Proposed changes to Merchant Discount Rate

Sushubh

Administrator
[OP]
Oct 29, 2004
420,465
13,129
Gurugram
Pay via debit card: Govt wants RBI to cap MDR on digital payments at Rs 200

Have you faced a situation where a merchant, say, a grocer, has asked you to pay extra because you wanted to pay using a card? That is because for every card swipe at a point of sale (PoS) terminal, the grocer has to pay a fee that is calculated as a percentage of the transaction value. Now, the government is working to reduce Merchant Discount Rate (MDR) charges to encourage digital payments. Finance Minister Arun Jaitley on Monday said compulsion of going digital post note ban has become a habit and e-payments will gather pace on account of government initiatives and technology advancement. In view of this, the government has proposed that the Reserve Bank of India (RBI) cap the merchant discount rate (MDR) on debit card transactions at Rs 200, according to a report published in The Financial Express.
 

webie

Regulars
Aug 21, 2015
389
74
so it can be misused right? Like, let's say I am a merchant and someone has come to me for a 12k transaction from a debit card, and I swipe the customers card for 2k 6 times and save the charges I have to bear?
 

Sushubh

Administrator
[OP]
Oct 29, 2004
420,465
13,129
Gurugram
banks would mark repeated transactions from same source in a short period of time as suspicious :D
bhim already has a limit on number of transactions in one day iirc.
 

webie

Regulars
Aug 21, 2015
389
74
well let's see. For suspicious, well customer can call fraud and have the block removed, it hardly happens in india anyways.
 


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