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Mastercard Merit III (In-Person)
This category encompasses most retail, in-person merchants
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 card that’s eligible for Merit III rates, along with the associated potential downgrade:
Qualifications
- Magnetic stripe, contactless, or chip data read, obtain customer’s signature.
- Authorize and settle within 1 day.
- Obtain and pass 1 valid electronic authorization.
- Authorization and settlement MCC must match.
- Authorization must be within 10% of settlement value. Beauty Salon (MCC 7230) have 25% tolerance. Taxicabs & Limousines (MCC 4121), Restaurants (MCC 5812), Fast Food Restaurants (MCC 5814) and Bars (MCC 5813) are exempt from transaction tolerance.
What are the rates?
See the below cards types which can qualify for Merit III rates
Merit III Core – 1.58% + $0.10
Downgrade (for keyed): Merit I, 1.89% + $0.10/txn
Downgrade (any other reason): Standard, 2.95% + $0.10/txn
Enhanced Merit III – 1.73% + $0.10
Downgrade (for keyed): Enhanced Merit I, 2.04% + $0.10/txn
Downgrade (any other reason): Standard, 2.95% + $0.10/txn
World Merit III – 1.77% + $0.10
Downgrade (for keyed): World Merit I, 2.05% + $0.10/txn
Downgrade (any other reason): Standard, 2.95% + $0.10/txn
World Elite Merit III – 2.20% + $0.10
Downgrade (for keyed): World Elite Merit I, 2.50% + $0.10/txn
Downgrade (any other reason): Standard, 3.25% + $0.10/txn
Merit III Debit – 1.05% + $0.15
Downgrade (for keyed): Merit I Debit, 1.60% + $0.15/txn
Downgrade (any other reason): Standard Debit, 1.90% + $0.25/txn
Merit III Prepaid – 1.05% + $0.15
Downgrade (for keyed): Merit I Prepaid, 1.76% + $0.20/txn
Downgrade (any other reason): Standard Prepaid, 1.90% + $0.25/txn
Regulated Debit – 0.05% + $0.22
Downgrade: This card type does not downgrade.
Almost all merchants are eligible. The only merchants who are Not Eligible:
Mail Order/Telephone Order (MCC 5960, 5962, 5964-5969)
Not Eligible for World / Elite: Travel Agent (MCC 4722) and Restaurants (MCC 5812)