Tiered pricing is a merchant account rate structure that credit card processors use to assess charges. Tiered pricing is also referred to as bundled pricing because it allows processors to group interchange fees into general rate tiers of their choice. Tiered pricing can be identified in a couple of different ways, the easiest of which is to look for the qualified , mid-qualified and non-qualified rate tiers after which the pricing model is named.
At its most basic, it means providing your product or service at different price points. Nearly every major business you encounter uses it in some way. When you're choosing between shipping something 5-7 day, 3-5 day, and 2 day or overnight, that's tiered pricing in action. It's around us all the time, whether we realize it or not.