If the customer agrees to bear the bank charge, the customer requests to transfer the full invoice amount plus the negotiated bank charge. This is an Internal rate type.

For example, for a 100 dollar invoice, 5 dollar standard bank charge, and 3 dollar negotiated bank charge, the customer transfers 100 dollars, the full invoice amount. The supplier receives 100 dollars as payment and the customer pays a 3 dollar negotiated bank charge.

If the customer requests to transfer the invoice amount less the standard bank charge, but bears the negotiated bank charge instead, the customer receives the discount merit. This is a Supplier/Standard rate type.

For example, for a 100 dollar invoice, 5 dollar standard bank charge, and 3 dollar negotiated bank charge, the supplier expects to receive 95 dollars. The bank, however, gives the customer a negotiated rate instead; the customer pays 95 dollars for the invoice, 3 dollars for the bank transfer fee, and receives a 2 dollar discount merit.

Because the supplier does not know the bank's negotiated transfer rate, the business custom in Japan is to transfer the invoice less the standard bank charge and account the difference between the standard and negotiated bank charge as miscellaneous income.

If the supplier agrees to bear the bank charge and the customer requests to transfer the full invoice amount less a negotiated bank charge, the result is that the supplier receives a discount merit, the difference between the negotiated bank charge and the standard bank charge. This is a Supplier/Negotiated rate type.

For example, for a 100 dollar invoice, 5 dollar standard bank charge, and 3 dollar negotiated bank charge, the customer transfers the invoice amount less the negotiated bank charge, which is 97 dollars. The supplier bears the negotiated bank charge of 3 dollars, but had expected to bear the standard charge of 5 dollars; the supplier received 97 dollars instead of 95 dollars. The supplier receives a 2 dollar discount merit.