RBI Slashes Digital Card Transactions Fees
December 07, 2017
In yet another push towards a digital economy, the central bank has introduced differentiated merchant discount rates (MDR) for the debit card payments as per which different caps will apply to small and large traders.
For the small merchants who have an annual turnover below Rs. 20 lakhs, the MDR rate has been set to 0.40% with the maximum charge capped at Rs. 200 per debit card transaction that’s facilitated through PoS terminals.
For the large merchants who have an annual turnover above Rs. 20 lakhs, the MDR rate has been set to 0.90% with the maximum charge capped at Rs. 1000 per debit card transaction.