Monthly Discount

The "Monthly Discount" is a method used in merchant services to handle the billing of processing fees associated with credit and debit card transactions. In this approach, rather than deducting processing fees on a daily basis (daily discount), the total fees accrued over the course of a month are summed up and deducted in one lump sum from the merchant’s settlement account at the end of each month.

This billing method offers several advantages:

However, it's important for merchants to ensure that they maintain adequate funds in their settlement accounts to cover the month-end deduction of accumulated processing fees. Failure to do so could lead to issues such as account overdrafts or disrupted service due to non-payment of fees.

Overall, the monthly discount method can be particularly beneficial for merchants looking for a straightforward and efficient way to manage their processing fees, especially those who prefer a tidier approach to their financial accounting.