Discount rates are typically associated with Tiered Pricing or bucket pricing where a Processor provides, most times, 3 to 4 different rates combining the interchange + DFA + mark-up. Per item fees are separate, typically. However, some times, and to the merchant’s demise, the per item fees can be combined into a completely bundled rate. The terms used with bucket or tiered pricing are typically qualified, mid-qualified, non-qualified, and then each of those 3 terms with check card in front, for example, check card qualified.
Although bucket and tiered pricing looks simple, due to the fact of only a few rates, these pricing structures are typically used to hide fees and card types. WHY IS THIS IMPORTANT? How does the business owner possibly have enough time to know what a qualified transaction is verses a mid-qualified transaction? So, with bucket or tiered pricing, the owner takes the processor’s word for it. We only offer tiered or bucket pricing, if our clients request to have it. We always price accounts based upon average ticket, number of tickets, and how the credit card transactions are taken. Transparency is the Stillwater Payments’ way to do business.