--- title: Correct Merchant Credit Card Processing Setup on Tiered Accounts description: "Merchant accounts with a Tiered pricing model have two options: MOTO or retail. Here’s why it’s important to know which you should be on." image: https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/tiered-pricing-options.svg --- [tel:1-800-601-0230](tel:1-800-601-0230) 800-601-0230 - Features - Solutions - Developers - [Pricing](https://www.payjunction.com/payments/pricing.html) - Resources [See a Demo](https://www2.payjunction.com/tour-payjunction) Features - EXPLORE PRODUCTS [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) - ACCEPT PAYMENTS [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH Electronic Checks](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - EXPLORE CAPABILITIES [Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integration Marketplace](https://integrations.payjunction.com/) [Remote Signature](https://www.payjunction.com/payments/signature-capture.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) Solutions - [Veterinary Streamline payment workflows and get paid faster with up-front deposits and payment schedules for high-cost procedures. 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Which Merchant Account Providers are trustworthy? Which one offers the best product? Which one will treat you like a valued customer? Once you’ve chosen a provider, there are even more decisions to make. What equipment does your business need? Who should you [delegate tasks and account access](https://blog.payjunction.com/user-access-control-benefits/) to? Which rate plan should your business be set up on? Working with a trusted provider will ensure that your merchant credit card processing — and your rate plan — is configured to fit your business needs. If a [Tiered rate plan](https://blog.payjunction.com/tiered-pricing-flat/) is the best fit, you’ll want to ensure that you’re set up on the right Tiered pricing plan from the get-go. That’s right, there are two types of Tiered pricing structures. ## Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! GET DEMO NOW ## Tiered Pricing: MOTO vs. Retail Understanding what you’re paying for on a Tiered pricing plan is relatively easy. Rates are bundled into three or four tiers, each with a sub-tier for rewards cards. These bundles make [reading your merchant statements](https://blog.payjunction.com/tiered-pricing-merchant-statement/) straightforward. ![Tiered-pricing-options](https://blog.payjunction.com/hs-fs/hubfs/BLOG/BLOG%20IN-LINE%20IMAGES/Tiered-pricing-options.jpg?width=760&name=Tiered-pricing-options.jpg) Depending on how your business processes transactions, you should be set up on either a [MOTO](https://blog.payjunction.com/moto-processing-definition) or retail Tiered pricing structure. MOTO, which stands for “mail order telephone order,” is for businesses that take the majority of their payments over the phone. This could be e-commerce businesses or retail locations that mostly processes card-not-present transactions. MOTO transactions typically cost more because keyed-in transactions run a higher risk. Why? Keyed-in transactions are more susceptible to fraud. Luckily, partnering with a trusted provider will help keep these fees at bay by enabling all [fraud-prevention settings](https://blog.payjunction.com/avs-cvv-benefits/) on your merchant account. Retail Tiered pricing is for businesses with a majority of card-present transactions. This rate plan is less expensive than MOTO because swiping or dipping credit cards is safer. So, why are we making such a fuss over these two very obvious, different rate plans? ## Implications of Incorrect Tiered Pricing Setup If you have an e-commerce business set up on a retail Tiered account or a retail business set up on MOTO, you’re going to run into problems. A MOTO Tiered account doesn’t have a Check Qualified tier, which is the lowest possible rate for debit cards. So, if your retail business is set up on MOTO, you won’t have access to the lowest rate and will end up paying a higher rate for debit cards. Similarly, if an e-commerce business is set up on a retail plan, the keyed-in transactions are going to [downgrade](https://blog.payjunction.com/interchange-downgrades-unethical-billing/) to a more expensive tier because they’re considered riskier transactions for a retail plan. Being set up on the wrong plan can also put your business at risk for [chargebacks](https://blog.payjunction.com/tag/chargebacks/). In either scenario, both the issuing banks and the card brands are expecting the majority of transactions to be run by the corresponding payment method. If they see the opposite for the majority of your transactions, you’re likely to receive chargebacks with a reason code of “card-present environment” or “card-not-present environment.” Confirming which