There are seven merchant account types or categories, and which one your business falls into has implications for your pricing if you are priced using a tiered approach. The seven categories are retail, restaurant, wireless, lodging, keyed face-to-face (F2F), mail order/telephone order (MOTO), or Internet. Here's how this affects tiered pricing:
Retail, Restaurant, Wireless, or Lodging
- The Qualified (lowest rate) applies to transactions where the card is physically swiped and the batch is settled less than 24 hours later.
- The Mid-Qualified rate applies to reward cards and batches settled in more than 24 hours.
- The Non-Qualified (highest rate) applies to corporate or government cards, enhanced reward cards, manually keyed transactions, and batches settled after 48 hours.
Face-to-Face or Mail Order/Telephone Order
- Qualified transactions are those in which the card is keyed in, the batch settles within 24 hours, and the AVS (address verification service) and order number are both entered.
- Mid-Qualified transactions are those involving reward cards and batches settled in more than 24 hours.
- Non-Qualified transactions are those involving corporate or government cards, enhanced reward cards, physically swiped transactions, transactions where the AVS or order number aren't entered, or batches settled after 48 hours.
- A Qualified transaction occurs when the card is run through an online shopping cart, the batch settles within 24 hours, and the AVS (address verification service) and order number are both entered.
- A Mid-Qualified transaction occurs when a reward card is used or the batch settles in more than 24 hours.
- A Non-Qualified transaction occurs when a corporate, government, or enhanced reward card is used, the AVS or order number is missing, or the batch is settled after 48 hours.