The annual rate of return that could be earned currently on a similar investment; used when finding present value; also called opportunity cost.
the assumed interest rate when computing present or future value. It is used to determine the donation receipt for establishing a charitable remainder trust, or for giving a residual interest in property.
The interest a private bank pays for a loan from the US Federal Reserve System.
A collection of fees charged by the acquirer to process the merchant's transaction. This includes interchange fee, assessment, and per item charges.
The interest rate charged by the Federal Reserve for short-term loans to member banks, here also called bank rate. The Fed can directly affect business growth by raising or lowering this discount rate. Also, the interest rate used in discounting future cash flows; here also called capitalization rate.
is an arbitrary rate selected to apply to a stream of costs and benefits for the calculation of Net Present Value. The discount rate allows for the time value of money to be factored into the calculation of Net Present Value. Discount rates can also be used to make an assessment of projects of different risk levels by assigning a higher discount rate to projects of higher risk.
The percentage of the face value of an invoice tha... more
A very low interest rate at which Federal Reserve Bank member institutions may borrow money from the central bank on a short term basis.
The percentage rate per annum above the interest base rate.
an interest rate applied to a single cash flow that will not be paid or received until a future date in order to calculate the present value of that future cash flow. Mining Terms
The rate of interest banks must pay when they borrow funds from the Federal Reserve to meet their reserve requirement.
This is the fee that is charged to a merchant by Visa, MasterCard, Discover and American Express, for processing their credit card transactions.
The interest rate used in the process of discounting.
The interest rate is the rate at which the central bank gives out credits to financial establishments of the country.
The mortgage interest rate is lower than the lenders current normal standard variable rate for a stated period, usually shown as a fixed percentage reduction to the lender's normal variable rate e.g. 1.00% discount for 1 year.
Interest rate at which a central bank will discount government paper or lend money against government paper collateral. See separate entries such as "Germany – Key Interest Rates" for the Group of 10 nations and Switzerland.
The interest rate charged by a central bank on loans to its member banks. A change in the discount rate is usually followed by similar changes in the interest rates charged by banks and money markets.
1. An annual competitive rate of return on total invested capital necessary to compensate the investor for the risks inherent in a particular investment. 2. The rate at which the Federal Reserve lends money to its eligible banks. These are short-term loans to fulfill immediate cash needs, not supplement the bank's capital. Thus, the discount rate is not a cost of funds indicator but more of a signal to the banking community.
A concept used by accountants: that income in the future is worth less than income now. The higher your discount rate, the less willing you are to make long-term investments.
(1) The interest rate at which a bank or other lender agrees to make advance payments to the holder of a bill of Exchange or other Commercial paper, i.e. the deduction from its face value practised by the bank. It is thus a charge on the person or company seeking to discount his bills, and depends on the time left until the maturity of the instrument, the liquidity of the financial markets, etc.(2) The interest rate at which a country’s Central Bank lends to commercial banks, when these are temporarily short of funds. Commercial banks need to pledge government and other first-class debt instruments as collateral to borrow from their Central Bank. Such borrowings are of a short-term nature as they are meant to meet the short-term liquidity needs of commercial banks. Français: Taux d'escompte Español: Tipo de descuento
The rate, per year, at which future values are diminished to make them comparable to values in the present. Can be either subjective (reflecting personal time preference) or objective (a market interest rate). The interest rate that the Fed charges commercial banks for very short-term loans of reserves. One of the tools of monetary policy.
Interest rate at which the Bundesbank ( q.v.) lends to banks by rediscounting trade bills and treasury bills falling due within three months.
The rate of return on investment; used to convert future income into present value. The rate an investor requires to discount future income to its present worth.
Rate at which the Federal Reserve loans money to banks, which in turn guides commercial banks in establishing their loan rates for customers. .
A rate which is a certain percentage below the lender's SVR for a certain period
This is a fee that the major credit cards charge for handling a transaction.
