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What is Merit ?

Merit – Special interchange rate classifications provided by VISA USA or Master Card for Merchants who perform certain steps for transactions to reduce fraud risk. Merit III has the highest discount rate, then II, I and then standard.

Merit I

A MasterCard interchange fee rate reduction program. Requirements include 100 percent issuer-controlled authorization and transaction clearance within seven calendar days. Also known as the Partially Qualified rate .Partially Qualified Rate A rate. Indicates the transactions did not meet all the requirements to qualify at the best rate but did not qualify for the lowest rate.

Primary Qualifications:

  • Card not present at time of authorization, single electronic authorization
  • Transaction settled within 2 days of authorization
  • Banknet reference number and Banknet date required in clearing transaction
  • Also, non face-to-face and e-commerce transactions are exempt from the timeliness test.

 II This rate was eliminated

A MasterCard interchange fee rate reduction program. Requirements include 100 percent issuer-controlled authorization and transaction clearance within three business days. A name of a rate qualification prior to April 96. This rate was eliminated.

 Merit III

A MasterCard interchange fee rate reduction program. Requirements include 100 percent issuer-controlled authorization, transaction clearance within three (2) business days and magnetic stripe reading. The best rate an EDC merchant can qualify for (MasterCard only.) Also known as the Qualified rate.

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