{"id":6615,"date":"2025-06-13T12:34:23","date_gmt":"2025-06-13T07:04:23","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=6615"},"modified":"2025-06-13T13:38:46","modified_gmt":"2025-06-13T08:08:46","slug":"what-is-merchant-discount-rate","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/what-is-merchant-discount-rate\/","title":{"rendered":"Merchant Discount Rate"},"content":{"rendered":"<h2><span style=\"font-weight: 400;\">Merchant Discount Rate Latest News<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Recently, the Finance Ministry has said that speculation and claims that the Merchant Discount Rate (MDR) will be charged on UPI transactions are completely false, baseless, and misleading. \u00a0 \u00a0 <\/span><\/p>\n<h2><span style=\"font-weight: 400;\">About Merchant Discount Rate<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is a fee that merchants and other businesses must pay to a <\/span><b>payment processing company for accepting payments<\/b><span style=\"font-weight: 400;\"> from customers via digital modes <\/span><b>like credit cards, debit cards, UPI, etc.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MDR compensates the bank issuing the card, the bank which installs the PoS (Point of Sale) terminal and network providers, and payment gateways for their services.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The MDR sums up all the charges and taxes that electronic or digital payments entail.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The MDR typically comes in the form of a percentage of the transaction amount. It is <\/span><b>typically between 1% and 3%.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The rates are dependent on the <\/span><b>level of business transactions being processed<\/b><span style=\"font-weight: 400;\">, the types of cards (debit or credit) used by customers, and the value of the average transaction (also known as average tickets or average sales).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Before accepting debit and credit cards, merchants must set up this service and agree to the rate.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Merchants must consider these fees as part of managing their business costs and setting their prices.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MDR charges are <\/span><b>automatically deducted from the merchant\u2019s account<\/b><span style=\"font-weight: 400;\"> at the time of settling the transaction batch.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under the <\/span><b>rules laid down by RBI<\/b><span style=\"font-weight: 400;\">, business owners <\/span><b>cannot pass<\/b><span style=\"font-weight: 400;\"> on the MDR charges to <\/span><b>their customers.<\/b><\/li>\n<\/ul>\n<p><b>Source:<\/b> <a href=\"https:\/\/www.newsonair.gov.in\/finance-ministry-says-there-is-no-plan-to-levy-mdr-charge-on-upi-transactions\/\" target=\"_blank\" rel=\"nofollow noopener\">NA<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Merchant Discount Rate (MDR) is a fee paid by businesses to payment processors for accepting digital payments via credit cards, debit cards, UPI, and more.<\/p>\n","protected":false},"author":5,"featured_media":6616,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[822,21,22,23],"class_list":{"0":"post-6615","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-merchant-discount-rate","9":"tag-prelims-pointers","10":"tag-upsc-current-affairs","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/6615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=6615"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/6615\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/6616"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=6615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=6615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=6615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}