What’s a Mid-Qualified Rate?

Discussing mid-qualified rates is a bit of a moot point when it comes to what you’ll need to know when you sign up for the Authorize.net merchant account resellers program, but it’s information that doesn’t hurt to have. To steal and savagely twist someone else’s quote: you can never be too smart.

The mid-qualified credit card processing rate is exactly what it sounds like—a rate that falls between the lower qualified rate and the higher, non-qualified rate. The reason it’s a bit extraneous to the discussion is because as an Authorize.net merchant, your new and small business clients receive a simplified, two-tier billing rate of qualified and non-qualified.

Why Do Some Merchant Providers Charge Mid-Qualified Rates?
It’s certainly not done to be cruel. Sometimes the reason certain credit card transactions fall into the mid-rate tier are preventable, sometimes not.

  • A card is keyed in to the merchant’s terminal, instead of being swiped. This can happen for a number of reasons—either the magnetic strip is worn or the card isn’t physically present.
  • A customer uses a rewards or business card. These types of cards carry higher processing rates for the merchant account provider, so the added cost is passed down to the merchant.
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