Why do I see sales tax on my credit card reports?

Ledet Training does not charge sales tax on its training services. This is true whether or not your organization is tax-exempt.

Because Ledet Training processes a number of large credit card transactions, we use a feature of the credit card processing network called Level 3 Interchange Plus data which maximizes the discount rate we receive on credit card transactions.

In order to qualify for the higher Level 2 and Level 3 interchange discount rates, Visa and Mastercard sales tax line item data can not be zero, even if no sales tax is charged on the transaction, so as a workaround the nominal amount you see listed as sales tax on the Level 3 credit card data you may be receiving is simply a data entry that only appears on that bank data. Your invoice or sales receipt properly reflects the correct amount of the invoice without the spurious sales tax data forced by the Mastercard/Visa Level 3 interchange plus processing system.

To take advantage of the significantly higher discount rate available through Interchange Plus pricing, our credit card processor automatically structures the data so a sales tax line item of .01% of the charge price is calculated for the credit card processing data provided to the credit card interchange network. This is not actually sales tax and any amount you see on your statement as sales tax can safely be ignored. The other line items on your statement are reduced by the amount listed for the line item specified sales tax on your credit card statement is so the total charge does properly match your invoice.