Revolution Payments Reveals a New Service to Help Government Vendors Reduce the High Interchange Fees Associated With Accepting Government Purchase Cards

This program lowers a vendor's cost of accepting government purchase cards by up to 43%

Revolution Payments reveals a new service to help government vendors reduce the high interchange fees associated with accepting government purchase cards.

This solution optimizes every credit card transaction to the lowest possible interchange rate by automatically reclassifying the transactions to level 3 interchange rates. This lowers a vendor's cost of accepting these cards by up to 43%.

Transactions above $5,984.62 automatically qualify for High Ticket interchange rates, if level 3 detail is provided with the transactions. This lowers the cost of these cards to 1.2%.

Government vendors can enter level 3 detail on their own, however, many vendors that accept purchase cards don’t properly pass along enhanced data to qualify for level 3 processing. Statistics show that at least three out of five vendors are not participating and others may be providing level 3 detail but are not set up in a way to receive 100% of the benefits.

Interchange accounts for the largest portion of a vendor’s credit card processing expenses (80% or more) and it’s paid to card-issuing banks. Processors and the card brands (Visa, MasterCard, and Discover) don’t see any revenue from interchange. This is why level 3 processing is so important for vendors.

Using Visa as an example, if a vendor accepts a purchase card without level 3 detail, it will pay 80 basis points more in interchange before their processor adds its processing fee. With transactions above $5,984.62, they end up paying 1.5% more in interchange before their processor adds its fee.

This optimization service allows a vendor to recoup a large chunk of interchange revenue they cannot receive from a processor lowering its rate.

Merchants interested in learning more about Revolution Payments should contact Sean Jones at

Source: Revolution Payments


Categories: Government

Tags: accepting government purchase cards, GSA level 3 processing, how to accept government purchase cards, level 3 processing, revolution payments