The Difference Between Qualified, Mid-Qualified and Non-Qualified Credit Card Transactions
The Difference Between Qualified, Mid-Qualified and Non-Qualified Credit Card Transactions
Retail Merchants
In the realm of credit card processing a "Retail Merchant" is defined as a merchant who does over 70% of their transactions swiped through a credit card terminal at the point of sale/transaction.
Qualified Transaction (also referred to as the Swiped Rate)
- In general terms, this is the rate charged per each transaction when the card is physically swiped through a credit card terminal.
Qualified Transaction Conditions
* The credit/debit card is present at the time of the transaction, the card's full magnetic stripe is read by the terminal, and a signature is obtained from the cardholder at the time of the transaction.
*One electronic authorization request is made per transaction and the transaction/purchase date is equal to the authorization date. The authorization response data must also be included in the transaction settlement.
*The authorization transaction amount must match the settled (deposit) transaction amount.
*The card that is used is not a commercial (business) credit card
*The transaction must be authorized and settled under a standard retail industry code.
*The transaction must be electronically deposited (batch transmitted) no later than 1 day from transaction/purchase/authorization date.
Mid-Qualified Transaction
- In general terms this is the rate charged when a transaction is manually keyed-in using AVS - Address Verification Service (card #, expiration date, address, zip code and CVV code all match)
Mid-Qualified Transaction Conditions
*One or more of the Qualified conditions were not met
Non-Qualified Transaction
- In general terms this is the rate charged when manually keying-in a transaction without using AVS.
Non-Qualified Transaction Conditions
*One or more of the Qualified conditions were not met, or:
*The transaction was electronically deposited (batch transmitted) greater than 1 day from the authorization date, or:
*The card that was used was a commercial card without submitting the additional data (see Commercial Card section below), or:
*The transaction was not electronically authorized, or the authorization response data was not included in the transaction settlement.
Mail Order/Telephone Order (MOTO) Merchants and Internet (Card not Present) Merchant Accounts
In the realm of credit card processing a "Moto Merchant" is defined as a merchant who manually keys in over 50% of their transactions and an Internet Merchant is one who accepts transactions over the Internet via an E-Commerce store with an online gateway or who submits transactions manually through a Virtual Terminal.
Qualified Transaction Conditions (For MOTO/Internet merchants the Mid-Qualified Rate is essentially the Qualified rate as these merchants never swipe a credit card through a terminal)
*One electronic authorization request is made per transaction and the transaction date is equal to the shipping date. The authorization response data must also be included in the settled transaction.
*The authorization request message must include Address Verification Service (AVS), which verifies the street address and the zip code of the card holder. NOTE: The only way this happens is if your software is set up to do this, or, if you are using a terminal, then if you capture the AVS information at the time of keying in your transaction.
*The transaction/shipping date must be within 7 calendar days of authorization date.
*The settled transaction amount must equal the authorized amount.
*The settled transaction must include the business's customer service telephone number, order number, and total authorized amount.
*Additional data (sales tax and customer code) is required in the settled transaction on all commercial (business) cards at non-Travel & Entertainment (T&E) locations.
*The transaction is electronically deposited (batch transmitted) on or 1 day after authorization date.
Non-Qualified Transaction Conditions
*One or more of the Qualified or Partially Qualified conditions were not met, or:
*The transaction was electronically deposited (batch transmitted) greater than 1 day from transaction/shipping/authorization date, or:
*Commercial Card without the additional data (see Commercial Card section below), or:
*The VISA Infinite card was accepted, or:
*The transaction was not electronically authorized or the authorization response data was not included in the settled transaction.
Commercial Card Additional Data
Visa
*Purchasing cards: Sales Tax and Customer Code (supplied by cardholder at point of sale)
*Corporate and Business cards: Sales Tax
MasterCard
*Corporate Data Rate II (Purchasing cards): Sales Tax and customer Code (supplied by cardholder at point of sale)
*Corporate Data Rate II (Business and Corporate cards): Sales Tax
*International Corporate Purchasing Data Rate II: Sales Tax and Customer Code (supplied by cardholder at point of sale)
*The following information must also be provided: Merchant's Federal Tax ID; Merchant Incorporation Status; and Owner's full name if the merchant is a sole proprietor.
The Difference Between Qualified MidQualified and NonQualified Credit Card Transactions - To learn more about this author, visit Drew Goldbaum's Website.
