Tiered Pricing
Tiered Pricing, also referred to as bucket pricing, standard pricing, qualified pricing, or packaged rate pricing, is a rate structure in which several hundred different processing rates (aka: Interchange) are packaged into separate pricing tiers. Most providers package the rates into 3 groups often called “Qualified,” “Mid Qualified,” & “Non-Qualified” rates. These tiers, or “buckets,” represent 3 different possible fee tiers imposed by a provider on credit card transactions ran by a merchant, with Qualified transactions receiving the lowest markups & Non-Qualified transactions receiving the highest markups.