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07-Oct-2017 23:18

Like tiered pricing, this model consists of the processor's markup and actual processing costs, which is the interchange rate and the card-brand fee.

The difference is that with this pricing model, the processor tells you how much the markup actually is.

If you choose to work with a processor that puts you on a tiered pricing plan, it's important to understand what the tiers are and which types of cards and transaction methods are included in each.

Three-tiered plans are the most common, with qualified, mid-qualified and non-qualified cards; these tiers are often referred to as qual, mid-qual and non-qual.

You're probably looking for the most cost-effective processing option for your business.

For this reason, the costs and fees of accepting credit cards are likely the first factors you evaluate when looking for a mobile credit card processor.

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Most processors also consider cards that are manually keyed-in as non-qualified transactions.If you sell large-ticket items, pricing with a lower percentage rate is probably going to be more cost effective, even with the addition of the per-transaction fee.

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