First Purchasing Card Program
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The First Purchasing Card Program from First National is a payment solution that eliminates payment reconciliation for you while providing various levels of transaction data for your customers - all with one swipe of a card.
It Benefits Your Customers
Millions of business-to-business customers today enjoy the benefits of
increased transaction information while they do nothing more than present
a credit card for purchases.
It Benefits You
The millions of businesses using purchasing cards need suppliers that can
accommodate them. Accepting purchasing cards gives you the opportunity
to fit that bill and become a preferred supplier - helping you retain
your current customers and increase your potential for new business.
In addition to positioning you as a preferred supplier, the First Purchasing
Card Program reduces your invoicing costs and your collection time. Receive
payment in 24 to 48 hours, instead of the usual 30, 60 or 90 days typical
of the invoicing/billing method.
Government agencies, universities and medium to large businesses are the primary organizations using purchasing cards. Each year, businesses like these process over $400 billion worth of "small dollar purchases," ranging from office supplies to computers to professional services. These purchases traditionally involve labor-intensive, paper-based procedures that often cost more than the purchase itself. Purchasing cards are significantly reducing these purchasing expenses by replacing requisitions, purchase orders and checks for payment with a simple credit card transaction.
Getting Started
Set up is easy. First National equips your point-of-sale system with the
necessary hardware and software to process purchasing card transactions.
If you already process with a compatible system, this upgrade could be
as simple as downloading software.
Various Information Levels Available
The First Purchasing Card Program offers several levels of information
- including Level II or Level III processing. Level II captures sales
tax amount and customer code information (similar to a personal identification
number) at the point of sale. Level III captures the information found
in Level II plus line-item transaction detail like quantity, item description,
purchase order number and more.
With one simple program you can stay competitive in the business-to-business world, attract new business and increase your profits. The First Purchasing Card Program from First National offers your customers the convenience of detailed transaction information while providing a simple payment solution that works for you and your customers.
- Improved cash flow: By accepting purchasing cards, you will receive payment within 24 to 48 hours, instead of the 30, 60 or 90 days typical of the traditional invoice/billing process.
- Reduced paperwork and invoicing: Accepting purchasing cards eliminates the need to prepare paper invoices because transaction information is generated and captured electronically.
- Reduced billing and collection expenses: You will no longer need to send invoices to customers who use purchasing cards. Invoices and payments are processed electronically through the purchasing card payment system - saving you the time and expense of billing, collection and postage.
- Enhanced competitive position: You will gain preferred vendor status by accepting purchasing cards and providing your customers with the enhanced transaction data they want.
- New sales channels: Promoting your ability to accept purchasing cards is likely to attract new customers, given the growing number of organizations that already utilize purchasing card programs today.
- Reduced interchange fees: When you provide enhanced transaction data, your transactions qualify for reduced interchange fees, resulting in savings for you.
Government agencies, universities and medium to large businesses are the primary users of purchasing cards. These organizations have found purchasing cards useful for purchases from inventory to supplies and raw materials:
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Levels of Transaction Information
With the First Purchasing Card Program, you can position your company as a preferred supplier by providing the level of transaction information your customers want.
Level I
Standard transaction data is available to your customers with Level I processing:
- Card Number
- Total Transaction Amount/Date
- Merchant Name
- City, State and Zip Code
- Merchant Category Code
Level II
With Level II processing, your customers receive the standard transaction
data available in Level I as well as additional information, gathered
at the point-of-sale:
- Sales Tax Amount
- Customer's Accounting Code
Note: MasterCard requires you to provide the following
information for interchange qualification purposes only; it will not
show up on a customer's receipt:
Federal Taxpayer Identification Number
Merchant Type Code
Level III
The most comprehensive level of transaction data is Level III. Customers
receive all information provided in Level I and Level II processing,
as well as the potential for nearly unlimited line-item detail - similar
to that on a purchase order receipt. Just some of the details available
with this processing level include:
- Customer Purchase Order Number
- Discount Amount
- Freight/Shipping Amount
- Item Stock #
- # of Units Ordered
- Product Descriptions
- Destination Postal/Zip Code
- Ship From Postal/Zip Code
- Order Date (YYMMDD)
Why Should My Business Accept Purchasing Cards?
The reason is simple: purchasing cards streamline the complicated purchase order process. For both businesses and suppliers, purchasing cards eliminate the time and paperwork associated with requisitions, approvals, purchase orders and invoice processing.
With traditional purchasing processes, small-dollar purchase fees are often more than the purchase itself. Therefore, it is no longer economical to use the traditional purchase order process for many purchases under $5,000.
Businesses that have discovered the economic advantages of buying supplies and services with purchasing cards naturally prefer suppliers that welcome this form of payment.
Accepting purchasing cards improves your cash flow and reduces your billing and collection costs. Industry statistics indicate the cost to produce, mail, process and reconcile an invoice and payment can reach as much as $50. Collection time is also a concern. It can sometimes take 30, 60 or 90 days after invoicing to receive payment. Accepting purchasing cards eliminates the need for invoicing, which decreases billing costs and reduces collection time to just 24 - 48 hours.
When you accept purchasing cards, you receive payment directly from the bank, so you don't have to worry about getting paid.
First, you choose the card processing option (such as point-of-sale terminal or personal computer software) that best fits your company's needs. Once your processing option is in place, accepting purchasing cards is easy:
1.Your customer places an order in person or by phone.
2. At the time of purchase, you enter the transaction information.
3. The transaction is quickly authorized through your electronic processing system, and the sale is completed.
4. Your customer receives a receipt describing the items purchased, total amount of the sale, and any taxes paid.
That's all there is to it. It's as simple as a traditional credit card transaction!
How Can I Provide My Customers with More Transaction Information?
By accepting purchasing cards, you can provide your customers with purchase information electronically - helping them comply with tax regulations, meet reporting requirements, and simplify expense reconciliation. There are three levels of information available for you to provide to your customers. Level I is basic information, typical of a standard credit card transaction. Level II and Level III offer standard data in addition to a variety of additional information your customers may find valuable.
Level II Processing
With Level II, your customers receive sales tax amount and customer code
information at the point of sale.
Level III Processing
This processing level represents line-item information similar to what
you might see on a purchase order receipt. This information helps companies
monitor and report detailed purchasing behavior. With this information
companies can reconcile item quantity, unit price, shipping costs, and
other item-specific information.
How Do I Become a Level II or Level III Acceptor?
Send an E-mail with the "Purchasing Card" option selected, or call (800) 228-2443 for more information on accepting purchasing cards. If you already accept credit cards, becoming a Level II supplier may only involve a software upgrade to your current credit card terminal. For more information, call First National to find out how easily you can become Level II or Level III capable*.
* Becoming Level III capable typically requires a PC-based point-of-sale system.
First National provides Level II purchasing card solutions on a variety of dial terminal platforms and authorization vendors:
Vital
- VeriFone Tranz 330
- VeriFone Tranz 380
- VeriFone Tranz 380x2
- Thales Talento
- Hypercom T7E
- Hypercom T7P
- Hypercom T77
- Hypercom T7PRA Cellular
Global (MAPP)
- VeriFone Tranz 330
- VeriFone Tranz 380
- VeriFone Tranz 380x2
Please contact a First National representative at 888-359-5374 to find out how you can accept purchasing cards.
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