Internet merchant accounts have a discount rate and a transaction fee for qualified transactions. How does that work?
Visa & MasterCard and the bank processor charge a fee for every transaction. On a $100 sale, with a discount rate of 2.35% and a transaction fee of 30 cents, the bank would deduct $2.35 plus 30 cents from the $100 sale. Therefore, on the $100 sale, the bank processor would keep $2.65 , giving you a net of $97.35.