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Discount Rate

Discount rate is an umbrella term used to describe what merchants that accept credit card or other forms of alternative payment involving a processor will be charged when customers pay with plastic or mobile device. The fee amount is determined by several different contributing factors, but the overarching component of the discount rate – meaning the fees attached to each credit card sale – is the sticker value of the goods or services. The discount rate is a percentage of the sale, the amount of which hinges on several factors like credit risk and the type of card used. Generally speaking, low risk sales receive a “qualified” discount rate, customarily the lowest fee. Fees tend to be higher for “mid-qualified” and “non-qualified” sales.