The lending rate that the Federal Reserve Bank charges on loans made to other banks and financial institutions. Changes in this rate tend to have large ripple effects on the rates banks in turn charge their customers. The bond market and sometimes the stock market react sharply to changes in this rate.
The amount we discount or reduce the value of a future payment. When you borrow money from the bank at 10 percent annual interest, you are in effect saying that having the money now is worth 10 percent more to you than having the same amount one year from now.
(or discount factor). This accounts for the time value of money and arises naturally in financial models, such as a portfolio selection problem. A discount rate of 7% means $1 earned a year from now has a present value of approximately $93.46 (1/1.07). If $1 is earned n years from now, and the discount rate is r, the present value is $1/(1+r)^n. In continuous-time models, there are variations, such as defining the present value of K dollars at time t to be K(1-e-rt). In infinite horizon dynamic programming, the discount factor serves to make value iteration a contraction map. In that case, the fixed point of the stationary equation, F(s) = Opt{r(x, s) + F(T(s, x)): x in X(s)}, is obtained by successive approximation - i.e., value iteration for an infinite horizon DP. This converges to a unique fixed point (F) if 0 1. Here, the DP notation is used, where is the discount factor.
The interest rate used in the discounting process, that is, the process by which future cash payment of expenditure is converted to an equivalent present day value.
A percentage-based fee paid to the merchant account or credit card processing provider or ISO for handling an electronic transaction. All merchants are subject to these rates, although the actual percentage may vary.
a compound interest rate that converts expected future income into present value. definition of discount rate defined what is meant by the term discount rate what does discount rate mean
In accounting this is the rate used to discount future cash flows in order to determine their present value. To Top
A percentage-based fee, usually falling somewhere between two and ten percent, that is paid to the acquiring bank or ISO for the time and expense involved in the handling of any electronic transaction.
the rate used to reduce future benefits and costs to their present time equivalent.
the interest rate at which central banks discount government and other sure debt instruments from commercial banks; the rate at which they lend to commercial banks with such instruments as collateral.
The interest rate charged by the Federal Reserve on loans to its member banks. A change in this rate is viewed as a strong indicator of Fed policy with respect to future changes in the money supply and market interest rates. Generally, a rise in the discount rate signals increasing interest rates in the money and capital markets. The rate at which an investment' revenues and costs are discounted in order to calculate its present value.
In the U.S. the rate at which the Federal Reserve will lend short-term funds. Most countries' bank rates are known as the discount rate.
A percentage rate charged by the bank for processing a merchant's transaction. This rate is usually determined by the type of business and/or how the credit card is processed. Retail based transactions (card present) will always have a lower discount rate than mail, phone, or Internet transactions (card absent).
a calculation applied to costs or benefits which occur in the past or in the future, to adjust them for the present given social time preferences
The rate the Federal Reserve charges member banks for borrowing.
the interest rate that the Fed charges commercial banks when they borrow from the Fed.
A fee in percentage paid to the merchant account provider or ISO for handling an electronic transaction.
The discount rate for the DDM calculations is the rate of return investors require when investing in a particular company. It should be directly correlated with risk. Historically, investors have required a return of four to six percent in excess of long-term government bonds to account for the risk of an average stock investment. This has resulted in long-term returns from the stock market of approximately 11-12 percent
The interest rate that is used to bring a series of future cash flows to their present value, thereby stating them in current (today's) dollars.
Many lenders may offer you a lower "teaser" rate on an adjustable rate mortgage for the first adjustment period. After this period is over, the lender will adjust your loan according to the normal lenders margin rate.
