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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Hi, I’m Phillip and I’m disgusted by the state of credit card processing in the U.S. and abroad. I believe that the industry has been overrun by people who engage in fraud and deception in order to steal money from hard working business owners. I’ve made it my mission to expose the companies and individuals who engage in predatory marketing, pricing, and contracts, or just provide terrible service. Along with uncovering the bad guys, I’ve also discovered the good guys who do stand out from the status quo. CPO is a website where you will find ratings and reviews of these companies along with advice on how to save money and which service providers consider. Together we can move the industry in a positive direction. If you would like to help support my work, please checkout “Fee Sweep” my eGuide to getting the lowest possible fees when accepting card payments. If you haven’t heard of “interchange” this advice will save you hundreds, even thousands, in processing fees.

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