Fee charged a merchant for processing bank card sales drafts and crediting the funds to the merchant's account. The merchant discount depends on sales volume; the discount declines as sales volume increases, and is negotiated individually with each merchant. If the merchant discount is 2%, the merchant keeps $98 for every $100 in sales. See also Interchange.
Merchant Discount Rate
| Banking Dictionary: Merchant Discount Rate |
| 5min Related Video: Merchant Discount Rate |
Learn More
 | Merchant Agreement (in banking) |
| Acquirer (in banking) |
| Merchant Bank (in banking) |
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 | Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved. Read more |
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Mentioned in
- Merchant Agreement (in banking)
- Acquirer (in banking)
- Merchant Bank (in banking)
- Rebate (in banking)
- Discount (in banking)
- Third Party Credit (in banking)
- Kenneth I. Chenault (businessman)
- MDR
- BancNet Payment System
- Credit card
