Accepting Government Purchase Cards

If your business is accepting government purchase cards and  your processors or bank Has Not set you up to send level 3 line item detail with these transactions, you could be losing up to 40% on each transaction to fees.

You may also be losing business from the government which I will discuss on a future topic.

Purchase, corporate, fleet and business cards have tiered interchange rates to encourage suppliers to support the P card program by reducing the transaction cost if level 3 data is provided.  This can often lead to a savings of up to 40% as stated on the GSA site.


Most sales professionals only sell on rate without ever explaining this to a government contractor or supplier.  Many are only taught what they need to know in order to make a sale.  This is a shame.  Merchants are being conditioned by sales people to only focus on rate which is resulting in many giving up 40% to fees.


Purchase cards have tiered interchange rates. Interchange goes back to the card issuing bank, NOT processors and can amount to 80% of the fees merchants pay to accept credit cards……..Level 3 allows suppliers to reduce the cost of commercial transactions by receiving money that would have normally went to the card issuer.

Processors have no influence over interchange. So the ONLY way a government contractor or supplier can experience rates below 2% for commercial transactions is by having the proper rate structure, technology and working with an experienced Level 3 B2B and B2G payment processor.

Questions? Give us a call at 888 790 3450 or email [email protected]


PS.  Required to process Level 3 Detail or need to process Level 3 processing via Quickbooks or Mobile, Revolution can help.

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