What is the Discount Rate?

The discount rate is a collection of fees charged by the Acquirer to process a Merchant’s transaction.  This is usually charged to the Acquiring Bank by the Federal Reserve for borrowing money that is temporarily not available.  The discount rate or interchange fee is then charged to the Merchant to cover the expenses of the transaction.

Electronic Merchant Systems Payment Processing Glossary :

Defining key payment processing and merchant services industry terms to help business owners make better decisions.




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