in commerce, a term among traders, merchants, and bankers. It is used by the two former on occasion of their buying commodities on the usual time of credit, with a condition that the seller shall allow the buyer a certain discount at the rate of so much per cent. per annum, for the time for which the credit is generally given, upon condition that the buyer pays ready money for such commodities, instead of taking the time of credit. Traders and merchants also frequently taking promissory notes for moneys due payable to them or order at a certain time, and sometimes having occasion for money before the time is elapsed, procure these notes to be discounted by bankers before the time of payment. Bills of exchange are also discounted by bankers; and in this consists one article of the profits of banking. See Bank.