Qualified vs Non-Qualified Credit Card Rates

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Qualified vs Non-Qualified credit card rates

The most common forms of rate structures for credit card rates are: 

2-Tiered: Qualified and Non-Qualified

3-Tiered: Qualified, Mid-qualified, or Non-qualified

Each and every transaction you accept is classified into one of the above and is the basis for the credit card rate you see on your statement.

As a general rule, qualified transactions are going to be “standard” cards;  without any consumer or corporate rewards associated with them. Accepted in the “standard” method expressed in your merchant processing agreement, this is where Card-Not-Present (CNP) setup comes into play.

Mid and Non-Qualified transactions include:

Rewards cards, keyed-in payments (for swipe accounts), AVS (Address Verification Service) does not match or is not performed, not all required fields are entered, or the payment was entered in a late batch. Ex. the payment was sent to the processor 48 hours or more past the time of the authorization.

March 10th, 2017 by