when merchants and other businesses want to accept payments from debit or credit cards they must first set up an account with a payment processing company payment processors serve as intermediaries between a business and the various banks that issue debit and credit cards the merchant discount rate is what the business pays for their services 
payment processors have well established infrastructures and fee schedule arrangements in place to support all types of merchant payments most local and e commerce merchants can expect to pay a 1 to 3 fee for payment processing of each transaction 