One of our processing partners, Clearent, offers insights to the differences between the Daily Discount and the Monthly discount for credit card fees and why it might be useful during this economy:
Credit card processors typically offer two billing options, Daily Discount and Monthly Discount. The difference between the two is the timing of when the fees are deducted from the merchant’s account.
The impact of COVID-19 on our economy has led many small business owners and consumers to take a closer look at their expenses and work harder to stick to a budget.
And,.as COVID-19 continues to impact our economy, Daily Discounting can be used as a helpful budgeting tool.
Daily Discount is when fees are deducted from the merchant’s daily sales volume – a little bit at a time. With Monthly Discount, the merchant receives the gross deposit from their sales and their credit card processor deducts all fees at once.
By having fees deducted from each batch, instead of all at once, the merchant doesn’t have to worry about a large lump sum being deducted at one time. It’s about convenience, and can be especially helpful as sales volumes fluctuate during these challenging times.
If you have questions on daily discounts or any other processing questions, such as cash discounting or surcharging, please give us a call at 907-243-2683. Or click on the link below for a free consultation.