Acceptance commission is the fee charged by a bank for agreeing to accept and guarantee payment of a bill of exchange on behalf of its customer.

When a bank “accepts” a bill:

It promises to pay the amount on the due date

The bill becomes safer and more trustworthy

The seller can easily discount it

For providing this guarantee, the bank charges a small percentage as acceptance commission.

In simple terms, acceptance commission is the bank’s fee for guaranteeing payment of a bill of exchange.