Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news?

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CollectorBabu · Accepted Answer

Correct Answer: The charge to a merchant by a bank for accepting payments from his customers through the bank's debit cards.. Merchant Discount Rate Merchant Discount Rate (alternatively referred to as the Transaction Discount Rate or TDR) is the sum total of all the charges and taxes that a digital payment entails. It is expressed in percentage of the transaction amount. The amount that the merchant pays for every transaction gets distributed among three stakeholders- the bank that enables the transaction, the vendor that installs the point of sale (PoS) machine and the card network provider, such as Visa, MasterCard, RuPay. Since 1st January 2020, businesses with an annual turnover of more than ₹50 crores are offering low-cost digital payment options to customers and Merchant Discount Rate (MDR) are not being levied on either customers or merchants.

Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news?

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