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Discount Bank

Truth:

Other than the term being incorporated into the name of a bank, such as "The SoAndSo Discount Bank", there is no financial institution that is specifically called a discount bank.

There are international trade departments within banks that specialize in discounting trade instruments.  This falls under the calling of trade finance, wherein a bank will purchase trade documents such as a LETTER OF CREDIT for less than the full value, taking over all the responsibilities of collection from the owner.  This is also referred to as factoring or FORFAITING.

Scam: 

Con artists tout "discount banks" as a place where one may purchase Letters of Credit or PRIME BANK GUARANTEES at unrealistic discounts, then sell them for full value in the SECONDARY MARKET.

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