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 a long way toward preserving data security and allow the transparency needed in the public sector.
An article from the Federal Contract Intelligence Service explains the importance of level-3 data processing.
"Level-3 provides a more secure online purchase for both buyers and vendors, and it also provides a lower processing fee for the vendor," the article says. "This makes the procurement more secure for the federal cardholder and the vendor, another truly win-win scenario."
When level-3 data becomes a requirement for SmartPay contracts, it will be even more important for organizations to ensure they are able to process that kind of information. Those that don't will cut off a significant portion of their customer base. For example, a supplier of business technology that doesn't process level-3 data won't be able to sell to offices in the public sector and could lose out on a number of business opportunities.
Working with a payment solutions provider will help organizations obtain the systems they need to properly process this information and accept payments from GSA SmartPay organizations.