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Case Study Medtronic

Industry: Medical / Pharmaceutical

Medtronic is a global leader in medical technology - alleviating pain, restoring health and extending life for millions of people around the world. Medtronic requires a Level-3 payment processing solution that can support large transaction volumes generated from government hospitals and medical groups.

Challenge

Medtronic delivers and sells their products and technology to a large number of government clients, such as military and U.S. Department of Veteran Affairs hospitals. These customers requested Medtronic pass Level-3 data for two key reasons: First, the transaction data is used to reconcile invoice and payment information on the back-end; secondly, transactions processed with Level-3 can cost much less than processing a Purchase Card transaction with only Level-1 or Level-2 information.

Solution

After consultation with their acquirer, Medtronic issued a Request for Proposal (RFP) and 3Delta Systems^® (3DSI) was selected as the best processor to support their unique Level-3 processing needs. Using EC-Zone^®, 3DSI’s fully hosted VPOS (virtual point of sale) processing solution, Medtronic customers now receive the best processing rate for using level-3 data – often a savings of 30% or more.

Additionally, the Level-3 information provides increased customer satisfaction by delivering critical invoice information about the items purchased such as Item Part Number, Description, Quantity, Unit of Measure, Price and more.

Using EC-Batch^®, 3DSI’s system for processing transactions in batch files, Medtronic transfers their high-volume files via FTP protocol daily. The 3DSI gateway automatically processes the file and returns responses to the Medtronic internal computer system.

Results

Implementing 3DSI’s processing solutions allowed Medtronic to retain their government client-base, as the government is mandating or strongly recommending the use of Level-3 data. “3DSI helped us maintain and grow our government business, said Lori Hanson, Medtronic, Cash Transactions Manager.” “By passing Level-3 data to our customers, they are able to reconcile their accounts quickly, easily and at the department-level. The streamlined process often allowed hospitals to reduce their staffing requirements.”

Other benefits delivered with Level-3 include:

• Simplified transaction accounting and reconciliation
• Capability to audit purchases and ensure policy compliance
• Information for supply and commodity management

Beyond our initial payment objectives, 3DSI also delivered:

• Improved transaction reporting
• Increased security standards
• Streamlined internal communication due to the Internet-based solution
• Easy-to-use payment interface