Merchant Accounts and Rate Classifications

There are a total of seven (7) different types of merchant accounts and, for every type of account there are three (3) different types of rates that a merchant will be charged: Qualified, Mid-Qualified, and Non-Qualified. The specifications are determined by the card brands (Visa, MasterCard and Discover) and not by Merchant Warehouse, with the lowest rate being Qualified, followed by Mid-Qualified and then Non-Qualified, which would be assessed the highest rate. 

If the merchant type is retail, restaurant, wireless or lodging:

  • The Qualified rate is applied when a card is swiped and the batch is settled within 24 hours
  • If the merchant accepts reward cards or the batch is settled after 24 hours, then the Mid-Qualified rate is applied
  • If the merchant accepts business/corporate cards, government cards, or enhanced rewards card, or the batch is settled after 48 hours or transactions are manually keyed in then the Non-Qualified rate would apply. 


If the merchant type is keyed face-to-face (F2F) or mail order/telephone order (MOTO):

  • The Qualified rate is applied when a card is keyed and the batch is settled within 24 hours and the address verification service (AVS) and order number are entered
  • If the merchant accepts reward cards or the batch is settled after 24 hours, then the Mid-Qualified rate is applied
  • The Non-Qualified rate would be applied when a merchant accepts business/corporate cards, government cards, or enhanced rewards card, or the batch is settled after 48 hours or address verification service (AVS) and order number are not entered or a card is physically swiped. 


If the merchant type is Internet:

  • The Qualified rate is applied when a card is run through a shopping cart and the batch is settled within 24 hours and the address verification service (AVS) and order number are entered
  • If the merchant accepts reward cards or the batch is settled after 24 hours, then the Mid-Qualified rate is applied
  • The Non-Qualified rate would be applied when a merchant accepts business/corporate cards, government cards, or enhanced rewards card, or the batch is settled after 48 hours or address verification service (AVS) and order number are not entered or a card is manually keyed. 


If a merchant requests Interchange Plus pricing, they will be charged three sets of rates and fees.

  1. Fee directly from the issuing bank of the card
  2. Assessments charged by Visa, MasterCard and Discover
  3. Monthly fee from Merchant Warehouse, which includes but is not limited to monthly minimum, monthly service fee, per authorization fee, per transaction charge (small percentage of each transaction) and monthly wireless (if applicable)