Abstract: A system and method for providing a discount for a credit-based transaction. The system includes a discount credit network wherein a participant holding a transaction card account issued by a card issuer is assigned a membership number that is associated with the participant's transaction card account. The preferred discount credit system also includes a discount authorization processor that is operatively connected to the discount credit network having a database containing the membership numbers and their associated transaction card accounts and processing means for correlating the membership numbers to such associated transaction card accounts. The preferred discount authorization processor is operatively connected to receive discount authorization requests from authorized merchants, correlate such requests to an associated transaction card account and transaction card issuer, and issue a transaction request to that particular transaction card issuer.