Menu
X

Tags Archives: GSA Smartpay

IT-70 Prepares For a New Addition With the Creation of a Cyber Security SIN

Source: Winvale – GSA Schedule Blog

10 Important Facts About the New Health IT SIN

Source: Winvale – GSA Schedule Blog

Everything You Need to Know About the HCaTS Contract Vehicle

Source: Winvale – GSA Schedule Blog

Are Merchant Services Fees Allowable on a GSA Task Order Invoice?

Minimum Sales Requirement Dollar SIgnThe short answer is yes! Many organizations we work with believe they are required to absorb merchant services fees associated with payment made via Government credit card. While this used to be the case, as of January 2013, surcharges and convenience fees are allowable. The development is a positive one for GSA vendors however it’s been our experience that contractors continue to go forth with “business as usual”. How come? As one GSA SmartPay representative I spoke with recently put it, “the Government always has the ability to take its business elsewhere” – given the natural aversion to paying surcharges that may amount to 3% to 4% of the total purchase fee when they have not had to pay them in the past. This seems reasonable considering the convenience of the purchase which makes GSA SmartPay an attractive option for GSA Schedule holders.  It should also be noted that contractors can save more on their processing fees by ensuring their that they have reached level-3 compliance with the GSA.Something to think about the next time you’re invoicing the government!

As a GSA contractor, it is important to understand how the GSA SmartPay charge card works. A great blog on the program can be found here. 

Finally, as a note, the changes described above went into effect via Smart Bulletin 17 posted on the Smartpay website.

GSA SmartPay Charge Card Program

gsa smartpayThe GSA SmartPay® program is the largest charge card program in the world today. It was established fourteen years ago to provide the government a more efficient way to conduct business transactions. According to GSA more than 350 Federal agencies, organizations, and Native American tribal governments participate in the GSA SmartPay program. Today, it is reported that there are nearly 3 million cards in circulation.

As a GSA contractor, it is instrumental to understand how the GSA SmartPay® 2 charge card works. According to the General Systems Administration, “you can maximize your ability to capture government sales by accepting these cards.” Other incentives for accepting a GSA SmartPay® 2 charge card include, having fewer forms to fill-out during transactions, as well as having electronic records of sales.

GSA SmartPay® 2 charge cards are easy to identify, because there are only four different card designs, and each have the GSA logo displayed. Another way of spotting a GSA SmartPay® 2 charge card is by its Bank Identification Number (BIN). A BIN is the first four numbers in the sequence of the card, and each of the four different types of GSA SmartPay® 2 charge cards have specific BINs. Since the GSA SmartPay® 2 charge cards are easy to recognize, it allows contractors to track and report federal sales more efficiently.

Contractors who “do not currently accept these cards, can contact any financial institution or one of the GSA SmartPay® three contractors (i.e. Citibank, JPMorgan Chase, and U.S. Bank) to establish a merchant account (GSA SmartPay® 2 vendor brochure)”. There are four different offer types of GSA SmartPay® 2 charge cards that are offered: purchase cards, travel cards, fleet cards, and integrated cards. The GSA SmartPay® 2 charge cards are either VISA, MasterCard, Voyager, or Wright Express. However, Voyager and Wright Express cards are only used for fleet related purchases.

 

PoST Pilot Looks to Streamline SmartPay Transactions

smartpayAs you might know, GSA’s SmartPay program represents the largest charge card program in the world. Established in 1998, the program serves more than 350 federal agencies, organizations, and Native American tribal governments. In FY 2010, approximately 98.9M transactions were made and $30.2B charged using the GSA SmartPay charge cards, creating $325.9M in refunds.

With GSA seeking to better leverage its buying power through Federal Strategic Sourcing Initiatives (FSSI), the agency has also made efforts to streamline how it spends. One key initiative currently underway would simplify the SmartPay program and require Level 3 data with each transaction. The initiative is called the Point of Sale Transactional Data (PoST) pilot. The pilot program currently applies to three Schedules and SINs:

  •  Schedule 67 Photographic Equipment: SINs 19-100 & 20-316
  •  Schedule 51 V Hardware Superstore: SINs 105-001 & 105-002
  •  Schedule 58 I Professional Audio/Video Telemetry/ Tracking, Recording/Reproducing and Signal Data Solutions: Part I Products

The purpose of the program is to provide better pricing and more information to Multiple Award Schedule (MAS) customers. There are two areas that will bring value to GSA customers which vendors are required to adhere to: Point of Sale Discounts and Transactional Data. In the first, vendors must automatically provide the GSA Schedule price or lower sale price and tax exemption when presented with a GSA SmartPay purchase card through the following ordering channels: Mail order, telephone order, E-mail, vendor commercial website, and retail sales in physical storefront. Within the second, vendors are required to capture and provide Level-3 data at point of sale to its order processors (e.g., merchant bank) for all purchases made with the GSA SmartPay purchase card. All Level-3 data must be at hand for reporting to the Government. Taken together, the two requirements will enable customers to automatically obtain GSA Authorized pricing and more data on transactions. For participating vendors who currently do not offer point of sale discounts and level-3 data, the PoST pilot will standardize sales practices to federal customers.

All vendors present on the Schedule and SINs identified above must participate nine months after contract award or acceptance of the Mass Mod establishing the pilot. The Mass Mods which incorporated the PoST related language to existing contracts are either A173 (Schedule 67 Refresh 9), A187 (Schedule 51V Refresh 11), or A198 (Schedule 58 I Refresh 16)). To verify whether or not you have accepted the mod, please visit the Vendor Support Center or feel free to reach out to us for further assistance.

  • [contact-form-7 id="2459" title="Contact form 1"]
  • May 2021
    M T W T F S S
     12
    3456789
    10111213141516
    17181920212223
    24252627282930
    31  
  • Blog Categories
    Blog Calendar
    May 2021
    M T W T F S S
     12
    3456789
    10111213141516
    17181920212223
    24252627282930
    31  

    © Copyright 2017 GSA Schedule. GSASchedule.com