Mid-Qual and Non-Qual Typically Means Hidden Fees

Part of my job is to review and analyze merchant account statements from various businesses around he country. When ever I see the categories of “mid qual” and “non-qual” I get a big smile on my face because I know my potential client is being taken advantage of.

Here is how these tiers work to increase the profit of the merchant account provider. Let’s say you have a retail business and your base rate is 1.90% + $.15 for all your card present swiped transactions. Your “mid-qual” rate is 2.75% +$.15. This category is typically for keyed in or card not present transactions and a swiped rewards card. Then you have a “non-qual” rate of 3.25% + $.15. This is for corporate or business cards and transactions that have problems . The chart below shows how lumping fees into these categories or tiers takes money out of your pocket.

Transaction Type	Tiers	Straight Pass Through
Keyed or Card Not Present	2.75%	2.21%
Swiped Rewards Card	2.75%	2.01%
Keyed In Rewards Card	3.25%	2.26%
Corporate Card	3.25%	2.36%
Visa EIRF	3.25%	2.66%

Can you see that by having categories you would be paying from .54% to .89% more than you need to? That can add up over year. I just finished an analysis yesterday that will end up saving the company $15,593.82 a year! How? By getting rid of the categories.

For more information on straight pass through click here .

So what are the key lessons to be learned from this post?

1. If you have “mid-qual” or “non-qual” categories at least consider changing your merchant account provider by getting a few proposals from their competitors.

2. When shopping for a merchant account pay attention to the base rate but also pay attention to the surcharges that are added to the base rate for transactions like the ones listed above.

If you would like me to analyze your merchant account fill out this form or e-mail me ; I would be happy to review your current account and let you know how much money I can save you each month.

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