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Understanding Non-Qualified Fees

A non-qualified fee (sometimes referred to as a billback) is a fee generated when a transaction does not qualify at the expected level because it does not meet Visa®, MasterCard®, and Discover® Network requirements. Based on the data submitted and risk associated with particular transactions, Visa, MasterCard and Discover Network assign the appropriate interchange level. Each account is set up with an interchange level according to its processing method and business type. Any transaction that does not qualify at that level may result in a non-qualified fee being charged.

Common Non-Qualified Fees

Processing Guidelines

9. Hotel

Common Non-Qualified Fees

1. Missing/Invalid Tran ID from authorization (Visa)

Description: A unique identification code returned from Visa in the authorization request.

Some possible reasons for this non-qualified fee code:
  • Transaction was hand-keyed, but account is set up for all transactions to be swiped.
  • Address Verification Service (AVS) was not completed for a keyed transaction.
  • AVS did not match for a card not present hand-keyed transaction.
  • Electronic authorization data was not submitted, i.e. voice authorization was received and/or transaction was force entered.
  • The terminal application or software being used for processing is outdated and needs to be upgraded.

Remedy:
  • Swipe all credit card transactions.
  • Complete AVS when prompted.
  • Attempt to obtain correct address information from cardholder.
  • Obtain an electronic authorization and avoid forcing transactions where possible.
  • Have outdated terminals and software upgraded.
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2. Missing/Invalid Banknet data from authorization (MasterCard)

Description: A reference number assigned by MasterCard to each transaction

Some possible reasons for this non-qualified fee code:
  • Electronic authorization data was not submitted, i.e. voice authorization was received and/or transaction was force entered.

Remedy:
  • Obtain an electronic authorization and avoid forcing transactions where possible.
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3. Missing/Invalid ACI from authorization (Visa)

Description: Authorization Characteristic Indicator is a value determined by Visa based on the data included with the authorization request. It is then returned with the electronic authorization response.

Some possible reasons for this non-qualified fee code:
  • Card not present transaction hand-keyed with no AVS.
  • Hand-keyed transaction with but account is set up to swipe all cards.

Remedy:
  • Complete AVS when prompted for card not present transactions. (If your terminal or software is not prompting for AVS, please contact Customer Service.)
  • Swipe all credit card transactions.
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4. Transaction cleared as corp/business card (MasterCard/Visa)

Description: Designated for Business-to-Business transactions. This includes business cards, commercial cards, and purchase cards

Some possible reasons for this non-qualified fee code:
  • A commercial card was accepted at a T&E (Travel and Entertainment) merchant (hotel, car rental, restaurant).
  • Retail merchant failed to enter data at commercial card prompts. If merchant enters data when prompted, this reason code could be prevented.

Remedy:
  • This is a non-remedied non-qualified fee. Commercial card transactions clear at a higher percentage rate and will process with a higher fee.
  • Always enter tax and customer code data when prompted. (If terminal or software does not prompt for tax and customer code, please contact Customer Service.)
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5. Exceeded timeliness (MasterCard/Visa)

Description: Exceeded the time allotted by Visa and MasterCard to process a transaction

Some possible reasons for this non-qualified fee code:
  • Failed to batch terminal daily

Remedy:
  • Settle transactions daily.
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Processing Guidelines

6. Internet Merchant Processing Guidelines

As an Internet merchant, you are required to meet the following guidelines for transactions to clear at the best possible rate:

Visa
  • Obtain a valid authorization from your electronic equipment. (Visa permits only one authorization per transaction and it must be within 7 days of transaction/ship date.)
  • During authorization, an Address Verification Service (AVS) request must be included. (AVS is not required for purchasing or corporate cards.)
  • Authorization and settlement amount must match. (One authorization reversal is allowed.)
  • Order number and customer service telephone number/URL or email address must be included.
  • All original electronic authorization information must be provided at time of settlement; voice authorized or "forced" transactions are not eligible for your qualified rate.
  • Commercial card transactions at Non-T&E* (Travel and Entertainment) merchants must include the following additional data:
    • Business Cards must provide the sales tax amount.
    • Corporate Cards must provide the sales tax amount.
    • Purchasing Cards must provide the sales tax amount and customer code.
  • Commercial, Visa Signature, and Visa Infinite card transactions at T&E merchants are not eligible for your qualified rate.
  • Settle your transactions on a daily basis.
  • Electronic Commerce Indicators must be submitted in authorization and clearing messages.

