{"id":4370,"date":"2024-05-22T16:28:00","date_gmt":"2024-05-22T20:28:00","guid":{"rendered":"http:\/\/www.nationaltransaction.com\/credit-card-merchant\/?p=4370"},"modified":"2025-01-17T11:21:00","modified_gmt":"2025-01-17T16:21:00","slug":"qualified-mid-or-non-qualified-transactions","status":"publish","type":"post","link":"https:\/\/www.nationaltransaction.com\/credit-card-merchant\/qualified-mid-or-non-qualified-transactions\/","title":{"rendered":"Qualified Mid or Non-Qualified Transactions"},"content":{"rendered":"<p data-sourcepos=\"1:1-1:167\"><span class=\"citation-0 recitation citation-end-0\">Credit card transaction types are categorized based on the level of risk and processing cost associated with them.<\/span> Here&#8217;s a breakdown of the common types:<span class=\"button-container hide-from-message-actions ng-star-inserted\"> \u00a0 <button class=\"mat-mdc-tooltip-trigger button image-fade-on hide-from-message-actions\" aria-controls=\"sources\" aria-expanded=\"false\" aria-describedby=\"cdk-describedby-message-ng-1-32\"><\/button><\/span><\/p>\n<p data-sourcepos=\"3:1-3:16\"><strong>1. Qualified<\/strong><\/p>\n<ul data-sourcepos=\"5:1-13:0\">\n<li data-sourcepos=\"5:1-5:260\"><strong><span class=\"citation-1 recitation\">Definition:<\/span><\/strong><span class=\"citation-1 recitation citation-end-1\"> These are considered the &#8220;safest&#8221; and least expensive transactions for processors to handle.<\/span> <span class=\"citation-2 recitation citation-end-2\">They typically involve traditional credit or debit cards processed in person with a physical card swipe or chip insertion.<\/span><span class=\"button-container hide-from-message-actions ng-star-inserted\"> \u00a0 <button class=\"mat-mdc-tooltip-trigger button image-fade-on hide-from-message-actions\" aria-controls=\"sources\" aria-expanded=\"false\" aria-describedby=\"cdk-describedby-message-ng-1-32\"><\/button><\/span>\n<div class=\"container ng-tns-c3372787340-91 hide\">\n<div class=\"carousel-container ng-tns-c3372787340-91\"><\/div>\n<\/div>\n<\/li>\n<li data-sourcepos=\"6:1-11:113\"><strong>Characteristics:<\/strong>\n<ul data-sourcepos=\"7:5-11:113\">\n<li data-sourcepos=\"7:5-7:57\"><span class=\"citation-3 recitation citation-end-3\">Card is present during the transaction<\/span><span class=\"button-container hide-from-message-actions ng-star-inserted\"> \u00a0 <button class=\"mat-mdc-tooltip-trigger button image-fade-on hide-from-message-actions\" aria-controls=\"sources\" aria-expanded=\"false\" aria-describedby=\"cdk-describedby-message-ng-1-32\"><\/button><\/span>\n<div class=\"container ng-tns-c3372787340-92 hide\">\n<div class=\"carousel-container ng-tns-c3372787340-92\"><\/div>\n<\/div>\n<p>Cardholder&#8217;s signature is captured (if required)<\/li>\n<li data-sourcepos=\"9:5-9:89\"><span class=\"citation-4 recitation citation-end-4\">AVS (Address Verification Service) matches the billing address on file<\/span><span class=\"button-container hide-from-message-actions ng-star-inserted\"> \u00a0 <button class=\"mat-mdc-tooltip-trigger button image-fade-on hide-from-message-actions\" aria-controls=\"sources\" aria-expanded=\"false\" aria-describedby=\"cdk-describedby-message-ng-1-32\"><\/button><\/span>\n<div class=\"container ng-tns-c3372787340-93 hide\">\n<div class=\"carousel-container ng-tns-c3372787340-93\"><\/div>\n<\/div>\n<p>CVV (Card Verification Value) is provided and matches<\/li>\n<li data-sourcepos=\"11:5-11:113\">Transaction meets all security protocols and risk assessment criteria set by the card issuer and processor.