Today, many large organizations, including governmental agencies, have deployed or are deploying P-Cards payment systems for the payment of
vendor invoices as part of paperless initiatives. 21st Capital Corp has a Merchant Account and we accept P-Card payments as an accommodation to
our small business clients at cost - we do not markup the fee charged by the processing company.
We Don't Mark Up the Processing Fee
We Charge You Our Exact Cost
Card Knowledge
Level-3 Purchase Card Data enjoys the Lowest Processing Cost
“Level-1” card data is typically associated with consumer transactions and provides limited purchase data back to the cardholder
(your customer).
“Level-2” data adds more information to benefit the corporate/government/industrial buyer, but the number of fields is limited
because of the restricted data capture capabilities provided by most hardware-based POS terminals.
“Level-3” (also known as Level III) provides line item detail back to the cardholder, which is equivalent to the information
found on an itemized invoice, and requires greater system capability. We have partnered with 3 Delta Systems,
an online gateway, to handle data processing and increase the likelihood of delivering Level-3 data to cardholders.
P-Card Level-3 Processing Costs as of 3/15/2009
Mastercard Transactions
Less than $8,750
2.15% Flat
$8,750 or more ("Commercial Large Ticket")
1.60% + $40.00*
Visa Transactions
$5,000 - 8,750
1.34% + $35.00
$8,750 or more ("Commercial Large Ticket")
1.74% Flat
Here's How It Works It Couldn't Be Simpler For Your Customer
Your Customer's Initial Data Entry
Your customer will login to our secure website and enter information regarding an unlimited number of credit cards they
may use to pay invoices. They will enter this data once.
Type of Card
Mastercard
Visa
Cardholder's Name
Credit Card Number
Expiration Date
IVC (3 digit number on back of card)
Provided
Not Provided
How Your Customer Will Make Credit Card Payments
An A/P person will login to our website, select the following, and our server will automatically send Level-3
Data to the Processing Gateway, assuming the transaction is equal to or greater than $8,750.
Payment Method - "Pay By Credit Card"
Which Credit Card to Use
The Invoices to Pay by Clicking Checkboxes
Click the Submit button
Click the Submit button on the Confirmation Page
Cost-Benefit Analysis
If your customer wants to enlist you in its P-Card invoice payment program, it generally makes good financial sense both to join and to factor your
invoices with 21st Capital Corp, especially if your invoices represent "Commercial Large Ticket" merchant account transactions, defined as $8,750.00, or
more.
You will need a Merchant Account in order to participate in a P-Card program.
Merchant Accounts are difficult for small businesses to obtain, because the processing companies which issue these accounts see them as "high
risk," based upon the fact that vendees (i.e., your customers) have the right to dispute charges for up to 6 months, and demand repayment from their
bank, which will demand reimbursement from the processing company, which will demand reimbursement from you.
21st Capital Corp has a large line-of-credit Merchant Account which your customers can use for payment. That means you don't have to go through the
grueling process of trying to qualify for one, and probably won't obtain, anyway.
Faster Invoice Payments Means Lower Factoring Fees
Most studies indicate that vendees are able to dramatically reduce the time from invoice receipt to payment using P-Cards.
P-Card invoice payments should result in lower total cost
Your factoring fees and P-Card processing costs combined, should be less than factoring fees alone than if your customers paid by check rather than P-Card.
21st Capital Corp's merchant fees are the lowest available, which we pass on to our clients with no mark up.
Caveats
Know how long it takes your customers to pay
If your customers take an inordinately long time to pay by P-Card, it could cost you more in combined factoring fees and processing costs, than if they
simply paid by check. THEREFORE, IT IS WISE TO GET A VERY STRONG INDICATION FROM YOUR CUSTOMER HOW LONG IT WILL TAKE THEM TO PAY BY P-CARD BEFORE YOU
AGREE TO ACCEPT P-CARD PAYMENTS.
Make sure we will be able to provide Level-3 data
Before accepting your customer's P-Card invoice payment request, work with them to make sure that they will provide LEVEL-3 DATA
so you will enjoy the lowest processing costs.
Clearance Days
Merchant account funds are delivered to the bank by ACH transfer, and don't usually hit the bank until 2 days after the
transaction is processed.
Processing Cost Reserve
You will be prompted to check a checkbox after you have created/uploaded your invoice(s) indicating that your customer will pay the invoice by P-Card.
The amount of the additional charge for processing the Purchase Card payment can vary considerably, depending upon the quantity and quality of data we
are able to deliver the processing company when the P-Card transaction is processed. The 3 levels of data are: Level I, II or III data. Level III data
enjoys the lowest processing cost.
Since the actual cost will not be known until we receive our monthly credit card processing statement, we will reserve 3.5% of each invoice amount from
your advance. For example, 80% advance transactions will actually receive 76.5%. However, when we receive our monthly statement we will rebate you the
difference between the 3.5% processing reserve and our actual cost, if any.
