GSA has started to mandate level-3 on certain GSA schedules.
The Point of Sale Transactional Data (PoST) Pilot Program requires that 51 V, 67, and 58 I schedule holders with designated SIN #’s provide Level-3 transactional data for all orders placed with the GSA SmartPay Card.
Government buyers are being encouraged to work with vendors who have the ability to pass level 3 detail with the payment transaction.
Aside from looking more appealing to government buyers, Level 3 is probably the easiest way to cut your credit card fee expenses.
Visa and MasterCard have special rates when Level 3 is provided. To properly qualify for level 3 interchange several factors are required. Payment technology capable of passing level 3 line item detail, and the proper rate structure, otherwise transactions will pass through at Data Rate 1, Non-Qualified or have additional surcharges applied.
Credit card transactions can be broken into three different categories: Level 1, Level 2 and Level 3.
Each processing level involves transmitting additional transaction detail with the transaction.
Level 1 processing refers to consumer transactions transactions, and requires the least amount of data, including just the merchant name, transaction amount and date.
Level 2 processing involves Business-to-business transactions. This requires information, such as tax amount, customer code and merchant postal code. Level-2 data will provide additional savings on commercial, business and purchase transactions.
Level 3 processing is Business-to-Business and Business-to-Government requires the most detailed data, and is offered refereed to as line-item detail. Its taking information generally found on an invoice and sending this along to the credit card processor
Visa and MasterCard have different rates for B2B and B2G transactions when Level-3 Data is provided. Merchants who work with an experienced B2B payment consultant, have the proper technology and rate structure can see savings of 30%-40% on B2B and B2G transactions.
When level-3 data becomes a requirement for SmartPay contracts, merchants dont want to go scrambling and work with the first processor you come across. All to often I have seen merchants processing Level 3 data, but because their merchant service company set them up wrong, they are not getting the true savings available for level 3.
Dont wait until the last minute. When Level 3 Data is mandated a supplier of business technology that doesn’t process level-3 data won’t be able to sell to offices in the public sector and could lose out on a number of business opportunities.
If you have questions about Level-3 or would like a cost savings analysis showing the savings Level 3 will provide your organization call 888 790 3450 Fax your last statement to 1-877-901-3181
or email [email protected]
PS. Revolution Payment Systems can support Level-3 processing through quickbooks.