<\/li>\n<\/ul>\n<\/li>\n<li data-sourcepos=\"12:1-13:0\"><strong>Examples:<\/strong> <span class=\"citation-5 recitation citation-end-5\">Swiping a standard Visa or Mastercard credit card at a retail store.<\/span><span class=\"button-container hide-from-message-actions ng-star-inserted\"> \u00a0 <button class=\"mat-mdc-tooltip-trigger button image-fade-on hide-from-message-actions\" aria-controls=\"sources\" aria-expanded=\"false\" aria-describedby=\"cdk-describedby-message-ng-1-32\"><\/button><\/span>\n<div class=\"container ng-tns-c3372787340-94 hide\">\n<div class=\"carousel-container ng-tns-c3372787340-94\">\n<div class=\"carousel-content ng-tns-c3372787340-94\">\n<div class=\"sources-carousel-source ng-tns-c3372787340-94 hide ng-star-inserted\" data-test-id=\"sources-carousel-source\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/li>\n<\/ul>\n<p data-sourcepos=\"14:1-14:20\"><strong>2. Mid-Qualified<\/strong><\/p>\n<ul data-sourcepos=\"16:1-23:0\">\n<li data-sourcepos=\"16:1-16:220\"><strong>Definition:<\/strong> These transactions fall in between qualified and non-qualified in terms of risk and processing cost. <span class=\"citation-6 recitation citation-end-6\">They often involve card-not-present transactions or cards with higher reward structures.<\/span><span class=\"button-container hide-from-message-actions ng-star-inserted\"> \u00a0 <button class=\"mat-mdc-tooltip-trigger button image-fade-on hide-from-message-actions\" aria-controls=\"sources\" aria-expanded=\"false\" aria-describedby=\"cdk-describedby-message-ng-1-32\"><\/button><\/span>\n<div class=\"container ng-tns-c3372787340-95 hide\">\n<div class=\"carousel-container ng-tns-c3372787340-95\"><\/div>\n<\/div>\n<p><strong>Characteristics:<\/strong><\/p>\n<ul data-sourcepos=\"18:5-21:80\">\n<li data-sourcepos=\"18:5-18:89\"><span class=\"citation-7 recitation citation-end-7\">Manually keyed-in transactions (online, over the phone, or mail order)<\/span><span class=\"button-container hide-from-message-actions ng-star-inserted\"> \u00a0 <button class=\"mat-mdc-tooltip-trigger button image-fade-on hide-from-message-actions\" aria-controls=\"sources\" aria-expanded=\"false\" aria-describedby=\"cdk-describedby-message-ng-1-32\"><\/button><\/span>\n<div class=\"container ng-tns-c3372787340-96 hide\">\n<div class=\"carousel-container ng-tns-c3372787340-96\"><\/div>\n<\/div>\n<p>Rewards cards with higher cashback or points benefits<\/li>\n<li data-sourcepos=\"20:5-20:33\">Business or corporate cards<\/li>\n<li data-sourcepos=\"21:5-21:80\">Transactions where AVS or CVV information is not provided or doesn&#8217;t match<\/li>\n<\/ul>\n<\/li>\n<li data-sourcepos=\"22:1-23:0\"><strong>Examples:<\/strong> Entering your credit card details online to purchase something, using a rewards card with travel benefits.<\/li>\n<\/ul>\n<p data-sourcepos=\"24:1-24:20\"><strong>3. Non-Qualified<\/strong><\/p>\n<ul data-sourcepos=\"26:1-33:0\">\n<li data-sourcepos=\"26:1-26:264\"><strong><span class=\"citation-8 recitation\">Definition:<\/span><\/strong><span class=\"citation-8 recitation citation-end-8\"> These transactions are considered the riskiest and most expensive to process.<\/span> <span class=\"citation-9 recitation citation-end-9\">They often involve international cards, manually keyed transactions without proper security measures, or cards with very high reward programs.