The Merchant Processing Guru Tip#3: Tiered structure vs True Interchange… There are a few different ways you could be set up for your credit card processing. If you are set up the traditional way with a Qualified a Mid-qualified & a Non-qualified rate structure then chances are you are paying too much for your processing. This is called a tiered rate structure and there are 3 different tiered structures; A 2 tiered structure which is used for MOTO/Internet accounts where none, or very few of your transactions are swiped and a 3 & 4 tiered structure which are used for retail/swipe accounts.
Even if you are set up with what looks like a straight pass-through/interchange rate structure, you could actually have a tiered structure in disguise. I am finding more and more accounts that are set up like this these days and it is quite disturbing to see how these organizations feel that they need to deceive their merchants even in this area.
Fact of the matter is that, without having your statement analyzed by an expert you cannot know for sure if you are set up in the most advantageous way for you and your business. Next I will be talking about Interchange and how, using true interchange I have set up all of my merchant’s accounts to benefit them and keep their costs to a minimum.