Mid-Qualified Rate Definition

Mid-Qualified Rate Explained:

What is a Mid-Qualified Rate? The Mid-Qualified rate is most often found in three-tier merchant account pricing schemes, with the other two tiers referred to as “Qualified” and “Non-Qualified.” This fee is often referred to in the credit card processing industry as a “Mid-Qualified Transaction Fee” or “Mid-Qualified Downgrade Fee,” or just as “Mid-Qual.” This fee is actually a surcharge that is added on top of the base tier (Qualified Rate) for certain card types.

Generally, the Mid-Qualified surcharge costs merchants an additional 1% and is applied because of cards that have a rewards program such as miles or points. However, merchant account providers can define the fee tiers however they choose because there are no industry standards dictating how fees must be defined. One provider may define Mid-Qualified transactions very differently than another, which makes comparing provider costs nearly impossible.

Learn how everything thing you need to know about rates and how to get the lowest fees from any provider in “Fee Sweep: How to Get the Merchant Services You Need Without Getting Scammed.”

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About The Author

Phillip Parker

Phillip Parker is an independent digital payment consultant specializing U.S. and Canadian point-of-sale, ecommerce, and mobile payment acceptance. He has nearly two decades of experience in card payment services, both as a former merchant services sales representative and as a professional journalist covering the payments industry. Phillip created this website and has written over 1,000 articles regarding all things payments. He has also researched and published reviews about nearly every payment services provider and processor. In addition his contributions here, Phillip has also been quoted in several major publications such as The Los Angeles Times, INC Magazine, Miami Herald, Computer World, and numerous others.

If you need help with rate and fee negotiations, payment integrations, cost optimization, or provider selection, schedule a consultation here.

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