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Merchant Account Query

Mid-Qualified Downgrade Surcharge, Mid-Qualified Per Item Surcharge

11:03 pm on Mar 31, 2009 (gmt 0)

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joined:Aug 12, 2008
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and Non-Qualified for the same

I requested for a quotation from the payment processor and along with the rate i would be eligible for these headings were mentioned in the quotation. I am wondering what they mean and how they add up?

The representative at the company told me that the non qualified downgrade surcharge is added to my normally applicable discount rate on international orders. For example if my rate for processing Visa/MC/Discover is 2.5% and the non qualified downgrade surcharge is 0.5% i would be paying 3% on international orders. Does this make sense?


6:43 pm on Apr 5, 2009 (gmt 0)

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That makes perfect sense.

Qualified transactions are considered your standard U.S. issued bank cards, address verification match, and settlement within 48 hours.

If your transaction does not fit into this criteria (as well as some other caveats) it can either downgrade to a mid qualified or non qualified transaction.

Mid qualified surcharges should be lower than non qualified surcharges. That's the whole reason for having them as a category.

Are you already accepting credit cards? Then you can have a rate reduction analysis in order to see which pricing schedule best suits you. If 80% of your transactions are downgraded than it doesn't matter what your qualified rate is.