Master Card
  • Obtain a valid authorization.
  • Authorization amount and the actual transaction amount cannot exceed a tolerance of 10%.
  • All original electronic authorization information must be provided at time of settlement; voice authorized or "forced" transactions are not eligible for your qualified rate.
  • Commercial card transactions at Non-T&E merchants must include the following additional data:
    • Business Cards must provide the sales tax amount.
    • Corporate Cards must provide the sales tax amount.
    • Purchasing Cards must provide the sales tax amount and customer code.
  • Commercial and World MasterCard card transactions at T&E merchants are not eligible for your qualified rate.
  • Non-U.S. issued card transactions are not eligible for your qualified rate. Settle your transactions on a daily basis.
  • Electronic Commerce Indicators must be submitted in authorization and clearing messages.

The above guidelines are compiled for the convenience of the recipient and should not be used as a substitute for reference to the actual association rules and other contractual documents. This document should not be used for coding; its intent is for business purposes only. These guidelines are confidential and proprietary to Wells Fargo Merchant Services, L.L.C.Back to Top
7. Car Rental Merchant Processing Guidelines

As a car rental merchant, you are required to meet the following guidelines for transactions to clear at the best possible rate:

Visa
  • Swipe all your transactions through your processing device to allow the transmission of the entire magnetic stripe data from the credit card.
  • Obtain a valid authorization from your electronic equipment.
  • All original electronic authorization information must be provided at time of settlement; voice authorized or "forced" transactions are not eligible for your qualified rate.
  • Total authorization amount and the actual transaction amount cannot exceed a tolerance of 15%.
  • Rental Agreement number and pick-up and return dates must be provided.
  • Settle your transactions on a daily basis.
  • Commercial, Visa Signature, and Visa Infinite card transactions are not eligible for your qualified rate.

Master Card
  • Swipe all your transactions through your processing device to allow the transmission of the entire magnetic stripe data from the credit card.
  • Obtain a valid authorization from your electronic equipment.
  • All original electronic authorization information must be provided at time of settlement; voice authorized or "forced" transactions are not eligible for your qualified rate.
  • Total authorization amount and the actual transaction amount cannot exceed a tolerance of 15%.
  • Rental Agreement number and pick-up and return dates must be provided.
  • Settle your transactions on a daily basis.
  • Commercial and World MasterCard card transactions at auto rental merchants are not eligible for your qualified rate.

The above guidelines are compiled for the convenience of the recipient and should not be used as a substitute for reference to the actual association rules and other contractual documents. This document should not be used for coding; its intent is for business purposes only. These guidelines are confidential and proprietary to Wells Fargo Merchant Services, L.L.C.Back to Top
8. Card Not Present/Mail Order/Phone Order
Card Not Present (No AVS) Merchant Processing Guidelines/Mail Order/Telephone Order Transactions

As a card not present merchant, you are required to meet the following guidelines for transactions to clear at the best possible rate:

Visa
  • Obtain a valid authorization.
  • Commercial card transactions at Non-T&E* (Travel and Entertainment) merchants must include the following additional data:
    • Business Cards must provide the sales tax amount.
    • Corporate Cards must provide the sales tax amount.
    • Purchasing Cards must provide the sales tax amount and customer code.
  • Commercial, Visa Signature, and Visa Infinite card transactions at T&E merchants are not eligible for the card not present rates.
  • Voice authorized or "forced" transactions must include the authorization code when settled.
  • Settle your transactions within 2 days of transaction date.