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(Please note that the requirements explained below are subject to change)
Retail Merchants
In the realm of credit card processing a "Retail Merchant" is defined as a merchant who does over 70% of their transactions swiped through a credit card terminal at the point of sale/transaction.
Qualified Transaction (also referred to as the Swiped Rate)
- In general terms, this is the rate charged per each transaction when the card is physically swiped through a credit card terminal.
Qualified Transaction Conditions
* The credit/debit card is present at the time of the transaction, the card's full magnetic stripe is read by the terminal, and a signature is obtained from the cardholder at the time of the transaction.
*One electronic authorization request is made per transaction and the transaction/purchase date is equal to the authorization date. The authorization response data must also be included in the transaction settlement.
*The authorization transaction amount must match the settled (deposit) transaction amount.
*The card that is used is not a commercial (business) credit card
*The transaction must be authorized and settled under a standard retail industry code.
*The transaction must be electronically deposited (batch transmitted) no later than 1 day from transaction/purchase/authorization date.
Mid-Qualified Transaction
- In general terms this is the rate charged when a transaction is manually keyed-in using AVS - Address Verification Service (card #, expiration date, address, zip code and CVV code all match)
Mid-Qualified Transaction Conditions
*One or more of the Qualified conditions were not met
Non-Qualified Transaction
- In general terms this is the rate charged when manually keying-in a transaction without using AVS.
Non-Qualified Transaction Conditions
*One or more of the Qualified conditions were not met, or:
*The transaction was electronically deposited (batch transmitted) greater than 1 day from the authorization date, or:
*The card that was used was a commercial card without submitting the additional data (see Commercial Card section below), or:
*The transaction was not electronically authorized, or the authorization response data was not included in the transaction settlement.
Mail Order/Telephone Order (MOTO) Merchants and Internet (Card not Present) Merchant Accounts
In the realm of credit card processing a "Moto Merchant" is defined as a merchant who manually keys in over 50% of their transactions and an Internet Merchant is one who accepts transactions over the Internet via an E-Commerce store with an online gateway or who submits transactions manually through a Virtual Terminal.
Qualified Transaction Conditions (For MOTO/Internet merchants the Mid-Qualified Rate is essentially the Qualified rate as these merchants never swipe a credit card through a terminal)
*One electronic authorization request is made per transaction and the transaction date is equal to the shipping date. The authorization response data must also be included in the settled transaction.
*The authorization request message must include Address Verification Service (AVS), which verifies the street address and the zip code of the card holder. NOTE: The only way this happens is if your software is set up to do this, or, if you are using a terminal, then if you capture the AVS information at the time of keying in your transaction.
*The transaction/shipping date must be within 7 calendar days of authorization date.
*The settled transaction amount must equal the authorized amount.
*The settled transaction must include the business's customer service telephone number, order number, and total authorized amount.
*Additional data (sales tax and customer code) is required in the settled transaction on all commercial (business) cards at non-Travel & Entertainment (T&E) locations.
*The transaction is electronically deposited (batch transmitted) on or 1 day after authorization date.
Non-Qualified Transaction Conditions
*One or more of the Qualified or Partially Qualified conditions were not met, or:
*The transaction was electronically deposited (batch transmitted) greater than 1 day from transaction/shipping/authorization date, or:
*Commercial Card without the additional data (see Commercial Card section below), or:
*The VISA Infinite card was accepted, or:
*The transaction was not electronically authorized or the authorization response data was not included in the settled transaction.
Commercial Card Additional Data
Visa
*Purchasing cards: Sales Tax and Customer Code (supplied by cardholder at point of sale)
*Corporate and Business cards: Sales Tax
MasterCard
*Corporate Data Rate II (Purchasing cards): Sales Tax and customer Code (supplied by cardholder at point of sale)
*Corporate Data Rate II (Business and Corporate cards): Sales Tax
*International Corporate Purchasing Data Rate II: Sales Tax and Customer Code (supplied by cardholder at point of sale)
*The following information must also be provided: Merchant's Federal Tax ID; Merchant Incorporation Status; and Owner's full name if the merchant is a sole proprietor.
The Difference Between Qualified MidQualified and NonQualified Credit Card Transactions - To learn more about this author, visit Drew Goldbaum's Website.
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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