What are “mid” and “non” qualified fees and what causes them to occur? |
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“Mid” and “Non” qualified fees are the additional interchange fees that the merchant acquirer must pay to Visa and MasterCard on cards that do not qualify for the best (lowest) interchange rates. These fees can be due to a variety of factors such as if the credit/debit card number was manually entered into a terminal or came as a result of a mail/telephone or internet order. Another cause for the mid and non qualified rates is the type of card which was presented during the sale. For instance, if a “Rewards or a corporate/purchasing/business card” was utilized by the cardholder, then the transaction is going to qualify at the “Mid” or “Non” qualified rates. Additionally, if the merchant delays in settling his transactions more than 24 hours after the transaction occurred then those transactions will qualify at the “Mid” and Non” qualified rates.
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