Master Card
  • Obtain a valid authorization.
  • Authorization amount and the actual transaction amount cannot exceed a tolerance of 10% (25% for restaurants, bars, barbers, and beauty salons; not applicable for hotels or car rentals).
  • All original electronic authorization information must be provided at time of settlement; voice authorized or "forced" transactions are not eligible for your qualified rate.
  • Commercial card transactions at Non-T&E merchants must include the following additional data:
    • Business Cards must provide the sales tax amount.
    • Corporate Cards must provide the sales tax amount.
    • Purchasing Cards must provide the sales tax amount and customer code.
  • Commercial, and World MasterCard card transactions at T&E merchants are not eligible for the card not present rates.
  • Non-U.S. issued card transactions are not eligible for your qualified rate.
  • Settle your transactions on a daily basis.

The above guidelines are compiled for the convenience of the recipient and should not be used as a substitute for reference to the actual association rules and other contractual documents. This document should not be used for coding; its intent is for business purposes only. These guidelines are confidential and proprietary to Wells Fargo Merchant Services, L.L.C. Back to Top
9. Hotel
Hotel Merchant Processing Guidelines Hotel MCC (Merchant Category Code) only

As a hotel merchant, you are required to meet the following guidelines for transactions to clear at the best possible rate:

Visa
  • Swipe all your transactions through your processing device to allow the transmission of the entire magnetic stripe data from the credit card.
  • Obtain a valid authorization from your electronic equipment.
  • Total authorization amount and the actual transaction amount can not exceed a tolerance of 15%.
  • All original electronic authorization information must be provided at time of settlement; voice authorized or "forced" transactions are not eligible for your qualified rate.
  • Folio number and check-in and check-out dates must be provided.
  • Settle your transactions on a daily basis.
  • Commercial, Visa Signature, and Visa Infinite card transactions are not eligible for your qualified rate.

Master Card
  • Swipe all your transactions through your processing device to allow the transmission of the entire magnetic stripe data from the credit card.
  • Obtain a valid authorization from your electronic equipment.
  • Total authorization amount and the actual transaction amount can not exceed a tolerance of 10%.
  • All original electronic authorization information must be provided at time of settlement; voice authorized or "forced" transactions are not eligible for your qualified rate.
  • Folio number and check-in and check-out dates must be provided.
  • Settle your transactions on a daily basis.
  • Commercial and World MasterCard card transactions are not eligible for your qualified rate.

The above guidelines are compiled for the convenience of the recipient and should not be used as a substitute for reference to the actual association rules and other contractual documents. This document should not be used for coding; its intent is for business purposes only. These guidelines are confidential and proprietary to Wells Fargo Merchant Services, L.L.C. Back to Top
10. Restaurant
Restaurant Merchant Processing Guidelines

As a restaurant merchant, you are required to meet the following guidelines for transactions to clear at the best possible rate:

Visa
  • Swipe all your transactions through your processing device to allow the transmission of the entire magnetic stripe data from the credit card.
  • Obtain a valid authorization from your electronic equipment (Visa permits only one authorization per transaction.)
  • Visa Debit Card transactions of less than $38.48 will not receive your qualified rate when the total authorization and settlement amount do not match.
  • Commercial, Visa Signature, and Visa Infinite card transactions at restaurants are not eligible for your qualified rate.
  • All original electronic authorization information must be provided at time of settlement; voice authorized or "forced" transactions are not eligible for your qualified rate.
  • Settle your transactions on a daily basis.

Master Card
  • Swipe all your transactions through your processing device to allow the transmission of the entire magnetic stripe data from the credit card.
  • Obtain a valid authorization that does not exceed a tolerance of 25% of the actual transaction amount.
  • Commercial and World MasterCard card transactions are not eligible for your qualified rate.
  • All original electronic authorization information must be provided at time of settlement; voice authorized or "forced" transactions are not eligible for your qualified rate.
  • Settle your transactions on a daily basis.

