Less Discount Paid Means Less Money for You
"Less discount paid" is the term that credit card processing services use to indicate the amount of money that has been in fees throughout a given month. In order to determine the total amount paid in processing fees for a given month, you have to add "less discount paid" to the amount charged at the end of the month. Follow this link for a detailed breakdown of daily versus monthly discount, including a sample merchant statement that uses daily discount. There are several counter-intuitive terms in the processing industry that contribute to the confusion surrounding rates and fees. "Discount" is one such term that means the opposite of what you would expect. In the credit card processing world, the word discount refers to the rate that a processor charges. So, when a processor puts "less discount paid" on a processing statement, what they really mean is "less charges paid," or more clearly, "how much in fees you have already paid." Processors bill their clients for credit card processing fees on a daily or monthly basis.