MDR Charges Explained in a Simple way
Nowadays, In this digital era many people using debit card and credit card for payment in store or ecommerce platform. For this payment a charge is charged for transactions made through these cards, which is called MDR or Merchant Discount Rate.
What is MDR Charges: MDR is a fee or commission that deduct when shopkeeper or a merchant has to pay when someone makes a payment at their shop via debit/credit card or rupay_credit_cardupi. This money is usually shared between the bank, payment gateway and card companies.
Who bears this charges: Commonly this is paid by shopkeeper or merchants However, in some cases they pass this charges to a customer.
Percentage of MDR Charges:
| Payment Types | MDR Charges (%) |
|---|---|
| Net Banking | 0 |
| UPI | 0 |
| CC_UPI | 0-2000 is free, greater than 2000 is 1.99 + 18% GST |
| Advanced Deposit Account Card | 0 |
| Normal Credit Card | 1.75 + 18% GST |
| Corporate Credit Card | 2.75 + 18% GST |
| Diners Credit Card | 2.99 + 18% GST |
| Super Premium Credit Card (ONE CARD) | 2.4 + 18% GST |
| Debit Card | 0.4 + 18% GST |
| Rupay Debit Card | 0 |
| Prepaid Debit Card | 2.2 + + 18% GST |
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Why is MDR charged?
This charge is levied to cover the service costs and security of banks and payment processing companies.
