Did you know, more than 15 years ago Visa and MasterCard created special interchange rates for vendors who accept government credit cards, specifically for Government Purchase Cards Level-3 Processing?
Unfortunately 3 out of 5 vendors are still not set up to take advantage of this
These special interchange rates lower your transaction cost by up to 40%, if level III line item detail is included with your transaction (also applies to non-government commercial cards)
As you probably know, Interchange fees are Non Negotiable (the same for all processors) and paid or collected by the card-issuing banks that provide Visa, MasterCard, Not Your Processor!
This is another reason banks issue credit cards, they receive the bulk of the fees a business pays to accept cards.
Each time a transaction is processed, it is assigned an interchange category that determines the interchange rate. Higher interchange rates are applied to transactions that Do Not not include Level 3 detail.
You can see these by googling Visa interchange rates, page 13
• Commercial Level III 1.90% + $0.10
• Commercial Card Not Present 2.70% + $0.10
You’re either paying an interchange charge of 1.90% or 2.7% before your processor adds their fee.
Keep in mind for your business to benefit from Level II and III interchange optimization, your business needs to process transactions through a third-party gateway that supports Level II and Level III processing.
It is important to note that there are platform-specific requirements to qualify for level 3 interchange rates.
• The card accepted must be a commercial, purchase, fleet or business card (only MasterCard business cards are eligible for level 3 interchange rates.
• Level III Line item detail must be passed on every transaction
• Merchant must process transactions through a gateway that supports level 3 processing.
Revolution Payments helps businesses meet the requirements for processing and capturing level III line item detail on B2B & B2G credit card transactions.
Revolution Payments offers is a proprietary payment solution, and here’s how it works: For all credit card transactions … whether processed online or entered manually on your PC or mobile … our system automatically attaches details to every transaction that update all your credit card orders to Level 3 interchange rates.
This increases your profit margins by a minimum of 1% on your existing sales volumes!
Interested in finding out the impact this will have on your business?
Receive your NO Obligation Savings Analysis Today!
Upload a recent statement below.
Questions? Give us a call at 844-795-0433
PS: Regardless of the rate your processor is charging you, when you accept a credit card from the government or another business without level 3 detail, you lose roughly 1% of revenue that has NOTHING to do with the rate your processor is charging you! Government Purchase Cards Level-3 Processing can significantly increase your profit margins, without having to increase your sales volume.