RBI lowers fees on debit card transactions for small merchants

However, charges for merchants with an annual turnover of over Rs 20 lakh are capped at Rs 1,000.

Reserve Bank of India (RBI) has capped charges on debit card transactions for small merchants.
 
The merchants with a yearly turnover of up to Rs 20 lakh will have to pay a maximum fees of Rs 200.
 
Charges for merchants with an annual turnover of over Rs 20 lakh are capped at Rs 1,000.
 
For small merchants, merchant discount rate (MDR) for debit transactions should not exceed 0.4 per cent for physical POS infrastructure including online card transactions.
 
Also, merchant discount rate for debit transactions by small merchants should not exceed 0.3 per cent for QR-based card acceptance infrastructure.
 
For other merchants, MDR for debit transactions should not exceed 0.9% for physical POS infrastructure or 0.8% for QR-based card acceptance infrastructure.
 
The RBI notification released yesterday says these instructions shall be effective from 1 January 2018.
 
Source: RBI

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