Discount

a deduction made in the payment of a bill or settlement of an account for ready or prompt payment; a sum deducted at a certain rate per cent. from the credit price of any article in consideration of prompt payment. The term discount is applied both to the amount deducted and the rate per cent. at which the deduction is calculated or allowed. Discount in banking is a charge made at a certain Tate per cent. for the interest of money advanced on a bill or other document due at some future time.