The use of corporate purchasing cards (p cards) and government issued purchasing cards (GSA) are increasing at a rate of 15% per year and approaching $200 billion in credit card processing transactions annually. Nearly double the 2005 transaction volume, it’s apparent that large companies and government agencies are straying from the aging and inefficient purchase order process, and taking advantage of the benefits included in the corporate and government purchasing card programs.
Although credit cards are a convenient and inexpensive method of payment by corporations and government agencies, they adversely affect merchants that accept them. Corporate and government purchasing cards (GSA) traditionally carry higher interchange rates and fees, costing merchants as high as 4-5 percent of a transaction.
At The Transaction Group (TTG) we are able to set up merchants with a Level 3 merchant account. A level 3 credit card processing account is different than a standard merchant account as it utilizes a tiered interchange pricing structure rather than simply tacking on a high non-qualified rate to the qualified rate.
Implementing a Level 3 purchasing card solution will allow your business to accept purchasing cards as payment at significantly lower rates than a standard merchant account, ultimately saving your business money.
If your business receives payment from business purchasing cards (p cards) or government purchasing cards (GSA) and you are currently not set up with a Level 3 credit card processing account, switch & start saving now!
For more information or to get started call us today at 888-383-8056.