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Selling to the government requires special credit card processing

Government agencies and large businesses issue p-cards (purchasing cards) to their employees. They are basically the same as credit cards, except all the invoicing is combined and more information is gathered so that accounting is greatly simplified. This saves the government, and anyone else issuing p-cards, lots of money. However, the businesses accepting these cards must provide extra information in the credit card transaction. Businesses that provide this extra information are rewarded by having lower credit card processing rates.

Basic credit card processing is called Level I processing, and it only requires the credit card, purchaser's name, the number on the back, and the zip code.

Level II processing requires a bit more information, including the seller's information, whether they are a disadvantaged business, and sales tax.

Level III processing requires everything that you would have on an invoice, including product description, itemized costs, sales tax, shipping, and more.

If you want to accept government p-cards for purchases of $2500 or less, you must use a credit card processor that does Level III processing. Most credit card processors do not do this processing. They may do Level II, but don't do Level III. The benefit in doing this extra research is that you will be able to accept P-Cards from anyone and you will receive a lower credit card rate for each transaction.