Merchant Glossary: Basis Points
Basis 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%.