Business Standard

Doing away with charge levied on merchants may hurt PoS machines deployment

The Budget proposed that businesses with annual turnover of more than Rs 50 crore shall offer low-cost digital modes of payment to their customers

Doing away with charge levied on merchants may hurt PoS machines deployment
Premium

Raghu Mohan
On August 5, a delegation of people drawn from the deployers of the country’s point-of-sale (PoS) machines will call upon senior officials in North Block to give vent to their heartburn — the move to do away with the merchant discount rate (MDR) in the Union Budget. 

The MDR is the charge levied upon merchants every time you transact through the ubiquitous PoS. It is, in turn, shared by the participants in the eco-system which runs this business —issuers, acquirers, the networks (Visa, Mastercard and RuPay), and non-bank deployers. We are talking basis points (bps) here — on a debit card

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 30 2019 | 10:54 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com