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Proposed debit card rate not lucrative, says PCI

PCI adds, further reduction in MDR will discourage future investments, affecting e-payments industry

Abhijit Lele  |  Mumbai 

Photo: Shutterstock
Photo: Shutterstock

The rate structure proposed by (RBI) on using debit cards for electronic payments is not remunerative. Further reduction in (MDR) will discourage future investments and adversely affect growth of industry, according to (PCI). is the rate charged to a merchant for using digital-services.   

has proposed that small merchants may not pay more than 0.4 per cent of the value for physical (point of sale) and 0.3 per cent towards digital  

All other categories of merchants (apart from government) may not pay more than 0.95 and 0.85 per cent of value for physical and digital PoS, respectively. Currently, charges on transactions stand at below 0.75 per cent for transactions less than Rs 2,000 and under one per cent for those above Rs 2,000.

said the proceeds from were tilted towards card-issuing and did not leave any margins for acquirers and payment processors. The group hopes will ensure equitable distribution of proceeds from among all players in the ecosystem, added.

The acquirers have been investing in giving small merchants access to These non-banking payment entities take the responsibility of not only providing the infrastructure but also managing merchant's evaluation, servicing, risk management, and education, and is the only source of revenue for these payment companies.

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Proposed debit card rate not lucrative, says PCI

PCI adds, further reduction in MDR will discourage future investments, affecting e-payments industry

PCI adds, further reduction in MDR will discourage future investments, affecting e-payments industry
The rate structure proposed by (RBI) on using debit cards for electronic payments is not remunerative. Further reduction in (MDR) will discourage future investments and adversely affect growth of industry, according to (PCI). is the rate charged to a merchant for using digital-services.   

has proposed that small merchants may not pay more than 0.4 per cent of the value for physical (point of sale) and 0.3 per cent towards digital  

All other categories of merchants (apart from government) may not pay more than 0.95 and 0.85 per cent of value for physical and digital PoS, respectively. Currently, charges on transactions stand at below 0.75 per cent for transactions less than Rs 2,000 and under one per cent for those above Rs 2,000.

said the proceeds from were tilted towards card-issuing and did not leave any margins for acquirers and payment processors. The group hopes will ensure equitable distribution of proceeds from among all players in the ecosystem, added.

The acquirers have been investing in giving small merchants access to These non-banking payment entities take the responsibility of not only providing the infrastructure but also managing merchant's evaluation, servicing, risk management, and education, and is the only source of revenue for these payment companies.
image
Business Standard
177 22

Proposed debit card rate not lucrative, says PCI

PCI adds, further reduction in MDR will discourage future investments, affecting e-payments industry

The rate structure proposed by (RBI) on using debit cards for electronic payments is not remunerative. Further reduction in (MDR) will discourage future investments and adversely affect growth of industry, according to (PCI). is the rate charged to a merchant for using digital-services.   

has proposed that small merchants may not pay more than 0.4 per cent of the value for physical (point of sale) and 0.3 per cent towards digital  

All other categories of merchants (apart from government) may not pay more than 0.95 and 0.85 per cent of value for physical and digital PoS, respectively. Currently, charges on transactions stand at below 0.75 per cent for transactions less than Rs 2,000 and under one per cent for those above Rs 2,000.

said the proceeds from were tilted towards card-issuing and did not leave any margins for acquirers and payment processors. The group hopes will ensure equitable distribution of proceeds from among all players in the ecosystem, added.

The acquirers have been investing in giving small merchants access to These non-banking payment entities take the responsibility of not only providing the infrastructure but also managing merchant's evaluation, servicing, risk management, and education, and is the only source of revenue for these payment companies.

image
Business Standard
177 22