RBI Cuts Merchant Discount Rate For Debit Card Transactions

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New Delhi: Reserve Bank of India on Wednesday announced capping of charges on debit card transaction at Rs 200 for small merchants (with turnover upto Rs 20 lakh).

Charges are capped at Rs 1,000 for merchants with over Rs 20 lakh annual turnover.
For small merchants, merchant discount rate for debit transactions should not exceed 0.4% for physical POS infrastructure.

For small merchants, merchant discount rate for debit transactions should not exceed 0.3% for QR-based card acceptance infrastructure.

For other merchants, MDR for debit transactions should not exceed 0.8% for QR-based card acceptance infrastructure.

For other merchants, MDR for debit transactions should not exceed 0.9% for physical POS infrastructure.

The above instructions shall be effective from January 1, 2018.