Rates & Fees
Mid-qualified rate
Also known as a partially qualified rate, the mid-qualified rate is the percentage rate a merchant will be charged whenever they accept a credit card that does not qualify for the lowest rate (the qualified rate).
This may happen for several reasons such as:
• A consumer credit card is keyed into a credit card terminal instead of being swiped
• A special kind of credit card is used like a rewards card or business card
A mid-qualified rate is higher than a qualified rate. Some of the transactions that are usually grouped into the Mid-Qualified Tier can cost the provider more in interchange costs, so the merchant account providers do make a markup on these rates.
The use of "rewards cards" can be as high as 40% of transactions.
So it is important that the financial impact of this fee be understood.
Non-qualified rate
The non-qualified rate is usually the highest percentage rate a merchant will be charged whenever they accept a credit card. In most cases all transactions that are not qualified or mid-qualified will fall to this rate.
This may happen for several reasons such as:
• A consumer credit card is keyed into a credit card terminal instead of being swiped and address verification is not performed
• A special kind of credit card is used like a business card and all required fields are not entered
• A merchant does not settle their daily batch within the allotted time frame, usually past 48 hours from time of authorization.
A non-qualified rate can be significantly higher than a qualified rate and can cost the provider much more in interchange costs, so the merchant account providers do make a markup on these rates.
Interchange Plus Pricing
Some providers offer merchant account services priced on an "interchange plus" basis.
These accounts are based on the "interchange" tables published by both Visa Visa Interchange and MasterCard MasterCard Interchange.
This type of pricing creates a discount rate by adding interchange rates, fees, assessments, markups and other costs.