The fee paid by a merchant to their merchant bank for the processing of the credit card transactions. Discount is calculated by multiplying a pre-established Discount Rate by the volume of credit card transactions. Example: If a customer makes a credit card purchase worth $10.00 and your discount rate is 2.4%, you pay $0.24 for the $10 sale.
the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System
a low, introductory interest rate that usually lasts only six months
an interest rate used to determine the present value of a future payment or receipt
a small percentage that is deducted from the total cost of an order
(Hackett, 1998, chapters 5, 6, and 12). The rate at which the present value of a benefit to be received in the future shrinks as the time lag increases. Discount rates are embodied in interest rates charged on borrowed money and other financial investments in financial markets. (A common manifestation of how people value money today compared to money in the future is the failure of many people to set aside a small amount of money in the present, even though they know it will grow into a large amount of money for future uses such as retirement. In effect, they discount those future benefits at a higher rate than the interest that they expect on their savings.)
When an interest rate is used to calculate the net presentvalue of an investment, it is called the discount rate.
The mortgage interest rate is lower than the current normal standard variable rate for a certain period, usually shown as a fixed percentage reduction to the lender's normal variable rate eg. 2.00% discount for 2 years. There is usually a penalty if you pay off all or part of the loan during the discounted period.
The compound interest rate used to reduce expected future cash flows to their estimated present value.
A rate of return used to calculate the present value of multiple periods (usually years) of payments.
The interest rate at which eligible depository institutions may borrow funds, usually for short periods, directly from a Federal Reserve Bank. The law requires the board of directors of each Reserve Bank to establish the discount rate every 14 days subject to the approval of the Board of Governors.
This is the percentage of the total transaction amount that the bank will usually deduct prior to transferring your deposit into your bank account. Typical discount rates range from 2.5% to 5%, depending on your type of business and other factors.
The interest rate charged by the Federal Reserve Board for overnight loans to member banks. A change in this rate can have a dramatic impact upon other interest rates and upon bond prices. A Prime Rate change usually follows a change in the Discount Rate. (see also Federal Funds Rate, Prime Rate)
The percentage of an invoice's face value earned by a factor. It is calculated either on the face value itself or the amount advanced to the client.
1. The interest rate used in calculating the present value of future cash flows. The discount rate reflects not only the time value of money but also the riskiness of the cash flow. 2. The interest rate charged by the Federal Reserve on loans to banks and other financial institutions.
The annual percentage rate at which the value of money reduces over time to give a present day value.
In relation to the issue of debt securities, it refers to the difference between the face value of the security and the value at which it is acquired, expressed in percentage terms. In relation to asset valuation, it refers to a rate which is applied to forecast cash flows to calculate present value.
The ratio of the earnings on an investment to the principal to be received at maturity, divided by the fraction of the year your investment is outstanding. Also called Bank Discount Rate.
The percentage rate that a bank card issuer charges the merchant for the settlement of sales transactions.
The small percentage of each transaction an acquiring bank charges you for the right to use your merchant account.
The interest rate the Federal Reserve charges banks for discount loans; also the interest rate used to convert income to be received in the future into present value.
Used to convert future income / expenditure to its present day value.
a reduced mortgage interest rate that lasts for a fixed period of time.
A percentage off the lender's Standard Variable Rate and set for a specific amount of time, e.g. 0.5% off for 2 years.
The interest rate charged by the Federal Reserve Bank for loans made to regulated savings institutions, credit unions, and commercial banks.
This is a term to describe an interest rate, which is set lower than the standard rate.
The rate of interest selected and used in DCF when calculating future incomes and expenses.
A percentage rate used to delineate the time value of money; used to calculate the present value of a future inflow or outflow of funds. The rate can be based on a variety of factors and assumptions, including the cost of funds and the desired return on investment.
The rate of return that is used to find the present value of a future cash flow
Dominant future Drawdown Click here to return to the top of the page
The difference in the percentage points between the initial interest rate and the fully indexed rate (index rate plus margin).
The percentage of interest that any of the twelve regional federal reserve banks charges to its member commercial banks for a short-term loan is called the discount rate because the lending institution's return already has been deducted, or "discounted," before the loan arrives. Given a loan for $100,000 at 6 percent, for example, the recipient would receive only $940,000.