<\/span><span class=\"button-container hide-from-message-actions ng-star-inserted\"> \u00a0 <button class=\"mat-mdc-tooltip-trigger button image-fade-on hide-from-message-actions\" aria-controls=\"sources\" aria-expanded=\"false\" aria-describedby=\"cdk-describedby-message-ng-1-32\"><\/button><\/span>\n<div class=\"container ng-tns-c3372787340-97 hide\">\n<div class=\"carousel-container ng-tns-c3372787340-97\"><\/div>\n<\/div>\n<\/li>\n<li data-sourcepos=\"27:1-31:56\"><strong>Characteristics:<\/strong>\n<ul data-sourcepos=\"28:5-31:56\">\n<li data-sourcepos=\"28:5-28:32\">International credit cards<\/li>\n<li data-sourcepos=\"29:5-29:65\">Manually keyed transactions without AVS or CVV verification<\/li>\n<li data-sourcepos=\"30:5-30:85\"><span class=\"citation-10 recitation citation-end-10\">High-risk businesses like online gambling or adult entertainment<\/span><span class=\"button-container hide-from-message-actions ng-star-inserted\"> \u00a0 <button class=\"mat-mdc-tooltip-trigger button image-fade-on hide-from-message-actions\" aria-controls=\"sources\" aria-expanded=\"false\" aria-describedby=\"cdk-describedby-message-ng-1-32\"><\/button><\/span>\n<div class=\"container ng-tns-c3372787340-98 hide\">\n<div class=\"carousel-container ng-tns-c3372787340-98\"><\/div>\n<\/div>\n<p>Keyed transactions for business or corporate cards<\/li>\n<\/ul>\n<\/li>\n<li data-sourcepos=\"32:1-33:0\"><strong>Examples:<\/strong> Using a foreign-issued credit card, manually processing a transaction without verifying the cardholder&#8217;s address.<\/li>\n<\/ul>\n<p data-sourcepos=\"34:1-34:25\"><strong>Why does this matter?<\/strong><\/p>\n<ul data-sourcepos=\"36:1-39:0\">\n<li data-sourcepos=\"36:1-36:212\"><strong><span class=\"citation-11 recitation\">Processing Fees:<\/span><\/strong><span class=\"citation-11 recitation citation-end-11\"> Merchants are charged different fees for each transaction type.<\/span> <span class=\"citation-12 recitation citation-end-12\">Qualified transactions have the lowest fees, while non-qualified transactions have the highest.<\/span><span class=\"button-container hide-from-message-actions ng-star-inserted\"> \u00a0 <button class=\"mat-mdc-tooltip-trigger button image-fade-on hide-from-message-actions\" aria-controls=\"sources\" aria-expanded=\"false\" aria-describedby=\"cdk-describedby-message-ng-1-32\"><\/button><\/span>\n<div class=\"container ng-tns-c3372787340-99 hide\">\n<div class=\"carousel-container ng-tns-c3372787340-99\"><\/div>\n<\/div>\n<\/li>\n<li data-sourcepos=\"37:1-37:231\"><strong><span class=\"citation-13 recitation\">Tiered Pricing:<\/span><\/strong><span class=\"citation-13 recitation citation-end-13\"> Many payment processors use tiered pricing models, categorizing transactions into these types and charging accordingly.<\/span> This can sometimes be confusing or lead to unexpected costs for merchants.<span class=\"button-container hide-from-message-actions ng-star-inserted\"> \u00a0 <button class=\"mat-mdc-tooltip-trigger button image-fade-on hide-from-message-actions\" aria-controls=\"sources\" aria-expanded=\"false\" aria-describedby=\"cdk-describedby-message-ng-1-32\"><\/button><\/span>\n<div class=\"container ng-tns-c3372787340-100 hide\">\n<div class=\"carousel-container ng-tns-c3372787340-100\"><\/div>\n<\/div>\n<p><strong><span class=\"citation-14 recitation\">Interchange Fees:<\/span><\/strong><span class=\"citation-14 recitation citation-end-14\"> The card networks (Visa, Mastercard, etc.) also charge interchange fees for each transaction, which vary based on factors similar to those used for transaction type categorization.