Revolution Payments Reveals a New Service to Help Government Vendors Reduce the High Interchange Fees Associated With Accepting Government Purchase Cards. This program can lower a vendor’s cost of accepting government purchase cards by up to 43%.
This solution will optimizes every credit card transaction to the lowest possible interchange rate. This is done by automatically reclassifying government purchase cards and commercial cards to level 3 interchange rates.
Process transactions above $5,984.62 ? Then you automatically qualify to receive High Ticket interchange rates, if level 3 detail is provided with the transactions. This lowers the interchange cost of this transaction to 1.2%. This reduces your Interchange Fees Associated With Accepting Government Purchase Cards by almost 1%.
Government vendors can enter level 3 detail on their own and qualify for level 3 interchange rates, however, many vendors that accept purchase cards don’t properly pass along enhanced data to qualify for these lower interchange rates. Even though this is nothing new and been around for over 15 years, statistics show that at least 3 out of 5 vendors are not participating and others may be providing level 3 detail but are not set up in a way to receive 100% of the benefits.
Why is level 3 processing for government vendors?
Interchange accounts for the largest portion of a vendor’s credit card processing expenses (80% or more) and it’s paid to card-issuing banks. Processors and the card brands (Visa, MasterCard, and Discover) don’t see any revenue from interchange whatsoever.
To show you how powerful level 3 processing is, I will use Visa as an example. If a vendor accepts a purchase card without level 3 detail, they will pay 80 basis points more in interchange before their processor adds their processing fee. For transactions above $5,984.62, a vendor will pay 1.5% more in interchange before their processor adds its fee.
This optimization service allows a vendor to recoup a large chunk of interchange revenue they cannot receive from a processor lowering its rate.
Questions about accepting government purchase cards or how the optimization service would increase your bottom line revenues, give us a call at 888 790 3450 or email [email protected] revolution-payments.com
Reduce your Interchange Fees Associated With Accepting Government Purchase Cards