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ManufacturingDemo Case Study

Manufacturer P-Card Milestone Billing: A Sample Scenario

A custom equipment manufacturer was losing interchange on every milestone payment because its progress invoices carried no line-item detail of their own.

Level 3 OptimizationCost ReductionAR AutomationERPAccounting
Client
Corradine Industrial
Client type
Custom industrial equipment manufacturer
Company size
100–250 employees
Locations
2 plants
Processing volume
$2.8M / month
Average savings opportunity identified: 18%7–14 day onboardingUnder 24-hour support responseDemo proof points — verify before final launch.

Executive summary

This is a hypothetical example created to illustrate how this service could work for a business with these needs. It is not a description of an actual client engagement. The company is invented and every figure below is an illustrative assumption, not a measured result. Assume the following scenario. Corradine bills custom equipment in three milestones across a four-month build. Customer AP departments pay by purchasing card for the float, and every one of those payments was downgrading because milestone invoices referenced the original order rather than carrying their own line-item detail.

  • Line-item data reaching the networks on every commercial card transaction.

  • Qualification reported monthly.

  • AR out of the standalone terminal.

Client profile

Industry
Manufacturing
Locations
2 plants
Monthly volume
$2.8M / month
Average ticket
$46,000
Software used
ERPAccounting suiteStandalone gateway

The challenge

Purchasing card payments downgrading on every milestone invoice.

  • Commercial card volume downgrading to non-qualified.
  • Required Level 3 fields absent from the transaction record.
  • No visibility into cost to collect by customer.

Why the previous setup was failing

Previous setup
  • • Payments keyed into a standalone virtual terminal.
  • • Tiered pricing obscuring qualification.
  • • No line-item data reaching the card networks.
Why it failed
  • • A virtual terminal cannot transmit Level 3 line-item data.
  • • Tiered pricing hid downgrades inside a qualification bucket.
  • • No single owner was accountable for payment cost.

Our assessment

  • Twelve months of statements normalized to one baseline.
  • Transaction-level downgrade analysis by card type.
  • Field mapping of ERP data against Level 3 requirements.

The recommended solution

  • Move to interchange-plus so qualification is visible.
  • Integrate payments with the ERP.
  • Monitor qualification monthly.

Implementation Process

  1. 1

    Week 1 — Statement review

    Three months of statements plus a sample invoice, normalized to a single interchange-plus baseline so every line is comparable.

  2. 2

    Week 2 — Downgrade analysis

    Transaction-level review identifying which card types downgraded and which required data fields were missing.

  3. 3

    Weeks 3–4 — Connector and field mapping

    Payment connector installed against the existing ERP; invoice fields mapped to the Level 2 and Level 3 requirements.

  4. 4

    Week 5 — Test transactions

    Live test transactions confirmed qualification per card type before any production volume moved.

  5. 5

    Week 6 — Cutover

    Cutover between billing cycles, with the previous setup kept available for rollback for one full cycle.

  6. 6

    Weeks 7–10 — Verification

    First full month compared against projection; qualification reported by card type and customer.

Technology and integrations

Integration changes

  • • ERP payment connector installed.
  • • Line items, freight and tax mapped to Level 3 fields.
  • • PO and customer reference populated from the order.

Processing changes

  • • Tiered pricing replaced with interchange-plus.
  • • Qualification reported by card type.

Obstacles and resolutions

Obstacle

Freight billed separately, missing from the transaction.

Resolution

Freight would move onto the invoice as a line item.

Obstacle

AR staff accustomed to the virtual terminal.

Resolution

Integrated flow would be piloted with a fallback available for one cycle.

Measurable results

Illustrative only — modeled at 60 to 110 basis points on qualifying p-card volume.

Operational improvements

  • • Payments taken against the invoice rather than re-keyed.
  • • Settlement written back to the ledger daily.

Reporting improvements

  • • Qualification rate by card type.
  • • Cost to collect by customer.

Funding improvements

  • • Consistent settlement timing.
  • • Deposits reconciled to invoices automatically.

Customer experience improvements

  • • Customers pay against an invoice rather than reading a card over the phone.

Before and after

Before and after comparison for Corradine Industrial
MeasureBeforeAfter
Commercial card qualificationNon-qualified on most volumeLevel 3 where card and data support it
PricingTieredInterchange-plus
AR workflowKeyed into a standalone terminalTaken against the invoice in the ERP

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Related industries

industrie
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Deposits, progress payments and PO matching across long production cycles.

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Related insights

Insight

How to Read a Merchant Statement Line by Line

Finding the downgrades yourself before anyone quotes you a rate.

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Insight

What Is Level 3 Processing, and Who Actually Qualifies

The line-item fields that decide your interchange.

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Frequently asked questions

Are these results guaranteed?+

No. This engagement is demonstration content built on realistic scenarios. Actual outcomes depend on your volume, mix, software, and current pricing — which is exactly what a review establishes.

How long did the Corradine Industrial engagement take?+

The implementation ran across 6 phases; most comparable environments cut over in 7 to 14 business days once scope is agreed.

Do we have to change software to see similar results?+

Usually not. Most of this work happens in merchant structure, pricing, data capture, and integration configuration around software you already run.

Can we see a version of this analysis for our business?+

Yes. A payment review returns the same structure — assessment, recommendation, projected impact — against your own statements.

Want this analysis for your business?

Send us your current setup and we'll return a written assessment covering cost, integrations, reporting, and funding.

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Related solutions and references

The pages that explain the payment methods, integrations and account structure behind this engagement.

Guidecommercial card acceptance guideYour customer's AP department pays by purchasing card because it suits their process. Whether that suits yours depends almost entirely on what data you can send with it.Open Case studyDistributor Interchange Recovery: A Sample ScenarioA wholesale distributor with commercial-card-heavy customers found the interchange difference was moving net profit, not just cost of sales.Open Case studyMillwork Deposits and Progress Billing: A Sample ScenarioA custom architectural millwork shop was losing large deposits to declines and paying non-qualified interchange on every GC card payment. Restructured limits and Level 3 data changed both.Open QuestionLevel 3 data explainedLevel 3 processing is the transmission of detailed line-item data alongside a commercial card transaction so it qualifies for the lowest interchange rate the card networks offer. It requires product codes, item descriptions, quantities, unit prices, freight and duty on top of the Level 2 requirements of sales tax and a purchase order reference. It applies only to commercial, corporate, purchasing and government cards, because consumer cards have no Level 3 category.Open QuestionWhat causes a downgradeA transaction downgrades when it fails to meet the requirements of the interchange category it would otherwise qualify for and settles at a more expensive one instead. Common causes are missing line-item or Level 2 data, freight billed on a separate invoice, settlement outside the required window, a missing purchase order reference, and sales tax left blank rather than flagged exempt. A downgrade produces no error and no alert: the payment succeeds normally and simply costs more.Open QuestionACH vs credit card costOn large invoices, almost always. ACH is priced as a flat fee per transaction and a card as a percentage of the invoice, so the gap widens with every dollar. The fee on a $50,000 ACH payment is identical to the fee on a $500 one, while the card cost scales throughout. On small invoices the two can be comparable, and the crossover point depends on your specific pricing.Open

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