Merchant Discount Rate

A fee assessed for the processing of a Transaction from a Customer.

How does Merchant Discount Rate work?

Merchants and E-Merchants will typically have varying fees and service level agreements. Merchant Discount Rates will be traditionally stated as a percentage of each Transaction processed. They are calculated based on various aspects: such as Merchant Category Code, type of Transaction, type of payment instrument employed etc. Payment Processors have well-established infrastructures and fee schedule arrangements in place to support all types of Merchant payments. 

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