Understanding Credit Card Processing Fees

Qualified rate: This is the lowest possible rate charged for processing a credit card in the most secure type of transaction, such as physically swiping the card. A midqualified

Nonqualified rate: This is the rate for the least secure type of transaction, such as keyed transactions without address verification and mail order/telephone order transactions. It is usually 1 percent to 2.5 percent higher than the qualified rate.

Minimum monthly fee: This is a makeup fee for slow business. This is a fee that you’ll be charged if your other transaction fees are below a certain amount (often $25). If the various transaction fees don’t add up to a specified amount, you’ll be charged the difference between that month's fees and the minimum. This is a common charge with low-volume accounts.