When we refer to purchasing cards, we are referring to businesses, corporations, or the government wanting to buy something from your company using a credit card. In the government's case, sometimes these are called impact cards.
The two key advantages of accepting purchasing cards is that you are more likely to get the business if you can accommodate the purchasing entities preferred method of paying. In fact often organizations that use purchasing cards will only work with companies that accept them. The other important advantage is that you will typically receive your payment much faster. With a purchasing card transaction, you do not have to wait for the invoice to be sent out and then processed, and then a check made out to you and finally sent out to you. This process usually takes one to three months.
The organizations that use purchasing cards like them because it usually circumvents the purchase order process as they are pre-approved for certain spending limits with their purchasing card. Thus they will spend with you faster when using a purchasing card.
It is not hard to set yourself up to accept the cards. It is not much different from your side than to be set up to accept credit cards in general. It is very important however that from our side, you are set up correctly. What happens with purchasing cards is that in the process of completing the transaction, the system you are using (terminal, software, or whatever) needs to prompt from you for some additional information that is not typical to a general credit card transaction. If you do not supply this information, your transaction will downgrade which means you end up paying a higher percentage on the transaction than necessary.
In our experience, we have found that not every company handles purchasing cards well, and that even when trying to set it up correctly, there still ends up being the dreaded downgrades. We have an affiliation with a company that has been handling purchasing cards for a long time and does a great job of it. The base rate that you get set up with is the rate your charges come in at.
Don't forget also, that once you are set up to accept purchasing cards, you will also be able to accept regular credit cards as well.
As a merchant account provider, Acceptance Services offers the full range of services related to opening and maintaining merchant accounts. Please, talk to us about your business needs. Our knowledgeable and friendly customer service representatives would be able to help you get a competitive credit card processing account for your Point of Sale (POS), as well as advice you on the best credit card machines and credit card terminal.
