I am using e-onlinedate with an authorize.net account. I am supposed to be getting around 2.20% for my merchant account rate. Somehow e-online data is tacking on another 2% with Visa Rewards and other things. What would be the total NET rate that I should be getting with Visa? 4.4% seems ridiculous.
Your merchant agreement should list additional fees for Mid and Non-Qualified transactions, usually there is an increase in the discount rate (1-1.5%) and the transaction fee ($0.10), you tack that onto your Qualified Rate (2.20%), and you can track back the sales that are being downgraded. If you work with your processor, you might be able to get a portion of them to Qualify by submitting additional data, like AVS.
Rfv123, it sounds like you are getting charged for downgraded sales.
While not every merchant processor downgrades cards in the same way & the exact fees may vary (and sometimes there can be large differences between one processor and another), downgrades are a reality for any merchant account.
If you process Rewards cards, those are invariably going to be downgraded to a Non-Qual (or sometimes Mid-Qual) level depending on your processor and extra costs will be incurred.
This is necessary for a merchant processor to do because the costs are higher on Rewards cards to a processor due to the higher Visa/MasterCard Interchange costs that apply.
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Downgrades typically come from international cards, and cards that are classified as rewards cards. Cards that visa has classified as classic cards, do not downgrade. There are some ways to get around downgrades depending on the type of busienss and how your merchant account is setup.