To qualify for the below restaurant rates, merchants must be classified as a restaurant or quick-service merchant (MCC of 5812 or 5814). Quick-serve merchants will only be eligible for debit sales within this rate classification. Below are the basic qualifications, plus you’ll see each type of card that’s eligible for restaurant rates, [...]
Because lodging and auto-rental merchants have unique needs, there’s a special rate category designed for them. These merchants take extended authorizations – meaning the card may be authorized weeks before the sale is finalized. Similarly, final amounts of the sale are often different from the original authorization. For “regular” merchants, this would [...]
The “Merit I” category is for key-entry and E-Commerce Mastercard sales that meet include AVS and are settled within 1-2 days. Barring a few exceptions, most merchants are able to receive these interchange rates. Qualifications Key-entered or E-Commerce transaction. Authorize and settle within 1 day (keyed) or 2 days (E-Commerce). Obtain and pass 1 valid electronic authorization. Authorization and [...]
Mastercard allows for lower debit card rates on low-ticket sales. There are many qualifying merchant types, typically relating to industries that cater to small-ticket transactions. Fast food, taxis, parking lots, video rentals, convenience stores, theaters, newsstands, car washes, copy centers, laundry services, and bus lines are all eligible. Small-ticket rates have [...]
The “Merit III” or “Merit 3” category encompasses traditional consumer credit cards, as opposed to business/purchasing cards. Barring a few exceptions, most merchants are able to receive this interchange rate, as it represents the best qualification level for in-person sales. Below are the basic qualifications, plus you’ll see each type of [...]
Mastercard has a special “Convenience” rate program designed for a few specific types of merchants. You must be categorized as a quick-service food establishment, movie theater, taxicab/limousine, or convenience store to gain access to these rates. The intention of this program is to give lower rates to merchants who regularly process [...]
To set the stage – there are two distinct portions of any credit card transaction. The first is known as the authorization, which happens in real-time, when you swipe/dip/key the card into your system. You’ll receive a real-time response from the card-issuing bank of “approved” or “declined”. The second step [...]
Let’s perform a few sample transaction so you can see how all of this works. In these example, we’ll use common consumer card types that retailers accept. (See Visa Consumer rates and Mastercard consumer rates). Bear in mind that specific industries will be subject to different rates, but these are [...]
It’s not that tiered pricing is inherently “bad”. It’s just that tiered pricing models typically don’t disclose the underlying interchange rates – which incentivizes merchant service providers to overcharge their merchants. If you’re on tiered pricing, it doesn’t necessarily mean that you’re getting an unfair deal. It just means that [...]
Visa CPS (or Custom Payment Service) outlines the criteria your transactions need to meet in order to gain access to the lowest possible interchange rates. To help protect merchants and consumers, Visa has defined several criteria that merchants must meet when submitting transactions through the network. These criteria are designed to help [...]