Revolution Payments, which gears its payment services for government entities and B2G transactions, is targeting the government purchase card for its latest upgrades. The company announced Tuesday (Dec. 22) that it has developed new technology to help reduce the cost for contractors and government suppliers to accept payment via government commercial cards and purchase cards.
According to the firm, its new service can reduce the cost of government suppliers and contractors accepting these payment tools by up to 40 percent. This is key, the company added, because many on the sales side of these transactions “lack the knowledge and are ill-equipped to properly manage the level of processing data required for government credit cards.”
Revolution Payments noted that more than three out of five government vendors may not be capable of accepting government p-cards correctly, which requires a greater level of payments data (known as Level 3 data) than consumer credit cards. Government and commercial cards also have tiered interchange fees, the company explained, and involve more controls and capabilities than traditional consumer card products.
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Revolution Payments explained that by equipping suppliers to accept government p-cards, it can reduce their costs by 30 to 40 percent.
“Aside from making sure they have the correct rate structure and [are] set up properly, Revolution’s advanced payment technology automatically sends Level 3 detail on a supplier’s behalf, without them lifting a finger, regardless of the processing method,” the company stated. “This dramatically increases a supplier’s profit margins, even when their pricing is fixed.”
The company added that the savings come from suppliers being able to capture interchange revenue instead of having it go back to the card issuer.