Hi, I’m Melissa Blackburn with 2Checkout,
and today we’ll be talking about Merchant Discount Rate. Merchant Discount Rate is a
fee assessed for the processing of a credit card payment from a customer. Discount rates
are traditionally stated as a percentage of each purchase transaction that is processed.
Often, these rates are based on the type of business the transactions are being processed
for, the types of cards used by consumers, and the size of average transaction, also
known as average ticket or average sale. Usually the largest component of the discount rate
are the fees charged by the payment system itself, which is often called interchange.