Tiered Rate Processing | Clear and Easy To Apply

Tiered rate pricing is one of the more common methods for payment processing pricing in the United States. It works by defining tiered categories and levels, each with its own predefined rate, dependent on the type of card used and the way the transactions are processed. Depending on the transaction qualification, the transaction is then assigned the associated rate tied to the standards and requirements of tiers, whether that is the Qualified Rate, Mid-Qualified Rate or Non-Qualified Rate, and then is priced accordingly.

Qualified Rate:

The qualified rate represents the lowest tier and is applied to transactions that meet specific criteria set by the merchant services provider. These criteria typically include swiped transactions using a standard card. Qualified rates are usually the most affordable, offering competitive pricing for businesses with a high volume of straightforward transactions.

Mid-Qualified Rate:

The mid-qualified rate applies to transactions that fall outside the qualified tier due to certain factors. These factors might include manually entering the card details, processing rewards cards, or the absence of address verification. While the mid-qualified rate is slightly higher than the qualified rate, it still offers reasonable rates for transactions that don't meet all the criteria for the qualified tier.

Non-Qualified Rate:

The non-qualified rate represents the highest tier in tiered rate pricing. It is applied to transactions that are deemed riskier or less favorable for various reasons, such as processing corporate cards, international cards, or transactions without proper address verification. Non-qualified rates are typically higher than the other tiers due to the increased risk associated with these types of transactions.

Benefits of Tiered Rate

Tiered rate pricing offers merchants an effective way to optimize payment processing costs while maintaining flexibility and adaptability of your payments.. By categorizing transactions into tiers and assigning appropriate rates, businesses can gain control over their processing fees and make informed decisions that align with their budgetary goals. Business owners already have a million things that they have to take account of, so simplifying their payments and adhering to accepted tiers and qualifications, lets them focus their time and energy back onto their customers.

Why should I use Tiered Rate Pricing?

Tiered rate pricing offers merchants an effective way to optimize payment processing costs while maintaining flexibility and adaptability of your payments. By categorizing transactions into tiers and assigning appropriate rates, businesses can gain control over their processing fees and make informed decisions that align with their budgetary goals. Business owners already have a million things that they have to take account of, so simplifying their payments and adhering to accepted tiers and qualifications, lets them focus their time and energy back onto their customers.”

Cost Optimization:

Tiered rate pricing enables merchants to optimize their payment processing costs by incentivizing desirable transaction types. By focusing on transactions that fall within the qualified tier, businesses can minimize the overall fees paid for processing credit card payments by optimizing the types of cards and transactions that are accepted.

Flexibility and Scalability:

Tiered rate pricing provides flexibility for businesses of all sizes. Whether you are a small startup or a large enterprise, the tiered rate model can be tailored to accommodate your transaction volume and specific business needs. As your business grows, this model allows for scalability, ensuring that the payment processing costs remain manageable.

Simplicity in Pricing Comparison:

With tiered rate pricing, comparing pricing across different merchant services providers becomes more straightforward. Since the rates are clearly defined within each tier, merchants can easily evaluate and compare offers from various providers to find the most competitive rates that align with their transaction profile.

CLEAR AND EASY
to understand Tiered Rate Processing

Qualified Rate:

Mid-Qualified Rate:

Non-Qualified Rate:

Benefits of Tiered Rate

It’s time for you to take back and own your payments.