{"id":86133,"date":"2019-07-12T16:37:15","date_gmt":"2019-07-12T11:07:15","guid":{"rendered":"http:\/\/factly.forumias.com\/?p=7991"},"modified":"2019-07-12T16:37:15","modified_gmt":"2019-07-12T11:07:15","slug":"payment-service-providers-fear-shutdownask-govt-to-pay-mdr","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/payment-service-providers-fear-shutdownask-govt-to-pay-mdr\/","title":{"rendered":"Payment service providers fear shutdown,ask govt to pay MDR"},"content":{"rendered":"\n<ol class=\"wp-block-list\"><li>Payment Council of India(PCI) has said that the budget proposal to remove the merchant discount rate(MDR) will lead to the collapse of the payment acquiring industry.<\/li><li><strong>MDR<\/strong> is a fee charged from a merchant by a bank for accepting payments from customers through credit and debit cards in their establishments.<\/li><li>Currently,there is a provision to get a merchant discount rate of up to two percent on every digital transaction which helps the intermediaries recover the cost of setting up the infrastructure.<\/li><li>However,the budget has proposed that zero MDR will be applicable to businesses with a turnover of \u20b950 crore that facilitate low-cost digital payment modes such as BHIM, UPI,QR code among others.<\/li><li>Further,experts have said that this proposal will affect non-bank payment service providers(PSPs) like aggregators\/ processors who will be forced to shut down if there is no commercial model.<\/li><li>Payment providers have also said that multiple digital payments reports over decades have also never recommended zero MDR.They have said various reports have recommended market-based pricing with support and focus to drive merchant acquiring.&nbsp;<\/li><li>The recent RBI Vision 2019-21 document has also recommended creating some additional efficiency wherever possible in costs and not eliminating the MDR.<\/li><li>The <strong>Payments Council of India(PCI) <\/strong>was formed under the aegis of Internet and Mobile Association of India(IAMAI) in the year 2013 catering to the needs of the digital payment industry.<\/li><li>The Council was formed for the purposes of representing the various regulated non-banking payment industry players,to address and help resolve various industry level issues and barriers which require discussion and action.<\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Payment Council of India(PCI) has said that the budget proposal to remove the merchant discount rate(MDR) will lead to the collapse of the payment acquiring industry. MDR is a fee charged from a merchant by a bank for accepting payments from customers through credit and debit cards in their establishments. Currently,there is a provision to&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/payment-service-providers-fear-shutdownask-govt-to-pay-mdr\/\">Continue reading <span class=\"screen-reader-text\">Payment service providers fear shutdown,ask govt to pay MDR<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[3675,3676],"class_list":["post-86133","post","type-post","status-publish","format-standard","hentry","category-economy","tag-merchant-discount-rate","tag-payment-council-of-india","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704703669},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86133","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=86133"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86133\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=86133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=86133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=86133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}