The interest rate used to discount future cash flows to determine Present Value. Sometimes determined with reference to 10-year bond and risk margin.
The annualised difference between the redemption value (on Treasury bills) and the purchase price of £100 nominal value of the bills, expressed as a percentage.
The interest rate used for computing the present value of a sum of money payable in future.
The discount rate was abandoned on 30 June 2002 and replaced by the reference rate. From April 1992, the discount rate was used as a reference rate but had no connection to monetary policy. The discount rate reflected the general level of interest rates and was invoked, for example, in the Interest Act, which contains provisions on penalty interest.
The rate at which the face value of the bill or note is discounted to its present value. It is composed of an objective cost of carry for the period (such as LIBOR) and a margin for the perceived credit risk of the obligor/guarantor.
A percentage of each transaction that the merchant is charged by the Merchant Service Provider for facilitating a credit card transaction.
The extent to which the value of money to be invested in the future is reduced to reflect the equivalent value of that money in the present day.
This interest rate is discounted from the published bank standard variable rate for an agreed period from the start of the mortgage.
The percentage of sales charged by acquiring banks for settlement of transactions.
A collection of fees charged by the acquirer to process the merchant's transaction Electronic Cash Register A device used for cash sales. Can also be integrated to accept credit cards
A rate of return used to convert a monetary sum, payable or receivable in the future, into present value. Alternately, a rate of return used to convert a series of future anticipated cash flow to a present value.
A small percentage of each transaction that is withheld by the Acquiring Bank or ISO. This fee is basically what the merchant pays to be able to accept credit cards. The fee goes to the ISO (if applicable), the Acquiring Bank, and the Associations.
Is the interest rate used for adjusting for the time value of money for Net Present Value, Option Pricing or other Market Models. It can also refer to the rate that the Federal Reserve charges its members.
This is a rate of each transaction amount that is typically charged by the credit card company. It also usually includes a percentage for the merchant account provider. The monthly amount of this rate depends on the transaction amounts processed during the month.
The interest rate that an eligible depository institution is charged to borrow short-term funds directly from a Federal Reserve Bank. 2) The interest rate used in determining the present value of future cash flows.
In central banking, the rate the Federal Reserve charges to member banks that borrow money from it.
The Discount Rate for any Participating Institution for any Program Year is the annual discount rate, as determined by such Participating Institution, that will be applied to such Participating Institution's Tuition Rate for Tuition Certificates purchased during that Program Year.
The rate used to determine the present value of a stream of future cash flows. The discount rate is calculated based on the Required Rate of Return after taking into account the riskiness and timing of the future cash flows.
A rate representing the cost of a lost opportunity. In other words, an investor seeks a rate of return that represents what could have been obtained had another investment been selected.
the rate of interest that the Federal Reserve charges member banks for loans.
The fee charged by the merchant financial institution to the merchant for services associated with processing card transactions.
the interest rate used to determine the present value of a series of future cash flows.
Discount rate is the fees which a merchant pays its acquiring bank or merchant bank in order to obtain right to deposit the value of each day’s credit purchases. This fees is generally a small percentage of the purchase value.
Rate of interest charged by the Federal Reserve to member banks that borrow from it.
the fee a credit card processing company or merchant bank charges the merchant account for giving the merchant deposit credit and handling the merchant’s credit card sales draft or electronic sales transactions
A fee associated with collecting, assessing, approving, processing and settling credit card transactions. The SecureSourceSM payments service reflects Discount Rates that include the RiskAssessorSM system.
The rates used for discounting the future cash flows
the interest rate that is charged by the Federal Reserve Board to member banks for loans.
The interest rate charged on loans by the Federal Reserve Bank.
A rate of mortgage interest which is marked down, or ‘discountedâ€(tm), at a rate below the lenderâ€(tm)s Standard Variable Rate (SVR) – for example, 2% discount for 12 months.
A rate used to convert future costs or benefits to their present value.
