Credit Processing

3-Tier Pricing

Under the 3 tier pricing model the merchant account provider will group different transactions (i.e. when a consumer makes a purchase at a vendor using their credit card that will be a transaction) into three tiers and then assign a different fee rate to each tier. The criteria for each tier may vary widely.

6-Tier Pricing

In addition to credit cards there are also debit cards, which carry much lower interchange rates due to the fact that they generally do not involve the provision nor processing of credit. Some merchant account providers account for these cards in their pricing structures and so in effect create a 6 tier pricing model. In it you have the tiers for credit cards as discussed above and also tiers for debit card transactions that are processed either with or without a pin number.