P-Card (or Purchasing Card)

[AnnBeardsley]

My purchaser wants to pay by Purchasing Card (PCard, P-Card). Is that the same as accepting a standard VISA or Mastercard? Are the rates the same?

[kellyj]

@AnnBeardsley

Thanks for your question and welcome to the community. Most PCards should work the same as other Credit Cards, and run the same way.

A few rules of thumb- the card may have restricted MCC codes, so you do need to make sure your business is set up to receive it.

Second, you may want to send the Customer who is paying with this method an invoice, rather than taking the payment manually.  Invoice fees are 2.9% + $.30 per transaction.

[AnnBeardsley1]

Thank you! If I invoice through Square, do I pay a lower rate or is it the same? My bank isn't familiar with PCards so this is new to me.

[kellyj]

@AnnBeardsley1

They should be branded the same way and processable, because it's essentially a card issued so that the main business card doesn't have to be used.

Square invoices fee is 2.9% + $.30 per transaction- so it's lower than if you were to manually take the payment. I would have the card holder ask what MCC's the card requires.