Each payment card transaction is assessed a fee, called a discount rate. Discount rates vary between 2% and 2.5% of the transaction amount. This fee amount is influenced by the card-issuing bank, the type of payment card used (debit or credit), the transaction amount, the amount of time between authorization and settlement, and the overall perceived risk transactions.

The U of I system cannot absorb discount fees; merchant units are responsible for paying this fee. Payment card fees accumulate for each merchant ID and are charged back to the responsible unit each month. University Accounting and Financial Reporting processes Journal Vouchers in Banner for these monthly fees by debiting each merchant unit's designated CFOAP for revenue deposits. Fees are relative percentages to the revenues posted to the CFOAP (department internal funds account) used to record payment revenue.

Merchant Card Services collects an additional 25 basis points (0.25%) per transaction in order to fund office operations. Note: As of July 1, 2018, the 25 basis point fee increased by five basis points to 30.

Financial Reporting (PDF) overviews discount rates for units. For more information on how payment card fees are posted, contact University Accounting, Credit Card Sales