Come April 2017, RBI has plans to bring down the Merchant Discount Rates on debit card transactions. The plans are to rationalise the charges on the basis of merchant turnover rather than the slab rate followed at present. The rates will also differ for general transactions and Government transactions.
The proposed changes are:
|Transactions Up to Rs. 2000
|Does not attract a charge now, but this will end by March 31, 2017.
|Transactions with an yearly turnover below Rs. 20 lakhs which is termed as Small merchants
|Not more than 0.4 per cent with physical point of sales infrastructure and 0.3 percent for digital transactions. Same shall be applicable for special categories of merchants such as utilities, hospitals or toll collection points.
|Government transactions, Special categories of merchants and all other categories with turnover within the ambit of GST (annual turnover above Rs. 20 lakh) newly created as Large Merchants.
|Could be as much as 0.95 per cent of the transaction amount. For Government Transactions, 0.5 percent of those above Rs. 2000 with a cap of Rs. 250. For transactions below Rs. 2000 a flat charge up to Rs. 10.