Non-Qualified

Non-Qualified is a term used to classify certain types of transactions within the payment processing industry. It specifically refers to transactions that fail to meet the criteria necessary to qualify for the most favorable interchange rates. These transactions may not interchange at the best rate for a variety of reasons, including but not limited to being entered manually rather than electronically, not being settled within the required timeframe, or lacking the complete data set needed for optimal processing.

The term highlights the importance of adherence to specific processing standards and practices to achieve the lowest possible transaction fees. Manual entry of transaction details, delays in settlement, and incomplete transaction data can all result in a higher cost for the merchant, known as a non-qualified rate. This categorization serves as a critical reminder for businesses to optimize their transaction handling processes to avoid incurring higher fees and to maintain efficiency and cost-effectiveness in their payment operations.