What is a discount rate?

The discount rate is the percentage of the total transaction amount, debit and credit, that is deducted from the amount deposited into your account.

We offer two discount methods to charge and collect monthly processing fees – daily and month-end. Read below to find out more about each method.

Daily Discount Method

With the daily discount method, we deduct the qualified rate throughout the month and then deduct all other fees at the end of the month. Qualified discount rates deducted prior to depositing will appear as ‘LESS DISCOUNT PAID’ on your monthly statement. 

If you’re billed via daily discount you’ll receive net deposits from sales, as your qualified rate is deducted from batch totals at settlement. For example, a business with a qualified rate of 1.69% that settles a batch for $100 will receive a deposit of $98.31 ($100 – $1.69). 

Only the qualified rate is charged prior to deposit. Any other fees such as mid-qualified rates, non-qualified rates, transaction fees, and monthly fees are deducted in one lump sum at the beginning of the following month.

Month-End Method

With monthly discount, we tally all charges for the month and deduct fees in one lump sum at the beginning of the following month.

If you’re billed via monthly discount, you’ll receive gross deposits from sales throughout the month. 
Below is an example image of what this may look like on your merchant statement: