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 is a research analyst specializing in merchant services and credit card processing. He has nearly two decades of experience in card payment services, both as a former employee and as a professional business finance journalist. Phillip has written over 1,000 articles and reviews regarding payment services and the merchant account providers that market credit and debit card processing products and services to U.S. and Canadian businesses. 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.

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Phillip Parker