Government contractors that accept government purchase cards face a rapidly changing payment landscape. Relying on outdated systems and processes not only leads to missed cost savings but also increases the risk of non-compliance with strict Visa and Mastercard regulations. To remain competitive, secure, and efficient, government contractors need 21st-century payment technology that streamlines transactions, ensures PCI DSS compliance, and optimizes interchange rates.
The Challenges Government Contractors Face in Credit Card Acceptance
Many government contractors unknowingly lose time, money, and compliance standing due to:
- Outdated payment systems that require excessive manual entry and slow down transactions.
- Risky storage practices that can violate Visa and Mastercard rules for safeguarding cardholder data.
- Higher-than-necessary processing fees caused by not meeting interchange optimization requirements.
A Smarter Approach: Advanced Virtual Terminal Processing for Government Contractors
Modern virtual terminal platforms are now available that can solve these issues in one step. By upgrading, government contractors can:
- Ensure PCI DSS compliance and safeguard sensitive card data.
- Automate data capture to reduce manual entry and eliminate avoidable errors.
- Qualify for lower interchange rates by submitting the enhanced transaction details that Visa and Mastercard reward with special incentive pricing.
This can translate to processing cost reductions of up to 40%, putting significant dollars back into your bottom line.
Why Level 3 Processing Is Essential for Government Contractors
Government purchase cards are eligible for interchange savings when transactions include Level 3 line-item detail — the same type of breakdown found on a detailed invoice.
With Level 3 capability, you can:
- Electronically send complete transaction data directly to the buyer’s accounting system.
- Strengthen accountability and transparency for government clients.
- Qualify for reduced interchange rates on every eligible transaction.
- Unlock even greater savings for large-ticket purchases by enrolling in the GSA Large Ticket Program.
- Lower the cost of accepting government purchase cards by up to 40%
Until recently, most government contractors couldn’t take advantage of these savings because the process was too complex. Today’s virtual terminal solutions make Level 3 processing simple, fast, and automated.
Additional Benefits of Modern Payment Technology for Contractors
Modern virtual terminal technology also offers:
- Recurring payment options
- Secure Vault card data storage
- Electronic check acceptance
- Integrated online invoicing and bill pay
- Seamless shopping cart and accounting system connections
- Robust real-time reporting tools
The Importance of PCI DSS Compliance for Government Contractors
The Payment Card Industry Data Security Standard (PCI DSS) exists to protect cardholder data and prevent fraud. Compliance is mandatory for any organization that processes, stores, or transmits card information.
Failure to comply can result in:
- Fines up to $500,000 per breach
- $50,000 per day for ongoing violations
- Liability for fraud losses and card reissuance costs
- Loss of processing privileges
A secure, PCI-compliant system ensures your business is protected — and avoids the costly risks of non-compliance.
The Bottom Line: Competitive Advantages for Contractors
For government contractors, upgrading to Level 3–enabled payment technology isn’t just an operational improvement — it’s a competitive advantage.
Key gains include:
- Compliance with all major card brand security requirements
- Processing cost reductions of 0.75% to 1% or more- Visa and MC created special interchangte rates for contractors who submit level 3 detail.
- Greater protection of sensitive cardholder data
- Reduced labor hours and streamlined reporting
Questions-Give us a call at 888 790 3450 or email info@ revolution-payments.com We have been helping Government Contractors process correctly for over 25 years!