The above guidelines are compiled for the convenience of the recipient and should not be used as a substitute for reference to the actual association rules and other contractual documents. This document should not be used for coding; its intent is for business purposes only. These guidelines are confidential and proprietary to Wells Fargo Merchant Services, L.L.C. Back to Top
11. Retail/Face to Face
Retail Merchant Processing Guidelines/Face to Face Transactions

As a Retail merchant, you are required to meet the following guidelines for transactions to clear at the best possible rate:

Visa
  • Swipe all your transactions through your processing device to allow the transmission of the entire magnetic stripe data from the credit card.
  • Obtain a valid authorization from your electronic equipment (Visa permits only one authorization per transaction.)
  • Visa Debit Card transactions of less than $38.48 will not receive your qualified rate when the total authorization and settlement amount do not match.
  • Commercial card transactions at Non-T&E* merchants must include the following additional data:
    • Business Cards must provide the sales tax amount.
    • Corporate Cards must provide the sales tax amount.
    • Purchasing Cards must provide the sales tax amount and customer code.
  • Visa Commercial, Signature, and Infinite card transactions at T&E merchants are not eligible for the qualified rate.
  • All original electronic authorization information must be provided at time of settlement; voice authorized or "forced" transactions are not eligible for your qualified rate.
  • Settle your transactions on a daily basis.

Master Card
  • Swipe all your transactions through your processing device to allow the transmission of the entire magnetic stripe data from the credit card.
  • Obtain a valid authorization that does not exceed a tolerance of 10% of the actual transaction amount (25% for restaurants, bars, barbers and beauty salons; not applicable for hotels or car rentals).
  • Commercial card transactions at Non-T&E merchants must include the following additional data:
    • Business Cards must provide the sales tax amount.
    • Corporate Cards must provide the sales tax amount.
    • Purchasing Cards must provide the sales tax amount and customer code.
  • All original electronic authorization information must be provided at time of settlement; voice authorized or "forced" transactions are not eligible for your qualified rate.
  • Commercial and MasterCard World card transactions at T&E merchants are not eligible for the qualified rate.
  • Settle your transactions on a daily basis.
The above guidelines are compiled for the convenience of the recipient and should not be used as a substitute for reference to the actual association rules and other contractual documents. This document should not be used for coding; its intent is for business purposes only. These guidelines are confidential and proprietary to Wells Fargo Merchant Services, L.L.C.Back to Top
12. Super Market
Supermarket Processing Guidelines

As a Supermarket merchant, you are required to meet the following guidelines for transactions to clear at the best possible rate:

Visa
  • Swipe all your transactions through your processing device to allow the transmission of the entire magnetic stripe data from the credit card.
  • Obtain a valid authorization from your electronic equipment (Visa permits only one authorization per transaction.)
  • Visa Debit Card transactions of less than $33.34 will not receive your qualified rate when the total authorization and settlement amount do not match.
  • Commercial card transactions must include the following additional data:
    • Business Cards must provide the sales tax amount.
    • Corporate Cards must provide the sales tax amount.
    • Purchasing Cards must provide the sales tax amount and customer code.
  • All original electronic authorization information must be provided at time of settlement; voice authorized or "forced" transactions are not eligible for your qualified rate.
  • Settle your transactions on a daily basis.
  • Registration in Visa's Supermarket Program is required.

Master Card
  • Swipe all your transactions through your processing device to allow the transmission of the entire magnetic stripe data from the credit card.
  • Obtain a valid authorization from your electronic equipment that does not exceed 10% of the actual transaction amount.
  • Commercial card transactions are not eligible for the Supermarket rate.
  • All original electronic authorization information must be provided at time of settlement; voice authorized or "forced" transactions are not eligible for your qualified rate.
  • Settle your transactions on a daily basis.
  • Registration in MasterCard's Supermarket Program is required.
The above guidelines are compiled for the convenience of the recipient and should not be used as a substitute for reference to the actual association rules and other contractual documents. This document should not be used for coding; its intent is for business purposes only. These guidelines are confidential and proprietary to Wells Fargo Merchant Services, L.L.C.Back to Top
 
* T&E includes Restaurants, Hotels, Car Rentals, Passenger Transport, Cruise Lines and Travel Agents.