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.