As much as ninety percent of all government small purchases are bought with a government-backed credit card. Whether it is the Federal Government’s Government Purchase Card (GPC) or a GSA card, government entities require a more detailed level of transaction information that is generated by many vendors.
There are three levels of credit card processing, with each providing a higher level of information about the purchase. Level I processing is used by merchants accepting personal credit cards, while Level II is used by merchants processing corporate credit cards. However, because of this detailed requirement, governments encourage Level III processing. As the levels increase, there is also a corresponding decrease in transaction costs, making a Level III transaction a lower-cost action versus Level I transaction.
