Merchant Discount Rate
/ˈmɜːrtʃənt dɪsˌkaʊnt reɪt/
Definitions
- (n.) A fee or percentage deducted by a payment processor from the amount charged to a consumer's card, paid by the merchant for card transaction processing services.
The merchant discount rate reduced the store's earnings from each credit card sale.
Forms
- merchant discount rate
- merchant discount rates
Related terms
See also
Commentary
Used primarily in payment and banking law, the merchant discount rate impacts contractual agreements between merchants and acquiring banks or payment networks.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.