Percentage that gets discounted (deducted) from the transaction amount. The Discount Rate is the rate that gets paid for the most part to the bankcard company (Visa, MasterCard, etc.), the Issuing Bank (the bank that issued the bankcard to your customer) and the Acquiring Bank (the bank that the merchant processes with).
The amount (usually by percentage) charged by the processing center to the merchant for each credit card transaction.
Amount charged to a merchant by the acquiring bank for processing a transaction. It is usually a percentage of the transaction amount. The rate is typically based on monthly transaction volume (total dollars) and average ticket.
This is the interest rate charged by the U.S. Federal Reserve, the nation's central bank, for loans to member banks. The Fed, as it is called, alters rates to increase or decrease the growth of the nation's economic output.
A fee a Merchant pays the bank to process a purchase charged to a MasterCard and Visa card.
interest rate for loans to depository institutions by the Federal Reserve
In calculations of a company's intrinsic value, the term "discount rate" refers to the gain you'd need to realize to make your investment in a given stock worth the associated risk ("opportunity costs").
This is the interest a private bank pays for a loan from a county's national reserve system.
The interest rate at which eligible depository institutions may borrow funds directly from the Federal Reserve Banks. This rate is controlled by the Federal Reserve and is not subject to trading.
the interest rate charged to banks when they wish to borrow from the central bank
The interest rate paid by commercial banks to borrow funds from Federal Reserve Banks.
the annual rate at which future benefits or costs are discounted relative to current benefits or costs.
The interest rate that the Federal Reserve charges a bank to borrow funds when a bank is temporarily short of funds.
The rate of interest charged to commercial banks by a central banking authority.
The percentage rate at which money or cash flows are discounted. The discount rate reflects both the market risk-free rate of interest and a risk premium. Also see opportunity cost.
The interest rate, fixed by the Federal Reserve, which must be paid by a financial institution when it borrows from its regional Federal Reserve Bank.
A certain interest rate that is used to bring a series of future cash flows to their present value in order to state them in current, or today's dollars. The Federal Funds rate is very common.
The interest rate charged by the Federal Reserve to its member banks (banks which belong to the Federal Reserve System) for funds they borrow. This rate has a direct bearing on the interest rates banks charge their customers. When the discount rate is increased, the banks must raise the rates they charge to cover their increased cost of borrowing. Likewise, when the discount rate is lowered, banks are able to charge lower interest rates on their loans.
The fees charged by the card acquirer to the merchant for processing payment card transactions.
The rate used to calculate the present value of future cash flows. The discount rate is usually the cost of capital used to fund the investment from which the cash flow is expected.
A benchmark for interest rates, the rate charged by the Federal Reserve System on loans to banks.
The fee a merchant pays its acquiring bank/merchant bank for the privilege to deposit the value of each day's credit purchases. The fee is usually a small percentage of the purchase value.
A rate of return used to calculate the present value of a stream of payments.
This is the percentage rate that a merchant institution charges the merchant giving deposit credit for handling merchant sales drafts or electronic sales transmissions. The discount fee is the dollar amount charged.
the percentage, collected by bank - paid by the salesman for each purchase.
The rate of interest charged to banks who buy money from the Federal Reserve System. An increase in the rate not only discourages the banks from borrowing, but it also serves as a warning that rates may be going up. Also a compound interest rate used to convert expected future income into present value income.
A percentage rate that is charged by the acquiring bank for processing a merchant's transaction. The type of business and/or how the credit card is processed usually determine this rate. Retail based transactions, also known as Card Present transactions are assigned lower discount rates than MO/TO, also known as Mail Order/Telephone Order, Internet, or Card Not Present transactions.
The discount rate is the interest rate at which the Fed stands ready to lend reserves to commercial banks.
The interest rate implied in NPV calculations. Generally, this will have some relation to (but will not reasonably be equal to) the Private Partner's cost of borrowing funds
an interest rate; it is a way to standardize values to account for the time value of money. This analysis uses a 6% discount rate.
