Merchant Card Processing

Improve the financial footprint for your company and increase your profits by accepting Level 1 Level 2 and Level 3 consumer, corporate and government credit cards.
What is Level 1 Level 2 and Level 3 merchant processing?

Level 1 transactions are business to consumer transactions (B2C). Stores, Restaurants, Hotels, etc. Level 2 transactions are business to business transactions (B2B) and Level 3 transactions are business to government transactions (B2G). ­Level 2 and Level 3 transactions focuses on providing payment solutions that fit the unique needs of merchants in business-to-business and business-to-government sales. Corporate cards are credit cards issued for corporate purchases.  Government purchase cards are credit cards issued to government employees. Level 2 and Level 3 Processing can allow merchants to lower interchange rates by as much as 30%. Business and government employees still use invoices to make purchases, but that means more paperwork, and a bigger time lag before you’re paid. By accepting a Level 2 or Level 3 cards, the money is usually in your account within 48 to 72 hours the same as a consumer merchant. The advantage to business and the government paying with purchase cards rather than through individual purchase orders is that it reduces paperwork and streamlines payment for purchases. It also makes it easier for businesses and vendors to do business with corporations and the government.

The Government Purchase Card (GPC) Program (General Services Administration SmartPay Program) provides charge cards to agencies and departments throughout the U.S. Government. There are currently over 350 participating agencies in the program, including the Department of Defense. Based on the most recent data (FY 2014) the government spent approximately $17.1 billion (not including travel and fleet) with 20 million transactions and 265,000 cards. The purpose of the GPC Program is to streamline the payment process for purchases, minimize paperwork, and generally simplify the administrative effort associated with procuring goods and services. Invoices from approved customers are usually funded within 72 hours, often faster.

The Government Purchase Card program is designed to meet the following objectives:

• Simplify the purchasing process

• Reduce paperwork and administrative costs associated with official Government purchases

• Streamline payment procedures and improve cash management practices

• Improve management controls, reporting and decision-making activities

Card Type Level One Level Two Level Three Large Ticket
Visa Consumer X      
Visa Business X X    
Visa Business Debit X      
Visa Corporate X X X X
Visa Purchasing   X X X
Visa GSA (government)   X X X
MasterCard Consumer X      
MasterCard Business X X X X
MasterCard Business Debit X X X X
MasterCard Corporate   X X X

For more information on how to accept Level 1, 2 and 3 credit cards, please feel free to contact us. We are here to help. Contact us through our contact page. Thanks