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Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news?
[2018]
- a)The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.
- b)The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.
- c)The charge to a merchant by a bank for accepting payments from his customers through the bank's debit cards.
- d)The incentive given by the Government, to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.
Correct answer is option 'C'. Can you explain this answer?
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Which one of the following best describes the term "Merchant Disc...
Merchant Discount Rate
The Merchant Discount Rate refers to the charge that a merchant has to pay to a bank for accepting payments from customers using debit cards issued by that bank. It is essentially a fee that the merchant has to bear for facilitating electronic transactions.
Importance
- The Merchant Discount Rate plays a crucial role in the digital payment ecosystem as it incentivizes merchants to accept card payments and move towards a cashless economy.
Calculation
- The Merchant Discount Rate is usually calculated as a percentage of the transaction value. This rate is agreed upon between the bank and the merchant, and it may vary depending on various factors such as the type of card used, the transaction volume, and the industry in which the merchant operates.
Impact
- The Merchant Discount Rate can have a significant impact on the profitability of a business, especially for small merchants with low margins. High discount rates may discourage merchants from accepting card payments and hinder the growth of digital transactions.
In conclusion, understanding the Merchant Discount Rate is essential for both merchants and customers as it affects the cost of transactions and influences the adoption of digital payment methods in the economy.
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Which one of the following best describes the term "Merchant Disc...
Merchant Discount Rate (MDR) is the fee borne by the merchant for using credit and debit card payment system. To encourage digital transactions, Ministry of Electronics and information technology (MEITY) had announced that from 1 January 2018 for the next two years, it'll bear the MDR fees of merchants, for payments up-to Rs.2,000/- IF such payment is made via debit card, BHIM or Aadhar enabled payment system.
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Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news?[2018]a)The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.b)The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.c)The charge to a merchant by a bank for accepting payments from his customers through the banks debit cards.d)The incentive given by the Government, to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.Correct answer is option 'C'. Can you explain this answer?
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Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news?[2018]a)The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.b)The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.c)The charge to a merchant by a bank for accepting payments from his customers through the banks debit cards.d)The incentive given by the Government, to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news?[2018]a)The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.b)The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.c)The charge to a merchant by a bank for accepting payments from his customers through the banks debit cards.d)The incentive given by the Government, to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news?[2018]a)The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.b)The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.c)The charge to a merchant by a bank for accepting payments from his customers through the banks debit cards.d)The incentive given by the Government, to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.Correct answer is option 'C'. Can you explain this answer?.
Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news?[2018]a)The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.b)The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.c)The charge to a merchant by a bank for accepting payments from his customers through the banks debit cards.d)The incentive given by the Government, to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news?[2018]a)The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.b)The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.c)The charge to a merchant by a bank for accepting payments from his customers through the banks debit cards.d)The incentive given by the Government, to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news?[2018]a)The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.b)The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.c)The charge to a merchant by a bank for accepting payments from his customers through the banks debit cards.d)The incentive given by the Government, to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news?[2018]a)The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.b)The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.c)The charge to a merchant by a bank for accepting payments from his customers through the banks debit cards.d)The incentive given by the Government, to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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