A reduced interest rate offered usually for the first year of the loan, after which the loan will revert to a standard rate. Also known as an introductory rate.
he compound rate of interest used to convert expected future income into present value.
This means that your interest rate charged on your mortgage payments is discounted at a certain rate below the normal standard variable rate.
The interest rate charged by the Federal Reserve to member banks that borrow funds. The discount rate will affect both consumer loan rates and mortgage interest rates over the long term.
The interest rate used in calculating the present value of expected yearly benefits and costs.
Interest rate used to convert a series of future cash flows (payments) into a single present value.
The rate that the Fed charges its members for funds borrowed on collateralized loans.
A certain interest rate that is used to bring a series of future cash flows to their present value in order to state them in current, or today's, dollars. Use of a discount rate removes the time value of money from future cash flows.
A percentage rate representing the rate at which the value of equivalent benefits and costs decrease in the future compared to the present. The rate can be based on the alternative economic return in other uses given up by committing resources to a particular project, or on the preference for consumption benefits today rather than later. The discount rate is used to determine the present value of future benefit and cost streams.
A fee taken by the bank as a percentage of all sales transactions. If the discount rate is 2.50%, for example, the discount rate fee is $2.50 for a $100.00 charge. There different discount rates for each transaction type: Qualified, Mid-Qualified and Non-Qualified. Mid-Qualified is higher than Qualified and Non-Qualified is higher than Mid-Qualified.
The rate that the Federal Reserve charges it member banks on loans.
The discount rate is the interest rate charged by the 12 Federal Reserve Banks for short term loans to member banks. The discount rate is typically low when the economy is in a recession and the Federal Reserve Board is attempting to increase the money supply thus making loans more accessible to potential borrowers with enticing low interest rates. Member banks borrow money and set their interest rate a notch above that, to make a profit, which is the rate that borrowers (you & me) see. When the Federal Reserve Board wants to slow the economy down to stop a potential inflationary period the discount rate is set high so that when member banks borrow money they are forced to set their rate a notch above this higher rate. Essentially this action tightens the money supply because potential borrowers typically don't want to borrow at these higher rates thus slowing overall market spending and cutting demand for goods and services (stuff).
Rates set by a Merchant Bank as a privilege fee for using their account services. This rate is arrived by taking into consideration the charges of number of factors, including charge volumes, risk models, size of the business, methods of submission, bank policies, etc.
A yield rate used to convert future payments or receipts into present value. (Appraisal Institute)
A term used in investment appraisal to refer to the “hurdle rate of interest†or cost of capital rate applied to the discount factors used in a discounted cash flow appraisal calculation. The discount rate may be based on the cost-of-capital rate adjusted by a risk factor based on the risk characteristics of the proposed investment in order to create a hurdle rate that the project must earn before being worthy of consideration. Alternatively, the discount rate may be the interest rate that the funds used for the project could earn elsewhere.
A mortgage interest rate that is lower than the current rate for a certain period of time (e.g., 2.00% below variable rate for two years)
Economic value a resource will have in the future compared with its present value.
The rate of interest charged by the Federal Reserve on loans it makes to member banks. This rate has an influence on the rates banks charge their customers.
A rate applied to a future stream of income to work out how much it is actually worth now. The discount rate is closely linked to long-term interest rates. Discount to net asset value If the share price of an investment trust is less than the value per share of the assets it has invested in (net asset value or NAV), the trust is said to be trading at a discount. The discount is expressed as a percentage of net asset value. A big discount can mean that the shares are relatively cheap. If the share price is higher than the net asset value the trust is trading at a premium.
This is the rate the Federal Reserve charges banks when they borrow from the Federal Reserve Banks. In January 2003, the Fed instituted a primary credit and secondary credit discount rate. The primary credit discount rate is set at 100 basis points over the federal funds rate target.
The rate used in a discounting formula to convert future costs and/or benefits into equivalent present values.
