Advanced Merchant Account Services That Can Save You cheddar

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david_6366
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Advanced Merchant Account Services That Can Save You cheddar

Post by david_6366 »

Until recently three tier pricing structures dominated the processing landscape. Fierce market competition and unfavorable economic conditions now make it easy for virtually any merchant to qualify for this type of pricing method.

Three tier pricing consists of a qualified, mid qualified and non qualified rate. The reason you want to avoid this pricing method is that many of the transactions that were once considered qualified now bucket into mid and non qualified. The popularity of rewards cards haven't helped this either. More merchants are using rewards cards to earn cash, gas points, airline miles etc. Reward card transactions will automatically downgrade to mid or non qualified.

Unfortunately, most payment processing sales jobs only pay attention to the qualified rate which has allowed merchant service providers to build expensive margins into their mid and non qualified rates.
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