Contents tagged with Commercial Cards

  • Differentiating yourself from the competition can help win government contracts

    May 20, 2013
    The ability to obtain government contracts is crucial for a number of businesses in virtually any industry. Companies that can rely on government money are likely to experience a greater number of advantages from their increased revenue stream. The trouble is, the market is tremendously competitive, so winning government contracts is easier said than done.

    An article in Onvia.com offers tips vendors can follow to help win government contracts. One of the key points of the article is that organizations have to differentiate themselves from their competition. Because those tasked with procuring products and services for their public sector offices often encounter a bevy or businesses constructed in a relatively similar fashion, vendors that take the extra step to establish themselves as a … more

  • How to entice government agencies to use their GSA charge cards

    May 10, 2013
    Recently, this blog talked about the fact that virtually all government purchases totaling an overall cost lower than $3,000 must be paid for with government charge cards. And while we addressed how vendors that are concerned with this requirement can alleviate any burdens it might cause, there may be some providers on the opposite end of the spectrum.

    Some may want to accept these kinds of payments for all government transactions, regardless if they are over or under the $3,000 threshold. For merchants that wish to always accept this payment method, there are a number of things they can do with their customers to entice them to use their government charge cards.

    For starters, offering a discount to government agencies that use these cards will give procurement specialists an incentive … more

  • Do vendors have to accept government charge cards?

    May 10, 2013
    Merchants who sell their goods to government organizations will often encounter buyers who wish to pay with government charge cards. Some may be wondering if they have to accept these kinds of payments, as they can often carry higher processing fees. Ultimately, it's the cost of doing business with such customers.

    According to the GSA Smartpay website, "Merchants and vendors that wish to obtain a schedule contract to do business with the government are required to accept the government charge card as a method of payment for micro-purchases, generally those purchases under $3,000."

    Essentially, if a vendor wants to work with a procurement specialist at a government agency, the merchant will have to accept their payment method. While some may feel that the best option is to simply … more

  • New GSA mandate will require level-3 data processing

    April 18, 2013
    When the government initiated the GSA SmartPay program back in 1989, level-3 data was not a requirement for such transactions. That will soon be changing.

    Government organizations that adopt SmartPay are able to streamline their procurement processes and receive a rebate from the bank for certain purchases. It's easy to see why these money-saving opportunities are so desirable from the government side, but regulators believe that transactions can be taken to another level. That's why the Level-3 GSA mandate is being put into effect.

    This means that many new GSA contracts will require public organizations under the SmartPay program to require level-3 data. Offices are being encouraged to only seek out vendors that have the ability to process this information because it will go … more

  • Processing credit cards for the U.S. government

    April 13, 2013
    B2B payments require a different set of technologies and procedures than standard B2C payments, but the differences between these two aren't the only thing for vendors to be cognizant of. Government spending opens up a myriad of opportunities for merchants as well, but there are additional factors that must be considered. 

    Most government spending is tied up in expensive purchases, but the vast majority of actual transactions are relatively cheap. On average, 98 percent of spending is in transactions of $2,500 or more, but those types of purchases only represent 15 percent of all government procurements. So, while a small portion of budgets are allocated to lesser expenses, they take place far more often than expensive transactions.

    Some expenses are so small that the … more

  • How do you save money on payment processing?

    April 08, 2013
    Vendors are in the business of selling products and making money. Companies spend millions of dollars on marketing campaigns with the sole purpose of increasing interest in a product or service, selling more of it and, ultimately, enhancing profitability. It should be noted, though, that simply making more sales isn't the only way to make more money. Optimizing the value of every transaction is crucial, which is why vendors have to be cognizant of the data they process.

    Processing level 3 data with line item detail is the best way for organizations to ensure they are reducing fees on each transaction. This means that if an organizations is to buy 10 different items from your company, processing the data that individualizes each product will save money. Some credit card companies charge … more

  • MasterCard joins mobile payment game

    February 28, 2013
    It didn't take long for the major credit card companies to take notice of the mobile payments trend. 

    After businesses like Square and QR code generating platforms took off last year, the mobile payment industry exploded. Today, an increasing number of customers prefer to use their mobile cards to pay for products and services, regardless if they are B2C or B2B sales. Additionally, a number of individuals are migrating their eCommerce shopping practices to the mobile environment. 

    Not to be outdone, MasterCard has decided to throw its hat into the mobile ring.

    Earlier this week, the credit card giant announced a virtual wallet application, which will allow customers to keep their account info on their phones and pay for items directly as if they were using their … more

  • Reducing vendor costs: Why working with customers can help merchants lower their processing fees

    February 24, 2013
    Vendors may be in the business of making money, but that doesn't mean they don't have to spend their own. This blog has talked at length about the overhead costs many vendors are struggling to keep down and, according to an article in PYMNTS.com, part of the problem is that customers don't appreciate vendor payments.

    When one business buys from another and makes a payment, the procurement specialist isn't thinking about the vendor's expenses. They are already preoccupied with their own finances - whether or not they will see a return on their investment and how this particular purchase will affect their bottom line are just some of the many factors procurers weigh before paying their suppliers.

    "Are you familiar with the world of vendor payments?" the article asks. "Odds are you're not, … more

  • Processing p card payments can help vendors save money on customer acquisition costs

    January 10, 2013
    Acquiring new business should be the goal of every B2B vendor in 2013. Any new customers are, at least on paper, a positive for the organization. However, as every business knows, winning new clients isn't cheap, and the costs of acquiring new customers is expected to be a topic of much debate in the coming year.

    An article in the online publication Customer Think lists nine B2B sales predictions for 2013, and the reworking of acquisition budgets is right near the top of the list. Matt Heinz, the author of the article, suggests companies are going to be more about innovation in the coming year, as they find new ways to save money across the board.

    "Smart organizations will continue to reduce their marketing budgets as a percentege of revenue and acquisition costs," Heinz writes. "This … more

  • Bank fees reduce impact of B2B payments

    December 05, 2012
    This time of year, merchants around the country are doing whatever they can to increase their profits. Retailers and B2C suppliers rely on the holiday shopping season to inflate revenue and B2B vendors are frantically trying to improve their bottom line before the end of the year.

    As a result, several companies are looking for ways to cut operational costs across the board. Credit card processing, as previously mentioned in this blog, is a component of businesses that many decision makers believe is costing too much money.

    The fallout of the lawsuit against Visa and Mastercard is still being worked out, and while there is strong hope that the ultimate results will weigh heavily in the merchant's favor, a number of vendors are voicing their displeasure over high processing fees and … more