Merchant Discount Rate Calculator
How much of your MDR is actually negotiable.
Processor pricing varies by country, card type and whatever you negotiated, and it changes without much notice. Take the real figures from your own statement — these defaults are a starting point, not your account.
Merchant discount rate
2.9%
0.96% of it is your processor's margin
Only 0.96% of your 2.9% is negotiable — the rest is interchange and scheme fees your processor passes straight through. Negotiations that talk about the headline rate rather than the margin usually go nowhere, because the processor cannot move most of it.
How the Merchant Discount Rate Calculator works
Your merchant discount rate is total fees over card volume. Most of it is interchange and scheme fees passed straight through, and only the remainder is your processor's margin. Negotiating the headline number rather than the margin is why most rate conversations go nowhere.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is the merchant discount rate?
The all-in percentage you pay to accept cards — total fees divided by total volume. It bundles interchange, scheme assessments and your processor's margin into one figure.
How much is negotiable?
Only the processor's margin, which for a small merchant is often well under half a percent of a two-and-a-half percent rate. Asking for a rate below interchange is asking for something no processor can give.
How do I find the split?
Ask for an interchange-plus statement, which itemises interchange, scheme fees and the processor's markup separately. If your processor will not provide one, that is itself informative.
When is it worth renegotiating?
After any material volume increase, and whenever your card mix shifts. Processors rarely reduce rates unprompted, and the conversation is much easier when you can quote your own effective rate back at them.