Are There Mid and Non Qualified Rates in Interchange Plus Pricing?

Many Tiered pricing programs employ a three tiered pricing structure, with transactions being charged at one of three rates: Qualified, Mid Qualified, and Non Qualified. These Tiers are based on the Visa, MasterCard, and Discover Interchange Rates. In most retail Tiered programs, Qualified transactions cover swiped non-rewards credit and debit card sales, a Mid Qualified rate will be applied to keyed non-rewards credit and debit, and also to some rewards cards, and Non Qualified rates are charged to downgrades and commercial/business/purchasing/corporate cards.

Interchange Plus pricing does not employ Qualified, Mid Qualified, or Non Qualified tiers. Instead, the exact Visa, MasterCard, and Discover Interchange Fees are passed through to the merchant along with a fixed mark-up for Processing Services. Merchants will still pay a higher cost for keyed, rewards, downgrades, etc., because the Interchange Rates applied to those transactions are higher than the Interchange Fees for swiped credit and debit sales, but the uniform mark up for Processing Services is usually a lower cost option than the higher margins built into Tiered Mid and Non Qualified Rates.

Burlington Bank Card strives to provide our merchants with secure and reliable interchange plus merchant payment processing, transparent pricing, and one-on-one personal service.

Please call 1-800-758-1002 or contact us to learn more about Interchange Plus Credit Card Processing, or get a quote for an Interchange Plus Merchant Account.