Merchant Discount Rate MDR

'RuPay credit card UPI to see good traction if small merchant transaction stays within 10%'

Payment aggregators have received nothing, says Vishwas Patel as RBI discussion paper starts debate

UPI charges may partially offset loss on credit card MDR

According to analysts, SBI Card and Paytm stand to gain the most if RBI agrees to levy 2% merchant discount rate (MDR) on RuPay-based credit cards linked to UPI

NPCI set to seek RBI nod for scheme; free swipes at smaller outlets

Smaller merchants can be subsidised to make it work

Payment companies like Visa and Mastercard have been seeking a level playing field with RuPay, claiming the government is favouring the latter

Others say central bank may relook zero merchant discount rate on RuPay, UPI

The move is part of the Budget proposal, where the government has earmarked Rs 1,500 crore for the promotion of digital payments this fiscal

India has some 5.2 million PoS units, but a country of our size needs more, DEEPAK CHANDNANI, managing director, Worldline (South Asia and the Middle East), tells Raghu Mohan

Removal of MDR will affect innovation in fintech

Finance Minister Nirmala Sitharaman last month said no Merchant Discount Rate (MDR) charges will be applicable on transactions through homegrown RuPay and UPI platforms

The Budget proposed that businesses with annual turnover of more than Rs 50 crore shall offer low-cost digital modes of payment to their customers

But the move will hit the earnings of banks and PoS providers

The outgo on account of reimbursement for MDR charges is estimated to be Rs 2,512 cr over the next two years

The merchant discount rate needs to be carefully balanced