Card processor Revolution Payments unveils a programme designed to help government vendors lower the cost of accepting government purchase cards.
And according to Revolution Payments the initiative can add 1% to vendors’ bottom line.
Processing government purchase cards requires more sophisticated technology to capture what Visa and Mastercard call Level 3 line-item detail. Specifically, Level 3 data allows the government card to meet Mastercard and Visa’s interchange requirements for level 3 interchange rates.
To encourage vendor participation and support of purchase card programmes, Visa and MasterCard have created special interchange rates for transactions. This includes level 3 processing detail.
Revolution Payments Level 3: reduced interchange rates
And according to Revolution Payments the interchange rates may reduce a supplier’s fees by up to 30%-40%.
Revolution Payments has developed technology to help contractors meet these requirements. Consequently, vendors qualify for MasterCard and Visa’s lower rates.
These reduced interchange rates are passed on to the contractor. In turn, this results in reduced processing fees.
The card processor says that three out of five businesses are not set up to accept commercial cards properly. This means that they are not set up to include level 3 processing information on purchase card transactions.
Revolution Payments says that its automated level 3 payment solution ensures each transaction clears at the lowest possible interchange rate.
In particular, the Revolution Payments level 3 payment solution automatically populates and attaches level 3 detail. This avoids someone requiring manually to enter 7-13 additional data fields typically required to receive level 3 interchange rates.
Moreover, Revolution Payments level 3 detail automatically attaches to larger transactions. And so large ticket transactions clear at the large ticket credit card processing interchange rates. This can save a business up to 2% when processing large transactions.