Differential Pricing can be seen as a hybrid between Cost + pricing and Flat Rate pricing. The value of a Differential largely depends on the mix of cards accepted by the merchant. In most cases, processors who offer Differential Pricing will provide a fixed Discount Rate for qualified cards and a fixed non-qualified markup on the Cost of non-qualified cards. This type of pricing has the potential to generate incredible savings for merchants who accept mostly basic cards through swiped or tapped transactions.