional Level 3 commercial card qualification has been replaced by newer enhanced-data requirements, including Visa’s Commercial Enhanced Data Program (CEDP) and Product 3 qualification.

Instead of simply transmitting the old Level 3 data fields, eligible transactions must now meet Visa’s current data and verification requirements to receive the available enhanced commercial card interchange rates.

This makes the technology being used to process B2B and B2G transactions even more important.

Mastercard Still Supports Level 2 and Level 3

Unlike Visa, Mastercard continues to maintain Level 2 and Level 3 commercial card interchange programs.

Providing the appropriate enhanced transaction data can therefore still allow eligible Mastercard commercial, corporate and purchasing card transactions to qualify for lower Level 2 or Level 3 interchange rates.

The potential savings depend on the card type, transaction amount, acceptance method and interchange category for which the transaction qualifies.

Why Level 3 Processing Still Matters

Whether the transaction is being optimized through Mastercard Level 3 or Visa’s newer commercial enhanced-data programs, the basic principle remains the same:

Better transaction data can mean lower interchange costs.

For businesses processing a significant amount of purchasing, government or commercial cards, properly optimizing these transactions can produce substantial savings without lowering the processor’s markup at all.

This is especially important for:

B2B companies
Government contractors
Wholesalers and distributors
Manufacturers
Automotive and heavy-duty suppliers
Companies accepting government purchase cards
Businesses with large average transaction amounts

Do You Need Special Software for Level 3 Processing?

In most cases, yes.

Level 3 and enhanced commercial card processing require a payment gateway, software or integrated payment solution capable of collecting and transmitting the additional transaction data required by the card brands.

The bigger challenge is making sure the correct information is being transmitted automatically and in the format required for the transaction to qualify properly.

At Revolution Payments, our level 3 credit card processing technology is designed to automate this process whenever possible so businesses don’t have to manually enter extensive transaction data every time they accept an eligible commercial or government card.

Are Your Commercial Card Transactions Qualifying Correctly?

If your company accepts a significant amount of B2B, commercial, purchasing or government credit cards, the most important question isn’t simply what rate your processor is charging.

It’s how your transactions are actually qualifying at the interchange level.

We’ve seen businesses paying significantly more than necessary even though they had competitive processing rates, simply because eligible transactions weren’t qualifying at the best available interchange categories.

If you’d like to find out how your transactions are currently qualifying, give us a call at 888-790-3450. We’d be happy to perform a no-obligation interchange audit and show you exactly what we’re seeing.

GSA Point of Sale & Transactional Data Technical Information

sjadmin1 — Tue, 20 Mar 2018 01:26:14 +0000

The GSA site has some great information regarding Level 3 processing and benefits/Additional revenue available to

Government Vendors and Contractors.

The following information is provided for informational purposes only to provide technical background
information on the Point of Sale & Transactional Data initiative to vendors.
Transactional Data

• Level-3 “transactional” Data: is an “electronic invoice” with line-item details. It defines “what” is
being purchased, “’how” the sales takes place, “who” is involved in the transaction, and “when” it takes
place, it combines that information with the basic payment data and delivers it electronically to the
issuer.

• Level-3 line item detail provides data elements such as a description of the product, quantity, unitof-
measure, price, price discount applied and sales tax information when applicable. It adds
transparency and accountability to the taxpayer’s money spending process.
• These data elements are combined with basic transaction information such as the merchant
establishment information and cardholder information.

Value Proposition for Vendors:
• Faster funding: Improves profitability by reducing payment time from 30-45 days on an invoice to 2-3
days for electronic payment. Faster payments reduce your cost of floating funds until payments are
received

• Savings – MasterCard and Visa have created special rates to support Purchase Card programs
reducing the merchant transaction costs (Interchange) if Level-3 line item detail information is
transmitted with the card payment file. By providing Level-3 data, a supplier may reduce their credit
card processing fees – often by 30% to 40%.

• NOTE: The examples below show the “Wholesale” Cost from Visa and MasterCard
(Interchange) to the Acquiring Banks. The true cost to the Vendors/Merchants will be higher because
they will include additional charges from the Bank and/or Independent Agents servicing their
merchant processing accounts. Most independent sales agents work on commissions or “residual
income”.

• SUGGESTION: Vendors should ask their merchant processor for a pricing model which shows
the true interchange cost, plus a constant profit margin (sometimes called “Interchange Plus”, or
“Pass-Through Plus” by the Processors).

• Example #1, Visa Interchange Exercise:
Cost for a $5000 Visa transaction without Level 3 Data: $139 or 2.78%
Cost for a $5000 Visa transaction with Level 3 Data: $99 or 1.98%
Cost for a $3000 Visa transaction without Level 3 Data: $99 or 3.30%
Cost for a $3000 Visa transaction with Level 3 Data: $75 or 2.50%

• Example #2, MasterCard Interchange Exercise:
Cost for a $5000 MasterCard transaction without Level 3 Data: $147.50, or 2.95%
Cost for a $5000 MasterCard transaction with Level 3 Data: $102.50, or 2.05%
Cost for a $3000 MasterCard transaction without Level 3 Data: $88.60, or 2.95%
Cost for a $3000 MasterCard transaction with Level 3 Data: 77.58%, or 2.58%

You can see in the examples above and GSA examples, including level 3 payment detail AKA line item detail can lower the cost of accepting

credit cards from the government and businesses by 30%-40%. This happens before credit card processors add their markup to your

transactions.

For more information give us a call at 888 790 3450 or email info@revolution-payments.com