Tiered pricing plan you’re on may seem minuscule compared to all your other to-dos when setting up your merchant credit card processing, but ensuring it’s set up properly from day one will save your business money in the long run. Be honest with your provider about how you take payments and don’t hesitate to double check the setup on their end. ## Discover the steps to merchant account set up. [![LEARN THE PROCESS](https://no-cache.hubspot.com/cta/default/635739/d2e11e88-8986-4e7d-b936-f548976b98c7.png)](https://cta-redirect.hubspot.com/cta/redirect/635739/d2e11e88-8986-4e7d-b936-f548976b98c7) Have you been issued chargebacks because your Tiered rate plan was set up incorrectly? Did you know there were two types of Tiered pricing structures? Let us know in the comments section below. [Rates](https://blog.payjunction.com/topic/rates) [Credit Card Processing](https://blog.payjunction.com/topic/credit-card-processing) --- ##### [![When Should You Apply a Tax on Shipping?](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/is-shipping-taxable.svg) When Should You Apply a Tax on Shipping?](https://blog.payjunction.com/is-shipping-taxable) ##### [![Do You Know Your Customers? 5 Steps to Find Out](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/know-your-customers.svg) Do You Know Your Customers? 5 Steps to Find Out](https://blog.payjunction.com/know-your-customers) ###### About Author ![Picture of Ursula Librizzi](https://blog.payjunction.com/hs-fs/hubfs/Ursula_Librizzi.jpg?width=200&height=200&name=Ursula_Librizzi.jpg) ### Ursula Librizzi Ursula is the sales and marketing operations manager for PayJunction. She oversees daily marketing tasks and liaises between the sales and marketing departments. ###### Related Posts ## [![How to Customize Transaction Fields With PayJunction](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/cvv-input-customization.svg) How to Customize Transaction Fields With PayJunction Welcome to PJ University, where we teach you how to use PayJunction like a pro. Today’s lesson is how to customize your processing details. Please note that you must be an account administrator to use this feature.](https://blog.payjunction.com/cvv-input-customization) ## [![Merchant Processing: 3 Tips to Know](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/merchant-processing.svg) Merchant Processing: 3 Tips to Know Are you just starting to research merchant processing for your business? Are you looking to improve your current setup? Either way, we’ve got the tips and tricks to take your business to the next level. Follow these three tips to master your own merchant processing:](https://blog.payjunction.com/merchant-processing) ## [![Credit Card-On-File Transactions: A Complete Guide](https://blog.payjunction.com/hubfs/BLOG/HERO%20IMAGES/credit-card-on-file.svg) Credit Card-On-File Transactions: A Complete Guide What is a Card-On-File Transaction? The shift to digital interactions has sky-rocketed in recent years, primarily due to consumers’ increasing demand for fast, frictionless experiences. One area that has seen rapid adoption and growth is payments, driven by the rise of Apple Pay, Google Pay, PayPal, and Venmo, the ease with which a person can pay for goods and services. Companies like Uber, Lyft, Grub Hub and Instacart have made it the norm to pay without entering card details for each purchase. This is a practice called Credit Card On File. 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GET DEMO NOW](https://blog.payjunction.com/credit-card-on-file-transactions) ## Meet a Payment System You’ll Love - ###### FEATURES [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) - [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) [Remote Signatures](https://www.payjunction.com/payments/signature-capture.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) - ###### RESOURCES [Product Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integrations](https://integrations.payjunction.com/) [Blog](https://blog.payjunction.com/) [Guides](https://guides.payjunction.com/) [Support](https://support.payjunction.com/) [Service Status](https://status.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) - [Trust Center](https://trust.payjunction.com/) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [Pricing](https://www.payjunction.com/payments/pricing.html) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) - ###### RESOURCES [Integrations](https://integrations.payjunction.com/) [Guides](https://guides.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) [Trust Center](https://trust.payjunction.com/) [Service Status](https://status.payjunction.com/) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) ##### 800-601-0230 SIGN UP FOR OUR NEWSLETTER  Become a better advocate for your business. 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