A Downgrade means a higher processing cost due to transactions being processed incorrectly by the merchant.
All 300 plus options on credit cards can be simplified by breaking each transaction down into 4 categories.
Qualified Discount Rate: is the lowest possible rate.
Customer is present and the credit card is captured or "swiped" thru your terminal.
The Credit Card is a standard credit card. Not a Business or Rewards card.
The customer’s signature was also captured.
The transaction is "Batched" within 24 hours.
Note: "Batched" means the terminal for which you used to capture the card is closed or finalized within 24 hours.
Partial/Mid Qualified Rate:
This is the best possible rate.
The credit card info is manually entered or "keyed" into your merchant service equipment plus all required AVS (Address Verification System) information.
The customer uses a "Rewards Card."
Transactions are not "Batched" within 24 hours
Note: AVS: Address Verification System is where you key in the credit card number plus the users address, zip or security number, depending on the merchant service providers specifications.
Non-Qualified Rate:
Card is manually entered with no AVS info entered
The customer 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
Authorization Code: These are the 3 digit security code on the back of a credit card (AMEX uses a 4 digit on the front).
NOTE:
MOTO: Keying in the credit card information where customer is not present and no signature was captured. 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 via online payment gateway.
