BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Transaction fee paid to Bank
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Commission paid to merchant
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Discount on product or services
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All of the above
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Detailed explanation-1: -MDR is the rate or amount that a merchant pays for using a lender’s credit card or debit card services for accepting their customers’ bills. Presently, only Rupay-based debit cards and UPI do not attract any MDR charge.
Detailed explanation-2: -The merchant discount rate, or MDR, is the rate charged to a merchant for the payment processing of debit and credit card transactions.
Detailed explanation-3: -Surcharge: This charge is imposed by a merchant on a customer for processing a transaction through a particular payment mode. Some merchants engage in surcharging of digital payments by citing higher MDR expenses, especially in case of credit card transactions.
Detailed explanation-4: -MDR (Merchant Discount Rate) is basically a fee that a merchant is charged by their issuing bank for accepting payments from their customers via credit and debit cards.
Detailed explanation-5: -MDR is charged to the merchants for accepting digital payments. While UPI payments are currently exempted from MDR, credit cards attract the highest MDR between 1%-2% of the total transaction amount.