merchant discount rate Definition | Business Dictionaries from
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Business Glossary


Business Definition for: merchant discount rate
merchant discount rate

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
Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.


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