Q. Which of the following best describes the term “Merchant Discount Rate (MDR)”, sometimes seen in the news?

[A] The incentive given by a bank to a merchant for accepting payments through debit cards of that bank.

[B] The amount paid back by banks to their customers when they use debit cards for purchasing goods or services.

[C] The charge imposed on a merchant by a bank for accepting payments from customers through debit or credit cards.

[D] The incentive provided by the Government to merchants for promoting digital payments through PoS machines and debit cards.

Answer: C
Notes:

Explanation: Merchant Discount Rate (MDR) is the fee charged to a merchant by a bank for enabling the facility of accepting payments via debit or credit cards.

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