up to Rs 2,000 do not attract a charge but this is to end on March 31.
The central bank issued draft guidelines on its website that propose the MDR
be “on the basis of merchant turnover, rather than the present slab-rate based on transaction value”.
Besides, there should be differentiated MDR
for the government and QR-code related transactions.
Also, “there is a need to differentiate MDR
between acquiring infrastructure involving physical terminals, including mobile point-of-sale, or mPOS, and digital acceptance infrastructure models such as QR code”.
proposes that where a merchant is willing to pay upfront for the card acceptance infrastructure, the MDR
has to be on the lower side.
The draft proposes different categories of merchants, based on the categories proposed in the coming goods and services tax (GST). For example, a merchant with yearly turnover below Rs 20 lakh could be termed small. Other categories such as government transactions, special categories of merchants and all other categories with turnover within the ambit of GST
(turnover above Rs 20 lakh yearly) should be created.
For small merchants, MDR
should be not more than 0.4 per cent with physical point-of-sales infrastructure and 0.3 per cent for digital transactions.
The same limit for special categories of merchants such as utilities, hospitals or toll collection points.
For large merchants, the MDR
could be as much as 0.95 per cent of the transaction amount. For government transactions, 0.5 per cent of those above Rs 2,000, with a cap of Rs 250. For transactions
below Rs 2,000, a flat charge up to Rs 10.