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    0 Replies Latest reply on Nov 17, 2010 12:33 AM by surepayguy

    Interchange Vs. 3 Tier Pricing

      All business owners should be aware of how the two most common merchant service cost structures work. Visa and MasterCard have over 400 cost categories in a system known as Interchange. A full breakdown can be found here:
      On Interchange pricing, your merchant service provider will charge the true cost of the transaction as dictated by interchange PLUS an additional percentage.

      3 Tier Pricing is a system created to simplify the vast array of cost categories into 3 averaged tiers. Many business owners recognize these tiers as Qualified, Mid Qualified, and Non Qualified. The Qualified Tier is generally assessed for swiped face to face card transactions. Mid Qualified carries a surcharge and typically encompasses transactions keyed into a terminal, over the phone, rewards/sky miles cards, and internet transactions. Corporate cards and international cards most commonly make up the Non-Qualified Category.

      It is important to know the difference and difficult to compare the two against each other. There is an independent article about this online here:
      that could probably help with further detail.

      If anyone has any questions on the intricacies of processing, ask away!