Merchant Glossary: Basis Points
Click Here for a 30 Day Risk-Free TrialBasis points are the percentage that you are charged on a credit card transaction. One basis point is equal to 1/100th of 1 percent. Thus a rate of 2.33% is equivalent to 233 basis points. Often times in merchant processing you will hear the term basis points in regards to rates. You may hear this in terms of surcharge rates, also called mid qualified and non qualified. For example, the mid qualified surcharge rate may be 75 basis points. This is the same as saying 0.75%.
Other articles terms explained in the Merchant Glossary:
ACH / Automated Clearing House
Acquiring Bank
ATM Debit Card
Authorization
Authorization Code
Authorization Fee
Authorization Only Transaction
Authorization Response
Average Ticket Size
AVS / Address Verification Service
Basis Points
Batch or Batch Processing
Business Type
Debit Card
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