What is the difference between a qualified and non-qualified credit card transaction?

A qualified card is whenever the customer’s credit card is in accordance with the processor’s rules. Unless your credit card processing account is different, you’ll find that all payments over the Internet or phone are considered non-qualified and force you to pay a higher rate for the transaction.

What is a non-qualified transaction?

Non-Qualified Transactions means: (i) any Transaction submitted for processing more than 48 hours past the time the Authorization occurred; (ii) any Transaction missing required data; and (iii) any Transaction categorized as such by the processor designated by Bank to settle Transactions with the Associations. Sample 2.

What does non-qualified mean on credit card transaction?

The non-qualified rate is usually the highest percentage rate a merchant will be charged whenever they accept a credit card. A consumer credit card is keyed into a credit card terminal instead of being swiped and address verification is not performed.

What is a visa non-qualified consumer credit?

Visa and MasterCard assess a fee on each credit card sale. Sales that are made with higher cost, nonconsumer cards, or those that do not meet Visa and MasterCard’s conditions for lower risk, receive an additional ‘nonqualified’ surcharge rate of 1\% on top of the qualified rate.

What is qualified credit?

Prequalification means the creditor has done at least a basic review of your creditworthiness to determine if you’re likely to qualify for a loan or credit card. For some prequalifications, lenders will check your credit through a soft inquiry—the type of inquiry that doesn’t impact your credit scores.

What is a non qualification fee at a bank?

The Non-Qualified surcharge is the most expensive of the tiers and can cost merchants an average of 1.5\% -2.5\% on top of the Qualified rate. Generally, merchant account providers apply Non-Qualified fees because of the customer used a corporate card, foreign credit card or a certain rewards card.

What is a non qualifying fee?

What is a qualified rate?

A qualified rate is the percentage rate a merchant will be charged whenever they accept a regular consumer credit card and process it in a manner defined as “standard” by their merchant account provider using an approved credit card processing solution.

What is a non-qualified surcharge?

What is qualified rate?

Which transactions will be qualified or non-qualified?

Processors’ sales people tend to give very general answers when asked which transactions will be qualified, mid-qualified or non-qualified. For example, it is typical for a sales person to say something like, “Reward cards and keyed-in transactions are considered mid-qualified, and business credit cards are non-qualified.”

What is a non-qualified credit card?

There is no such thing as a non-qualified credit card; there are only non-qualified transactions, and individual credit card processors decide which transactions are considered non-qualified based on how interchange categories are routed under a tiered pricing model.

What are qualified and non-qualified interchange rates?

Qualified, mid-qualified and non-qualified rates are a processor’s way of classifying Visa and MasterCard’s interchange rates. Interchange rates are never non-qualified; they are simply classified as such by various processors.

What’s wrong with qualified / non-qualified pricing?

There is nothing inherently wrong with qualified / non-qualified pricing, nor is a quote using that pricing model immediately suspect. It does mean that you must be far more vigilant though.