How to Avoid Downgrades Kentucky

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

Complete Merchant Services
877-588-7507
108 Metcalfe Dr.
Hopkinsville, KY
Complete Merchant Services
877-588-7507
108 Metcalfe Dr.
Hopkinsville, KY
Complete Merchant Services
877-588-7507
108 Metcalfe Dr.
Hopkinsville, KY
Merchant Warehouse
866-599-3217
Lexington, KY
Merchant Warehouse
866-599-3217
Louisville, KY
Tico Credit Company
(270) 843-6002
130 Walton Ave
Bowling Green, KY
World Finance Corp
(270) 239-3900
120 E Main St
Scottsville, KY
First Federal Savings Bank
(270) 828-8181
4055 Flaherty Rd
Vine Grove, KY
Personal Finance Co
(270) 534-0769
3240 Lone Oak Rd Ste F
Paducah, KY
Global Mortgage Link Llc
(270) 753-7407
111 N 12th St
Murray, KY

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

    Complete Merchant Services

    Complete Merchant Services provides payment systyems to some of the largest companies in the world.

    877-588-7507
    108 Metcalfe Dr.
    Hopkinsville, KY
    http://www.merchantservicescomplete.com

    Complete Merchant Services offers the complete solution for retail, online/internet, mail, and phone processing merchants. We have state of the art ATM machines giving your customers flexibility and options when it comes to purchasing your products. Our ATM machines come with free shipping and installation as well as free training. We offer a standard 1 yr parts and 30 days labor warranty.

    We offer dynamic retail solutions for businesses including gift shops, bars, automotive, and restaurants. We also offer wireless solutions for those who travel into remote locations and can be used for any service industry.

    If you need to buy paper and supplies or a pin pad we have everything you can think of including cables. You can purchase our pin pads outright or choose from our flexible leasing options that are available.

    If you would like to accept checks we also have check acceptance machines for processing your checks faster then ever before.

    If you need a website or if you need to have your website redesigned we also offer a wide range of website design solutions. We will create a top quality custom made website with all the bells and whistles.

    We team up with the top banks in the world to give our customers the lowest possible rates available. You can also receive a free digital terminal for processing your credit cards with us. This is a savings of at least $500.00 or the high expense of leasing a terminal.

    We can also provide gift and loyalty card programs giving you even more options when it comes to attracting new customers to your business.

    We offer quality merchant services for a value price and our customers always come first. If you are looking for a company that takes the best care of its customers then Complete Merchant Services is a great choice.



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