Discount Rate

Merchants are charged a fee for the processing services that enable them to accept cards as payment. This fee, called the “merchant discount” or “discount rate,” is negotiated with each merchant during the sales process. The discount rate is usually a percentage of the merchant’s sales volume.

Related Terms

  • ACH Credit

    An ACH credit occurs when the receiver’s account is credited.

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  • Cardholder

    A cardholder refers to the person to whom a credit or debit card is issued.

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