cramerjohn004
115 posts
Oct 05, 2022
7:04 AM
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Inconsistent buckets make it possible for merchant service providers to offer a very low qualified rate while still turning a profit because they're able to route interchange categories into the mid and non-qualified pricing tiers.
The tricky part about inconsistent buckets is that rates are manipulated behind the scenes without you (the merchant) knowing which interchange categories are going into which tier. By the time you figure out that you're not actually getting the low rate you were promised, it's too late. The provider has already gotten your money.
Now that we've got background information out of the way - the short answer to how merchant North American Bancard Sales Partner account providers can advertise rates that look too good to be true is because they are. In a situation like this interchange categories are manipulated into higher mid and non-qualified tiers to make up for lower margins on transactions that are routed to the artificially low qualified rate tier.
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