Q. With respect to the Merchant Discount Rate (MDR), consider the following statements:
1.It is a fee that businesses pay to payment processors for the service of accepting digital payments.
2.It applies on the digital transactions made through UPIs but not when same is done through debit cards.
Which of the statements given above is/are correct?
Answer: A
Notes:
Explanation: Only Statement 1 is correct
Statement 1 is correct: The Merchant Discount Rate (MDR) is a fee that businesses, including merchants, must pay to payment processing companies for facilitating transactions.
Statement 2 is incorrect: It is done through digital payment methods such as credit cards, debit cards, and Unified Payments Interface (UPI).
Source: MoneyControl
