Tiered pricing splits the fees you pay per transaction into three tiers, which are based on how you process the card and the associated risk of the transaction. The credit card processor assigns the transaction into one of the following tiers:
- Qualified – lowest risk and lowest cost per transaction
- Mid-qualified
- Non-qualified – highest risk and highest cost per transaction
If you run a transaction incorrectly, or it has a higher risk associated with it, the transaction is downgraded to a mid-qualified or non-qualified tier.… Read More “How does tiered pricing work?”