There are three rate qualification categories in a retail processing environment:

• Qualified is the lowest retail processing rate category. In order for a transaction to qualify for this category, the credit card must be swiped through the terminal, the contents of the magnetic stripe transmitted, and an authorization number received. The transaction must also be settled or batched out of the terminal within 24 hours of the authorization.
  
• Mid-qualified is the lowest rate category in the retail processing environment for which key-entered transactions can qualify. This category requires that the billing address of the cardholder be verified with a match of their zip code. Once again, an authorization number must be received and the transaction settled or batched out of the terminal within 24 hours of that authorization.
  
• Non-qualified is the highest rate category in the retail processing environment. Generally speaking, this rate applies to key-entered transactions where the address is not verified with a zip code match or transactions that are not settled or batched out of the terminal within 24 hours of their authorization.

Card Not Present

In today’s non-traditional retail environments, the credit card is seldom, if ever, present, and therefore processed by hand keying the number into a terminal or some other point-of-sale device. That number is typically taken over the phone, through the mail, or over the Internet. There are two rate qualification categories in a mail order/telephone order processing environment – qualified and non-qualified.

• Qualified (also known as “Mid Qualified”) is the lowest mail order/telephone order processing rate category. The category requires a zip code verification attempt, an authorization number, and a settlement or batch within 24 hours of the authorization.
  
• Non-qualified is the highest mail order/telephone order processing rate category. The rate applies to transactions where zip code verification is not attempted or when transactions are not settled or batched out of the terminal within 24 hours of their authorization.

Special Exceptions

Rewards Cards – The best category for which Visa Signature and MasterCard World Cards can qualify is the non-qualified category.

Foreign Cards – Foreign card transactions always qualify at the non-qualified rate category.

Voice Approved Cards – Anytime a transaction is authorized by a call center and later hand keyed into the terminal, it will go to the non-qualified rate category.