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Retailers Unhappy with Increased MDR Rates for Card Transactions
December 11, 2017
As the government has increased the Merchant Discount Rate (MDR), with effect from January 2018, the merchants may encourage cash payments over digital payments.
Retailers Association of India Chief Executive Kumar Rajagopalan said that every business with an annual turnover above Rs. 20 lakh will be affected by the new rate and is likely to push for cash transactions.
As per the revised rate, shops with an annual revenue above Rs. 20 lakh will have to pay MDR of 0.9% on each purchase value or Rs. 1000, whichever is lower. The current MDR is 0.25% for transactions below Rs. 1,000, and 0.5% for those ranging between Rs. 1,000 and Rs. 2,000.