<\/span><span class=\"button-container hide-from-message-actions ng-star-inserted\"> \u00a0 <button class=\"mat-mdc-tooltip-trigger button image-fade-on hide-from-message-actions\" aria-controls=\"sources\" aria-expanded=\"false\" aria-describedby=\"cdk-describedby-message-ng-1-32\"><\/button><\/span><\/li>\n<\/ul>\n<p data-sourcepos=\"40:1-40:70\"><strong>Understanding these transaction types is crucial for merchants to:<\/strong><\/p>\n<ul data-sourcepos=\"42:1-45:0\">\n<li data-sourcepos=\"42:1-42:171\"><strong>Negotiate better processing rates:<\/strong> By understanding the factors that influence transaction categorization, merchants can negotiate better fees with their processors.<\/li>\n<li data-sourcepos=\"43:1-43:209\"><strong>Optimize payment processing:<\/strong> Merchants can take steps to minimize the number of mid-qualified and non-qualified transactions, such as encouraging in-person payments or using address verification systems.<\/li>\n<li data-sourcepos=\"44:1-45:0\"><strong>Control costs:<\/strong> By being aware of the different transaction types and their associated costs, merchants can better manage their payment processing expenses.<\/li>\n<\/ul>\n<p data-sourcepos=\"46:1-46:280\"><strong>Remember:<\/strong> The specific criteria for each transaction type can vary depending on the payment processor, card network, and individual merchant account. It&#8217;s always best to clarify with your payment processor to understand their specific categorization rules and fee structures.<\/p>\n<p><strong>To establish a merchant account for your business call now 888-996-2273 or click here <a href=\"https:\/\/www.nationaltransaction.com\/\">NationalTransaction.Com <\/a>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Credit card transaction types are categorized based on the level of risk and processing cost associated with them. Here&#8217;s a<\/p>\n<div id=\"more-button\"><a class=\"btn btn-more excerpt-more\" href=\"https:\/\/www.nationaltransaction.com\/credit-card-merchant\/qualified-mid-or-non-qualified-transactions\/\">Continue Reading<\/a><\/div>\n","protected":false},"author":2,"featured_media":4371,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[69],"tags":[199,392,7,151,84,298,212],"class_list":["post-4370","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-best-practices-for-merchants","tag-bank","tag-data","tag-e-commerce","tag-electronic-payment","tag-merchant","tag-processor","tag-transaction"],"_links":{"self":[{"href":"https:\/\/www.nationaltransaction.com\/credit-card-merchant\/wp-json\/wp\/v2\/posts\/4370","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaltransaction.com\/credit-card-merchant\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaltransaction.com\/credit-card-merchant\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaltransaction.com\/credit-card-merchant\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaltransaction.com\/credit-card-merchant\/wp-json\/wp\/v2\/comments?post=4370"}],"version-history":[{"count":3,"href":"https:\/\/www.nationaltransaction.com\/credit-card-merchant\/wp-json\/wp\/v2\/posts\/4370\/revisions"}],"predecessor-version":[{"id":5131,"href":"https:\/\/www.nationaltransaction.com\/credit-card-merchant\/wp-json\/wp\/v2\/posts\/4370\/revisions\/5131"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nationaltransaction.com\/credit-card-merchant\/wp-json\/wp\/v2\/media\/4371"}],"wp:attachment":[{"href":"https:\/\/www.nationaltransaction.com\/credit-card-merchant\/wp-json\/wp\/v2\/media?parent=4370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaltransaction.com\/credit-card-merchant\/wp-json\/wp\/v2\/categories?post=4370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaltransaction.com\/credit-card-merchant\/wp-json\/wp\/v2\/tags?post=4370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}