The rate used to calculate the present value of future cash flows in a discounted cash flow calculation... more on Discount rate
An interest rate which is set at a set margin below standard variable rate usually for a period of 1 - 5 years. Used as an incentive to attract potential new borrowers.
A percentage of each sale charged by Visa, MasterCard, Discover or American Express as a processing fee.
The percentage of the total transaction amount, debit and credit, that is deducted from the amount deposited to the merchant account.
the rate that the Federal Reserve charges to banks to borrow money. If the Federal Reserve lowers this rate, then interest rates throughout the whole economy will begin to fall and vice versa.
A fee associated with collecting, assessing, approving, processing and settling credit card transactions. ProSeries Merchant Account Services payments reflects Discount Rates that include the Wells Fargo RiskAssessor SM system.
This is the required rate of return used by an investor to discount future cash flows to their present value.
This rate is used to calculate the value of dollars paid or received in future years to current dollars. For example, a dollar today may only be worth 50 cents ten years from now.
In economic models, the time value of incurred costs or received benefits (effects). This is conventionally 3% or 5%, indicating the degree to which patients or payers would prefer to defer payments into the future, rather than incur them all in the present. Back to the top of the page
The relative weight placed on future interactions or benefits vis a vis immediate rewards in one's decision-making calculus.
This type of loan helps reduce your expenses in the early years of the mortgage by setting your interest rate at a few points below the lender's standard variable rate. Your interest payments may still fluctuate, but the differential between your rate and the lender's standard variable rate remains constant.
The interest rate charged to member banks that borrow directly from the nine Federal Reserve Banks.
This is percentage fee a merchant pays Humboldt Bank Merchant Services to process a trans-action (See "Qualified Discount Rate.").
The interest rate charged by the Federal Reserve Bank to its member banks for loans. Changes in this rate will have a significant impact on the real estate market.
The rate of interest charged by the Fed to member banks in the Federal Reserve district.
The interest rate the Federal Reserve System charges on a loan that it makes to a bank. Such loans, when allowed, enable a bank to meet its reserve requirements without reducing its loans.
The rate of interest used to calculate the Net Present Value (NPV) of investments. This could also be a company's "Hurdle" Rate, or minimum acceptable return.
This is the rate (in per cent indicator) that a merchant is charged for having his merchant sales drafts or electronic sales transmissions handled by a merchant bank. The discount fee is the amount charged in dollars.
The amount a merchant processor charges a merchant to give credit for depositing and handling merchant's daily credit card transactions.
A rate of interest representing the time-related value of resources. It is used to convert costs incurred at a given time to equivalent values at a specified time, usually in the future, for comparison purposes.
a rate of return (cost of capital) used to convert a monetary sum, payable or receivable in the future, into present value.
The interest rate charged by the Federal Reserve to member banks. Basically, the floor rate for interest rates in the economy.
Rate used to convert future cash flows to present values.
The interest rate charged by a financial institution for buying a note receivable.
T he percentage of sales amounts that the bankcard acquirer or T&E card issuer charges the merchant for the settlement of the transactions.
Rate at which INTEREST is deducted in advance of the issuance, purchasing, selling, or lending of a financial instrument. Also, the rate used to determine the CURRENT VALUE, or present value, of an ASSET or income stream.
The percentage of sales amounts that the bank card acquirer or T&E card issuer charges the merchant for the settlement of the transactions.
A rate of interest associated with borrowing reserves from a Central Bank by member banks in the Federal Reserve District. The rate is set by the officials of that Central Bank.
The rate used in calculating the present value of some future monetary amount.
A measure of how cost and benefits that will happen in the future compare to cost and benefits today.
The fee charged by Visa, MasterCard, Discover or American Express, being a percentage of each sale.
The time value of money or the rate of interest that a company wants to earn on its investments (Winston, 1995).
A percentage rate that merchants are billed for the processing of Visa or Mastercard transactions. This discount rate can be applied to net or gross sales.
