What Is A Merchant Account Discount Rate?

Discount Rate is the rate that is charged by the processor taking out a certain percentage from each transaction. Every bank charges a discount rate for processing credit cards. The processor also charges a small percentage of the transaction to handle the transaction for your business. Banc Certified offers the lowest discount rates for your credit card processing in the industry guaranteed. Call us toll free 877-861-8008.

There are two types of discount rates in credit card processing. Keyed Discount Rate and Swiped Discount Rate.

Keyed Discount Rate:

Keyed processing is done by entering or "keying" numbers into the terminal by hand. The rates for the keyed processing are higher than for the swiped processing because there is more risk involved. Keyed accounts could vary from: online ordered items that are keyed into the terminal, telephone orders that are keyed, or a retail store that cannot read the card's code has to be keyed into the terminal.

Swiped Discount Rate:

Many times swiped rates are much lower than keyed rates. The risk in the keyed rate is much higher therefore the swiped processing rate is lower. The reason for this is that a swiped rate, the card is present when the merchant runs it through the terminal. The keyed rate, the card does not necessarily have to be present and the rate is higher. Our terminals are designed for keyed and swiped transactions in one. Please contact us if interested in our Value-Enhanced Terminal Equipment.