With the many challenges facing contractors today, card processing fees for government contractors are often overlooked. Many contractors unknowingly overpay due to bank processors that are ill-equipped to handle Business-to-Business (B2B) and Business-to-Government (B2G) transactions. As a result, they miss out on significant interchange savings that could reduce costs by up to 50%.
Why Contractors Overpay in Processing Fees
Most contractors accept commercial and government purchasing cards, yet their transactions are processed at standard interchange rates rather than the reduced rates offered by Visa and Mastercard. Why? Because these savings are only available when Level-2 and Level-3 data is properly submitted.
Unfortunately, many in the contracting industry are unaware of these requirements, and their processors fail to configure their systems to take advantage of these incentives. Without the right setup, businesses can end up paying up to 50% more in credit card processing fees for contractors than they should.
What is Level-2 and Level-3 Processing?
Visa and Mastercard reward businesses that collect and submit detailed transaction data at the time of sale. This data, known as Level-2 and Level-3 processing, includes additional fields such as tax amounts, invoice numbers, and product details.
When this information is provided, Visa and Mastercard classify the transaction as lower risk, allowing it to qualify for significantly reduced interchange rates.
How Contractors Can Unlock Lower Interchange Rates
At Revolution Payments, we specialize in educating decision-makers and employees in the contracting industry on the benefits of proper Level-2 and Level-3 processing. Our proprietary technology automates this process, ensuring that every eligible transaction qualifies for the lowest possible interchange rates—without requiring any extra work from your team.
Save on the credit card processing fees for government contractors
For contractors processing large volumes of government and corporate payments, the difference between standard and optimized rates can mean thousands of dollars in monthly savings. Some of our clients have cut their credit card processing fees for contractors by as much as 50%, simply by allowing our system to handle their transactions correctly.
The Shocking Truth: Most Contractors Are Not Set Up for Savings
It’s worth repeating—75% to 80% of contractors processing B2B and B2G transactions are not set up to receive the best rates.
If your business accepts government SmartPay cards or corporate purchasing cards, there’s a strong chance you’re overpaying significantly without realizing it.
Next Steps: Ensure You’re Not Leaving Money on the Table
The best way to determine if you’re optimized for the lowest interchange rates is through a no-obligation interchange audit. We’ll benchmark your current setup against Visa and Mastercard’s best available rates and identify immediate opportunities for savings.
With April and October interchange adjustments on the horizon, now is the time to ensure your business is positioned for maximum cost efficiency.
Want to Learn More?
Stay tuned for our next article, where we’ll dive deeper into Business-to-Government (B2G) processing and how contractors can streamline payments within the GSA SmartPay program.
If you have questions about card processing fees for government contractors or immediate insights into how much you could be saving, contact us today for a free interchange audit or upload a recent statement here : https://revolution-payments.com/free-rate-quote-request/ or call 888 790 3450