Glossary
Net Revenue
In the context of payment processing and financial services, net revenue often refers to the income a company retains after subtracting the costs associated with the generation of that income. Specifically, for companies involved in credit card processing or similar financial services, net revenue is calculated as the difference between discount income and interchange expense.
The formula for net revenue in this sector can thus be expressed as:
Net Revenue=Discount Income−Interchange Expense
Net Revenue=Discount Income−Interchange Expense
Understanding this calculation is crucial for payment processing companies to evaluate their profitability and financial performance. It helps clarify how much revenue is actually retained after essential costs are covered, providing a clearer picture of financial health and operational efficiency.