What Is TDR (Transaction Discount Rate) And Why Do You Need To Be Aware Of It?

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Transaction Discount Rate (TDR) is an important metric to understand when it comes to accepting payments online.

Any kind of payment that is made through an online platform, such as a credit card or debit card, will be subject to a TDR.

This rate is based on the market rate of the payment processor and can vary from one processor to another.

TDR affects how much money a merchant receives from each payment transaction. The higher the TDR percentage, the more money is taken from the merchant in each transaction.

In this article, we will be sharing everything you need to know about TDR and why merchants need to be aware of this rate.

What is TDR?

The Transaction Discount Rate, or TDR, is the rate charged to a merchant for processing debit and credit card transactions.

The service is set up by the merchant, and they must agree to the rate before accepting debit or credit cards for payment processing.

The Transaction Discount Rate is a fee charged by a bank to a merchant for taking payment from their customers through credit and debit cards. 

The fee is generally 1% to 3% of the total transaction amount. The bank may lower the fee as sales of the merchant increase.

In simple words, the Transaction Discount Rate is the fee a merchant pays to their bank for processing customer payments.

It’s usually calculated as a percentage of the total transaction amount, and it can vary depending on several factors such as the type of card used, the merchant’s industry, and more.

Why is TDR important?

The TDR is an important component of the cost structure for businesses that accept credit and debit card payments. It’s also a major factor in how much customers pay to use their cards at a merchant’s store or website.

By understanding the rate, merchants can better evaluate the overall costs associated with accepting credit and debit card payments and make sure that they’re not overpaying for the service.

Also, by understanding the rate, customers can better understand the cost associated with using their cards. This information helps them to decide which payment option to use when shopping at a particular merchant.


Ultimately, TDR plays an important role in making sure that both merchants and customers get the best value for their money when it comes to payments.

It helps ensure that everyone is getting a fair deal and that each transaction is securely processed. It also helps create an environment of trust and transparency between merchants, banks, and customers.

By understanding TDR, businesses can make sure that they’re getting the best deal possible when it comes to their payment processing needs. 

This helps them stay competitive in an ever-changing market and make sure that their customers are getting the best service possible.

How Facilero Can Help You With Your TDR Needs?

Facilero is a payment processing solutions provider that helps businesses of all sizes lower their transaction costs.

With our platform, merchants can get the best rates and terms when it comes to accepting credit and debit card payments.

We understand the importance of TDR and strive to provide our customers with the most competitive rates and terms. We take the time to understand your needs and provide tailored solutions that meet those needs.

Our team is always here to answer any questions you might have about TDR or payment processing in general. We’ll work with you every step of the way to ensure that you get the best service possible.

Contact us today to learn more about our services!


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