What is a non-qualified rate?
When a transaction is processed in accordance with the rules established in the Payment Processing Agreement, signed by the merchant and his or her processor, but does not meet the highest standards for payment acceptance and/or complies with some applicable security requirements, but not enough in order to be classified as either qualified or mid-qualified, it is charged a discount rate that is less favorable than the mid-qualified. That rate is called a non-qualified rate.