How to entice government agencies to use their GSA charge cards

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 to use these cards for all kinds of purchases. Because they can expedite the processing phase, they are a benefit for vendors and by offering a discount to customers, they can benefit that side of the transaction as well.

"Offering a point of sale discount to Government cardholders is a great way to differentiate a business from others, and to increase the amount of government purchases," says the GSA SmartPay website. 

Vendors can also compel government customers to use these cards by processing Level 3 information. The line-item detail of each transaction offers transparency and makes it easier for public offices to track and report on all procurements. Processing this data certainly helps the vendor as well, by allowing merchants to pay the lowest possible interchange rate. Working with a payment solutions provider will help vendors obtain the tools needed to easily process this kind of data.

by Ty Hardison

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