--- title: What’s Better? Monthly vs. Daily Discount description: Get the pros and cons of monthly vs. daily discount billing cycles and determine what’s best for your merchant account. image: https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/monthly-vs-daily-discount.svg --- [tel:1-800-601-0230](tel:1-800-601-0230) 800-601-0230 - Features - Solutions - Developers - [Pricing](https://www.payjunction.com/payments/pricing.html) - Resources [See a Demo](https://www2.payjunction.com/tour-payjunction) Features - EXPLORE PRODUCTS [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) - ACCEPT PAYMENTS [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH Electronic Checks](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - EXPLORE CAPABILITIES [Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integration Marketplace](https://integrations.payjunction.com/) [Remote Signature](https://www.payjunction.com/payments/signature-capture.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) Solutions - [Veterinary Streamline payment workflows and get paid faster with up-front deposits and payment schedules for high-cost procedures. 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Monthly vs. Daily Discount ![What’s Better? Monthly vs. Daily Discount](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/monthly-vs-daily-discount.svg) [![Picture of Ursula Librizzi](https://blog.payjunction.com/hs-fs/hubfs/Ursula_Librizzi.jpg?width=48&height=48&name=Ursula_Librizzi.jpg) Ursula Librizzi](https://blog.payjunction.com/author/ursula-librizzi) 4/11/2017 When searching for a [Merchant Account Provider](https://blog.payjunction.com/merchant-service-provider-essentials/), you’ll want to consider your billing cycle options. Sometimes it's personal preference, but more often providers ultimately decide the frequency of your billing cycle for you. It’s important to understand your options and the impact they may have on your business. For your convenience, we compare monthly vs. daily discount. ## Monthly vs. Daily Discount On monthly billing, all processing fees are deducted once, typically after the month has closed. Because you’re at the start of a new processing month when you receive your merchant statement, lining up your batch reports and bank deposits is easy; you enjoy a clear picture of what you’re paying. Plus, you have more money throughout the month. A minor drawback to monthly billing is that you pay a large sum at the end of the month. This could be a problem for small businesses where money is tight. ‘Daily discount’ is a misleading term. Because batches may not always settle daily, you may not pay processing fees every day, but the frequency of fee deduction is much higher than monthly billing. Although processing fees are taken from every batch, you’ll still have certain fees due on a monthly basis, such as monthly service fees determined by your provider or pass-through fees charged by major card brands (Visa, MasterCard, Discover and Amex). Although that means fewer fees to pay at the end of the month, it makes [bank account reconciliation](https://blog.payjunction.com/bank-reconciliation-streamlined/) more difficult. Reviewing your statements is a tedious task with daily discount. To determine the total fees paid over the course of the month, the fees charged for every batch must be added to the fees applied at the month’s end. However, the fees applied only at the end of the month are listed on the subsequent month’s statement, so you never have all the fees (both applied daily and at month’s end) on one statement. For example, your January statement will list fees applied for every batch in January, but will include December’s month-end fees. Like we stated earlier, some providers will give you the choice to opt for monthly vs. daily discount, however some providers will require certain businesses to go on daily discount. That could be because the business is high risk, has a history of paying late or failed to pay fees with a previous provider. ## Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! GET DEMO NOW ## Which Is Better? The majority of business owners prefer monthly over daily discount, as charges are easier to decipher and reconciliation is more straightforward. However, the choice may not be up to you, depending on your business type and history. Given the choice between monthly vs. daily discount, consider how you run your business and which option would better fit your needs. ## Have questions about your merchant statements? [![FIND YOUR ANSWERS HERE](https://no-cache.hubspot.com/cta/default/635739/1fef61fb-e421-4e34-b1ca-a2c4948b10ea.png)](https://cta-redirect.hubspot.com/cta/redirect/635739/1fef61fb-e421-4e34-b1ca-a2c4948b10ea) Is your business on monthly or daily discount? Do you like your current setup? Let us know in the comments section below. [Merchant Account](https://blog.payjunction.com/topic/merchant-account) [Questions and Answers](https://blog.payjunction.com/topic/questions-and-answers) --- ##### [![What Is an API?](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/api-payjunction-benefits.svg) What Is an API?](https://blog.payjunction.com/api-payjunction-benefits) ##### [![The Philosophy Behind PayJunction's Engineering Success](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/payjunction-engineering-ethos.svg) The Philosophy Behind PayJunction's Engineering Success](https://blog.payjunction.com/payjunction-engineering-ethos) ###### About Author ![Picture of Ursula Librizzi](https://blog.payjunction.com/hs-fs/hubfs/Ursula_Librizzi.jpg?width=200&height=200&name=Ursula_Librizzi.jpg) ### Ursula Librizzi Ursula is the sales and marketing operations manager for PayJunction. She oversees daily marketing tasks and liaises between the sales and marketing departments. ###### Related Posts ## [![Interchange Downgrades: What They Are and How to Avoid Them](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/interchange-downgrades-unethical-billing.svg) Interchange Downgrades: What They Are and How to Avoid Them Many Merchant Account Providers charge unnecessary fees or have unfair contract terms and conditions, as reported in our unethical practices blog series. Some providers take it a step further by failing to educate business owners about how to qualify for the best transaction rates, which unfortunately results in “Interchange downgrades” that can really add up. Worse yet, some providers make so much money from these downgrades that they hide them in confusing line-item details on statements.](https://blog.payjunction.com/interchange-downgrades-unethical-billing) ## [![Detecting Padded Dues and Credit Card Assessment Fees](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-assessment-fees-unethical-billing.svg) Detecting Padded Dues and Credit Card Assessment Fees Due to the complexity of billing statements, many Merchant Account Providers practice unethical billing. In part four of this series, we will reveal padded dues and credit card assessment fees: another way providers make money by hiding fees from their customers.](https://blog.payjunction.com/credit-card-assessment-fees-unethical-billing) ## [![Processing Refunds? Beware of Additional Fees](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/processing-refunds-fees.svg) Processing Refunds? Beware of Additional Fees Unfortunately, unethical Merchant Account Providers are constantly conjuring up new ways to hide fees and make more money off their customers. Part 5 of this series covered one way providers can be deceptive when your business runs returns. In part 12, we will further explore unethical issues related to refunds. Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! 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