Negotiating or discounting fee
The discounting or credit advance payment fee is charged for the service provided when a credit institution provides its customers with an advance payment in return for collecting payment of some form of documentary credit, which the bank receives with recourse, i.e. subject to its due collection. The negotiable instruments concerned may include bills of exchange and promissory notes, or other documents such as receipts or invoices. Discounting arrangements may be ad hoc or regular.