How to Avoid Downgrades Alabama

Whether you are currently accepting credit cards, or plan on doing so, it is important to know how to save money by avoiding downgrades whenever possible.

Local Companies

Merchant Warehouse
866-599-3217
Mobile, AL
Merchant Warehouse
866-599-3217
Birmingham, AL
Merchant Warehouse
866-599-3217
Huntsville, AL
FFUSA
256-226-2181
11575 S Memorial Parkway
Huntsville, AL
Central Payment Corporation
(205) 914-0370
Serving Birmingham area
Birmingham, AL
Merchant Warehouse
866-599-3217
Montgomery, AL
1st Franklin Financial
(256) 332-5161
114 Jackson
Russellville, AL
Morgan Keegan Investor
(334) 222-1564
200 Church St
Andalusia, AL
Wells Fargo Financial
(334) 290-1970
2138 Cobbs Ford Rd
Prattville, AL
Check 'n Go
(205) 426-4681
501 W Town Plaz
Bessemer, AL

Written By: Lisah, Merchant Warehouse Customer Service

Whether you are currently accepting credit cards, or plan on doing so, it is important to know how to save money by avoiding downgrades whenever possible.

A downgrade simply means that you are being charged a rate increase because the type of card your customer is using has a higher processing cost or because a transaction was processed incorrectly by you, the merchant.

You can't always prevent downgrades from happening, but this article will show you what you can do to keep your transaction costs as low as possible.

As an example, for a Retail or "Swiped" Account where the customer is handing over their card for processing, a transaction will get the Qualified Discount Rate (lowest rate possible) only if the card is swiped, the cardholder is present, and the card is a standard consumer credit card. If any of these criteria are changed, the account will "downgrade" to either the "Mid" or "Non" qualified level. These levels are each associated with a greater cost of processing.

Here is a more detailed description of what can be done to avoid many downgrades, and also what happens if certain criteria are not met.

Retail/Card Swiped Accounts

Qualified Rate

The Qualified Discount Rate is charged when all of the following occur:

  • Standard consumer credit card is used
  • Card is swiped accurately and data properly obtained
  • The customer's signature is captured
  • The transaction is "Batched" or "Settled" within 24 hours

    Mid-Qualified

    The Partial/Mid Qualified rate will be applied when any of the following occur:
  • The card info is manually entered, or "keyed" & all AVS info is entered
  • The consumer uses a Rewards card
  • Transactions are not settled/batched within 24 hours

    Non-Qualified

    If any of the following situations occur, a Non-Qualified rate will be applied to the transaction.
  • Card is manually entered with no AVS info entered
  • The consumer uses a Corporate, Government or International card
  • Authorization code is manually keyed in to your processing terminal.
  • Transactions are not settled/batched within 48 hours

    Keyed "MOTO" or Internet Accounts

    For these types of accounts, the merchant manually enters credit card information into a credit card terminal or software after the order is placed or is collected through an online payment gateway.

    Qualified Rate

    The Qualified Discount Rate is charged when all of the following occur:
  • Standard consumer credit cards are used
  • All required Credit Card information is entered including AVS (address verification) for VISAr transactions.
  • The transactions are "Batched" or "Settled" within 24 hours
  • The order/invoice Number entered

    Mid-Qualified

    For MOTO/Internet Accounts, rates usually fall directly to Non-Qualified, not mid-qualify, but these are the possible reasons why a merchant may be charged a Mid-Qualified Rate
  • AVS information is not entered
  • Transaction/Batch is not settled within 24 hours
  • Card is a Rewards or Business card

    Non-Qualified

    If any of the following situations occur, a Non-Qualified rate will be applied to the transaction.
  • Any of the required card or transaction information is not entered
  • The consumer uses a Corporate, Government or International card
  • Authorization code is manually keyed in to your processing terminal.
  • Transactions are not settled/batched within 48 hours

    As you can see, there are many factors involved in determining which rates are assessed to your transactions. Follow the tips above, and you will keep your processing rates as low as possible. A Merchant Warehouse representative is always available to answer any questions or concerns you may have.
  • Featured Local Company

    Merchant Warehouse

    866-599-3217
    Mobile, AL

    Regional Articles
    - How to Avoid Downgrades Alabaster AL
    - How to Avoid Downgrades Albertville AL
    - How to Avoid Downgrades Alexander City AL
    - How to Avoid Downgrades Andalusia AL
    - How to Avoid Downgrades Anniston AL
    - How to Avoid Downgrades Arab AL
    - How to Avoid Downgrades Athens AL
    - How to Avoid Downgrades Atmore AL
    - How to Avoid Downgrades Auburn AL
    - How to Avoid Downgrades Bay Minette AL
    - How to Avoid Downgrades Bessemer AL
    - How to Avoid Downgrades Birmingham AL
    - How to Avoid Downgrades Boaz AL
    - How to Avoid Downgrades Brewton AL
    - How to Avoid Downgrades Clanton AL
    - How to Avoid Downgrades Cullman AL
    - How to Avoid Downgrades Daphne AL
    - How to Avoid Downgrades Decatur AL
    - How to Avoid Downgrades Dothan AL
    - How to Avoid Downgrades Enterprise AL
    - How to Avoid Downgrades Eufaula AL
    - How to Avoid Downgrades Fairhope AL
    - How to Avoid Downgrades Florence AL
    - How to Avoid Downgrades Foley AL
    - How to Avoid Downgrades Fort Payne AL
    - How to Avoid Downgrades Gadsden AL
    - How to Avoid Downgrades Guntersville AL
    - How to Avoid Downgrades Haleyville AL
    - How to Avoid Downgrades Hartselle AL
    - How to Avoid Downgrades Huntsville AL
    - How to Avoid Downgrades Jasper AL
    - How to Avoid Downgrades Madison AL
    - How to Avoid Downgrades Mobile AL
    - How to Avoid Downgrades Montevallo AL
    - How to Avoid Downgrades Montgomery AL
    - How to Avoid Downgrades Muscle Shoals AL
    - How to Avoid Downgrades Northport AL
    - How to Avoid Downgrades Opelika AL
    - How to Avoid Downgrades Pelham AL
    - How to Avoid Downgrades Pell City AL
    - How to Avoid Downgrades Phenix City AL
    - How to Avoid Downgrades Pinson AL
    - How to Avoid Downgrades Prattville AL
    - How to Avoid Downgrades Scottsboro AL
    - How to Avoid Downgrades Selma AL
    - How to Avoid Downgrades Semmes AL
    - How to Avoid Downgrades Sylacauga AL
    - How to Avoid Downgrades Talladega AL
    - How to Avoid Downgrades Theodore AL
    - How to Avoid Downgrades Trussville AL
    - How to Avoid Downgrades Tuscaloosa AL
    - How to Avoid Downgrades Tuscumbia AL
    - How to Avoid Downgrades Valley AL
    - How to Avoid Downgrades Wetumpka AL

    Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

    Topics:
    Advertising Family Home Services Real Estate Resources
    Business Services Fashion Industrial Goods & Services Retail & Consumer Services
    Career Financial Services Insurance Software
    Cars Food & Beverage Internet Technology
    Computer Hardware Franchise Legal Telecommunications
    Construction Health Miscellaneous Trade Shows
    Education Holidays Nightlife Travel
    Entertainment Home Appliances Online Database Weddings
    Environmental Home Electronics Pets World History