The difference between a purchasing card and a consumer card is that the purchasing card is used by businesses and the consumer card is used by individuals. Purchasing cards allow for additional data such as tax information and customer account detail to be captured during a transaction. The information captured is electronically sent to your customers, thereby eliminating the need for invoices.

You will be able to accept all consumer and business MasterCard and Visa cards. However, not all acquiring banks are able to capture the enhanced data that many businesses deem necessary. For more information on enhanced data please refer to question 6.

When a purchase is made, the corporation presents the card for payment. The card is swiped (Level 2 or 3) in the dial terminal or entered into the supplier’s PC program (Level 3). The dial terminal or PC will prompt the supplier to enter enhanced data (variable customer codes and sales tax amount, line item detail). Once the transaction is approved, the information is stored and reported back to the corporation on their monthly statement. You, the merchant, are paid within 48 and 72 hours. The acquiring bank will deposit the money electronically directly into your bank account.

The card works the same way as the "point of sale" transaction from your customers, only the supplier inputs the information into the dial terminal or PC received either by phone or fax. The supplier receives authorization in the same way.

The method of receiving payment is similar to traditional credit card arrangements. The supplier will enter into a joint business relationship with the acquiring bank. Once the merchandise or service has been ordered and authorized, the acquirer will automatically credit your bank account within three days. Please refer to The Flow of Money for more information.

• Payment in 2 days instead of 45 - 90 days
• Improved cash flow and opportunity to invest money elsewhere
• Opportunity to gain new business and/or retain competitive advantage in the marketplace
• Preferred vendor status
• Stronger partnerships with clients
• Faster more efficient buying process
• Electronic authorization of purchases at point-of-sale
• More efficient accounts receivable process
• Elimination of invoice processing; reduction in postage, invoicing/statement, resources
• Reduction in administrative costs associated with billing and collections
• Support of complete electronic commerce work-flow cycle for suppliers who have on-line catalogs (electronic purchase to payment)
  
  

Please see General Costs To Suppliers Accepting MasterCard.

• The process usually takes about 2 – 3 weeks for a terminal or software based product.
• Depending on the supplier's sense of urgency and type of product chosen, the process may take as little as a week to complete credit checks, negotiate and execute the contract, and install and train employees.
• Fully integrated systems usually involve programming/mapping and can take much longer.
  
  

• Suppliers can contact their current bank service provider or use one of our recommended acquirers below. Not all acquiring banks have the products to support enhanced data capture.
• Acquirers/Merchant Banks
  • Provide a variety of products and pricing
  • Support new supplier signup by providing hardware, software, and training to get suppliers set up to accept credit cards as payment
  • Provide credit card processing and service for suppliers
  • Support supplier upgrade initiatives