The percentage of each transaction charged to the merchant. The discount rate charge is the lowest for transactions that carry the least amount of risk, and higher for transactions that carry more risk of fraud and chargebacks.
The mortgage interest rate is lower than the current normal standard variable rate, but only for a certain period of time. Usually shown as a fixed percentage reduction to the lender's normal variable rate e.g. 2.00% discount for 2 years.
A small percentage fee of the total credit card sales volume per month (usually ranges from 1.5% to 3.5%). Rates are often lower the higher the monthly sales volume. Rates may be higher if you have bad credit or your industry is high risk. Usually, point-of-sale terminal transactions offer the lowest Discount Rate.
The percentage of the face value of an invoice that a factor holds as its fee.
The rate applied to each year's cash flow from a building to determine the net present value (NPV) of a series of cash flows.
The interest rate that the Federal Reserve charges member banks for loans, using government securities or eligible paper as collateral. This provides a floor on interest rates, since banks set their loan rates a notch above the discount rate.
The rate at which a bill is discounted. Specifically it refers to the rate at which a central bank is prepared to discount certain bills for financial institutions as a means of easing their liquidity, and is more accurately referred to as the official discount rate.
An amount charged a merchant for processing its daily credit card transactions.
The Federal Reserve System's rate of interest charged to banks that buy money from them. An increase in the rate discourages banks from borrowing. A compound interest rate used to convert expected future income into a present value income.
The discount rate is the interest rate charged by the Federal Reserve on loans it makes to banks and other financial institutions. The discount rate becomes the base interest rate for most consumer borrowing as well, since a bank generally uses the rate it pays to borrow the discount rate as a benchmark for the interest it charges on the loans it makes. For example, when the discount rate increases, the interest rate lenders charge on home mortgages and other loans increases as well. And when the discount rate decreases, the cost of consumer borrowing generally decreases as well.
A rate used to discount future liabilities of pension funds. A lower discount rate will increase the PV of the liabilities thus increasing the deficit of a pension fund. The rate is based on long-dated index-linked gilt yields
A rate used to place a current value on future cash flows. It is needed to reflect the fact that money has a time value. In the embedded value calculated for ING's insurance operations, the discount rate is equal to the weighted cost of capital after taxation of the insurance operations.
(1) The rate charged member banks who borrow from the Federal Reserve System. (2) The rate used to convert future income into present value.
The discount related to the face value of a bank bill or promissory note expressed as a an annual percentage.
A percentage fee paid to the merchant account provider or ISO for handling an electronic transaction. Most web merchants pay between two and 10 percent of their revenue from online credit card or electronic check orders. DNS Registration - The web host provider will perform the appropriate registration procedures with InterNic in order to setup your domain. This is important as errors in your InterNic application can delay processing. You will be responsible for all InterNic fees.
The interest rate that the Federal Reserve charges on its loans to banks.
Interest rate at which an eligible depository institution may borrow funds, typically for a short period, directly from a Federal Reserve Bank. The law requires that the board of directors of each Reserve Bank establish the discount rate every fourteen days subject to the approval of the Board of Governors.
The rate of interest charged by a Federal Reserve Bank on a loan to a member bank, using government securities or eligible paper as collateral.
The interest rate at which financial institutions that are members of the Federal Reserve System (Fed) may borrow on a short-term basis directly to cover temporary deficiencies in the bank?s reserves. Banks borrow from the Fed as a last resort because frequent borrowing would raise concern by bank regulators.
Used by the Federal Reserve Board, it is the interest rate charged when a bank borrows from the FRB. When the discount rate is raised, the money market tightens.
The interest rate at which the Federal Reserve System stands ready to lend reserves to commercial banks. The rate is proposed by the 12 Federal Reserve banks and determined with the approval of the Board of Governors.
An interest rate which a bank pays when it borrows from a Federal Reserve bank. This rate corresponds to a future sum of money owed at its present value.