What is a Discount Rate? What is your rate?

What is a Discount Rate? What is your rate?

Definition of Discount Rate:

Discount rates are typically associated with Tiered Pricing or bucket pricing where a Processor provides, most times, 3 to 4 different rates combining the interchange + DFA + mark-up. Per item fees are separate, typically. However, some times, and to the merchant’s demise, the p/I can be combined into a completely bundled rate. The terms used with bucket or tiered pricing are typically qualified, mid-qualified, non-qualified, and then each of those 3 terms with check card in front, for example, check card qualified.

Although bucket and tiered pricing looks simple, due to the fact of only a few rates, these pricing structures are typically used to hide card types. WHY IS THIS IMPORTANT? How does the business owner possibly have enough time to know what a qualified transaction is verses a mid-qualified transaction? So, with bucket or tiered pricing, the owner takes the processor’s word for it. If you want simple tiered pricing, why not get full card disclosure to make sure the processor is charging a fair rate. We offer tiered or bucket pricing, only if our clients prefer it and we disclose the card types to them. Transparency is the DonUp way to do business.

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Great company, great customer service, and they saved us money too!
Diana- Grillo Landscape Solutions

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