When it comes to accepting GSA SmartPay cards, it may be time to make some changes.
Implement 21st century payment processing technology is required to keep your business both competitive and compliant.
Accepting GSA SmartPay cards requires processing technology able to capture level II and level III payment data. Government & Commercial cards accepted without level 3 detail qualify at different codes and cost roughly 1% more, regardless of the rate your processor is charging you.
Level 3 data allows you to reduce the cost of accepting GSA SmartPay cards by as much as 40%.
What Is Level III Data?
Level III data is information you typically find on an invoice that is included with a credit card transaction. An easy way to explain level III data is to think of an invoice, information you’d generally find on an invoice that is included. The “what”, “how” and “who” of a sale.
Level 3 processing was created to prevent excess spending on government cards. The level III detail, entered at the sale, showed up the governments bank statement to help them reconcile charges. Level 3 processing has been around for more than 15 years, offers tremendous savings, yet 3 out of 5 vendors are not set up, many that are, are not set up to receive 100% of the lower interchange rates.
How Do You Take Advantage Of Level III Interchange Rates?
First, your processor has to set you up properly and you need a virtual terminal or software able to capture the level III data fields. Some of these fields are below. Some programs can auto populate this info, but you may be working with an agency that requires you to manually enter level 3 detail. Unfortunately many vendors are using equipment that is outdated equipment along with bad processing practices.
Visa Level III Requirements
Freight / Shipping Amount Unit of Cost
Discount Amount Unit of Measure
Duty Amount Discount Per Line Item and Line Item Total
Item Commodity Code Ship-To Zip Code Product Code Ship-From Zip Code
Item Descriptor Destination Country
Quantity VAT information (tax amount, rate, invoice #)
MasterCard Level III Requirements
Tax Amount Item Quantity
Customer Code (for Purchasing Cards) Unit of Measure
Tax ID Extended Item Amount Tax Indicator Description
Product Code Debit or Credit Indicator
With greater and greater utilization of Government Purchase Cards, it is now of even of greater importance to properly manage your account when Accepting GSA SmartPay Cards. This will ensure you receive Visa and MasterCard’s level III interchange rates for Accepting GSA SmartPay Cards, and that your business is processing as efficiently as possible.
If you accept a government P card without providing level III payment detail, you’re losing 1% of potential revenue that has NOTHING to do with the rate your processor is charging you.
Remember, interchange amounts to roughly 80% of your expense for accepting credit cards, commercial cards accepted without level 3 detail qualify at different codes, and cost 1% more before your processor adds their fee.