Mid-Qualified Rate

A Mid-Qualified rate refers to the rate that is charged to merchant accounts through credit card processors. It is the middle tier in three-tier pricing schemes for credit card processors, with all three tiers being: Qualified, Mid-Qualified and Non-Qualified. Mid-Qualified rates can also be refered to as “Mid-Qualified Transaction Fee,” “Mid-Qualified Downgrade Fee” and “Mid-Qual.”

A Mid-Qualified Rate adds a surcharge to the base tier (Qualified Rate) for certain credit card types. Because some credit cards have a rewards program that earns customers points or miles, merchants typically pay an extra 1% when processing. However, there are no industry standards for how much the additional rate is, so one provider may define Mid-Qualified transactions very differently from another. Since merchant account providers define the tier fees themselves, it can make finding the lowest rates nearly impossible. To find the best pricing fees, start by finding providers you like based on other reasons and comparing their pricing schemes after.

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