As previously referenced, discount rates relate to the fees charged to merchants when customers spend electronically. Qualified discount rates are one of three types – the others being mid-qualified and non-qualified – and are the rates most often charged. Credit card issuers have their own definitions qualification for transaction that fall in one of the three tiers, but generally speaking, qualified discount rates are the most highly sought after and cost the least. In addition to credit risk, when transactions were captured – compared to when they were authorized – can influence discount rate status. The type of card used can play a role as well, such as rewards cards compared to traditional credit or charge cards.