Tiered Pricing
Simplified rates. Streamlined statements.
Tiered pricing groups all transactions into three categories — Qualified, Mid-Qualified, and Non-Qualified — each with a single, predetermined rate. This simplifies your monthly statement and makes budgeting more straightforward.
How It Works
Your processor assigns each transaction to a tier based on criteria like card type and how it was processed. Qualified transactions (standard swiped/dipped cards) get the lowest rate, Mid-Qualified (keyed-in or rewards cards) fall in the middle, and Non-Qualified (corporate or international cards) carry the highest rate.
Advantages
- Easy-to-read monthly statements with three simple rate tiers
- Predictable base rate for standard transactions
- Simple to understand without technical knowledge
- Good for businesses with consistent transaction types
- Quick onboarding and setup
- Clear budgeting for qualified transaction volumes
Things to Consider
- Less transparency into actual interchange costs
- Non-qualified surcharges can be higher than interchange plus
- Tier qualification criteria may vary by processor
Best For
Small retail stores
Quick-service restaurants
Professional services
Low-volume businesses
Frequently Asked Questions
What determines which tier my transaction falls into?
Tier assignment depends on the card type used, how the transaction was processed (swiped vs. keyed), and whether all required data was captured. Standard debit and credit swipes typically qualify for the lowest tier.
Can I influence which tier my transactions land in?
Yes — using chip readers or contactless terminals, settling batches daily, and capturing all required data fields helps more transactions qualify at the lowest rate.
Is tiered pricing more expensive than interchange plus?
It depends on your transaction mix. Businesses with mostly qualified transactions may see similar costs, but those with many rewards or corporate cards often pay more under tiered pricing.
Ready to Get Started?
Contact our team to learn how Tiered Pricing can work for your business. We will tailor a solution that fits your needs.