Common use of Merchant Discount Rate Clause in Contracts

Merchant Discount Rate. a. The Merchant Discount Rate that we will apply to your Transactions will vary depending on whether the Transaction is a “qualifying” Transaction or a “non-qualifying” Transaction in accordance with the applicable Card Association Rules. A “qualifying” Transaction under the applicable Rules qualifies for the lowest applicable interchange rate set by the Card Association. A “non-qualifying” Transaction under the applicable Rules does not qualify for the lowest applicable interchange rate and is subject to a higher interchange rate, based on various criteria regarding the type of Transaction, as determined by the applicable Card Association and set out in the Rules. b. We will apply the Qualified Merchant Discount Rate (as listed on the Fee Schedule) to your “qualifying” Transactions. c. For your “non-qualifying” Transactions, we will apply the Qualified Merchant Discount Rate plus the Non-Qualified Adjustment (as listed on the Fee Schedule). You will also be charged an Interchange Differential which, for any given “non-qualified” Transaction, means the difference between (i) the interchange level at which such Transaction was actually processed by the relevant Card Association, and (ii) the lowest applicable interchange rate set by that Card Association. d. The combined total of your Card Fees, including the Merchant Discount Rate and any Interchange Differential that applied to your Transactions in any month will appear on the Merchant monthly statement.