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Which of the following statements provides the most accurate description of the term "Merchant Discount Rate"?
- a)It refers to the reward provided by a bank to a merchant as an encouragement for accepting payments made through debit cards associated with that specific bank.
- b)It is the amount reimbursed by the banks to their customers when they utilise debit cards for financial transactions while purchasing goods or services.
- c)It is the fee that a merchant is charged by its issuing bank for accepting payments from its customers via credit and debit cards.
- d)It is the incentive offered by the government to the merchants for promoting digital payments made 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 of the following statements provides the most accurate descripti...
Merchant Discount Rate
The Merchant Discount Rate (MDR) is the fee that a merchant has to pay to its acquiring bank for accepting payments from customers via credit and debit cards. It is a percentage of the transaction amount that is deducted from the final payment made to the merchant. Here are some key points to understand MDR:
Definition:
- MDR is the fee charged by the acquiring bank to the merchant for processing card transactions.
- It is usually borne by the merchant and is a cost associated with accepting electronic payments.
Calculation:
- MDR is calculated as a percentage of the transaction amount plus a fixed fee per transaction.
- The percentage and fixed fee vary depending on factors such as the type of card used (credit or debit) and the card network (Visa, MasterCard, etc.).
Impact on Merchant:
- MDR can impact a merchant's profitability, especially for small businesses with low-margin products.
- Merchants may choose to pass on the MDR to customers by charging a convenience fee for card payments.
Regulation:
- In some countries, regulators have imposed caps on MDR to protect merchants from high fees.
- The government may also provide incentives to promote digital payments and reduce the burden of MDR on merchants.
Overall, understanding the concept of MDR is important for merchants to manage their costs effectively and optimize their payment acceptance strategies.
The Merchant Discount Rate (MDR) is the fee that a merchant has to pay to its acquiring bank for accepting payments from customers via credit and debit cards. It is a percentage of the transaction amount that is deducted from the final payment made to the merchant. Here are some key points to understand MDR:
Definition:
- MDR is the fee charged by the acquiring bank to the merchant for processing card transactions.
- It is usually borne by the merchant and is a cost associated with accepting electronic payments.
Calculation:
- MDR is calculated as a percentage of the transaction amount plus a fixed fee per transaction.
- The percentage and fixed fee vary depending on factors such as the type of card used (credit or debit) and the card network (Visa, MasterCard, etc.).
Impact on Merchant:
- MDR can impact a merchant's profitability, especially for small businesses with low-margin products.
- Merchants may choose to pass on the MDR to customers by charging a convenience fee for card payments.
Regulation:
- In some countries, regulators have imposed caps on MDR to protect merchants from high fees.
- The government may also provide incentives to promote digital payments and reduce the burden of MDR on merchants.
Overall, understanding the concept of MDR is important for merchants to manage their costs effectively and optimize their payment acceptance strategies.
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Which of the following statements provides the most accurate descripti...
The Merchant Discount Rate (MDR) refers to a fee that a merchant is charged by its issuing bank for accepting payments from its customers via credit and debit cards. It is also known as the Transaction Discount Rate (TDR). While the card-issuing bank gets a share of it, the remaining amount is distributed between the payment network and the Point-of-Sale terminal providers.
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Which of the following statements provides the most accurate description of the term "Merchant Discount Rate"?a)It refers to the reward provided by a bank to a merchant as an encouragement for accepting payments made through debit cards associated with that specific bank.b)It is the amount reimbursed by the banks to their customers when they utilise debit cards for financial transactions while purchasing goods or services.c)It is the fee that a merchant is charged by its issuing bank for accepting payments from its customers via credit and debit cards.d)It is the incentive offered by the government to the merchants for promoting digital payments made 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 of the following statements provides the most accurate description of the term "Merchant Discount Rate"?a)It refers to the reward provided by a bank to a merchant as an encouragement for accepting payments made through debit cards associated with that specific bank.b)It is the amount reimbursed by the banks to their customers when they utilise debit cards for financial transactions while purchasing goods or services.c)It is the fee that a merchant is charged by its issuing bank for accepting payments from its customers via credit and debit cards.d)It is the incentive offered by the government to the merchants for promoting digital payments made 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 of the following statements provides the most accurate description of the term "Merchant Discount Rate"?a)It refers to the reward provided by a bank to a merchant as an encouragement for accepting payments made through debit cards associated with that specific bank.b)It is the amount reimbursed by the banks to their customers when they utilise debit cards for financial transactions while purchasing goods or services.c)It is the fee that a merchant is charged by its issuing bank for accepting payments from its customers via credit and debit cards.d)It is the incentive offered by the government to the merchants for promoting digital payments made 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 of the following statements provides the most accurate description of the term "Merchant Discount Rate"?a)It refers to the reward provided by a bank to a merchant as an encouragement for accepting payments made through debit cards associated with that specific bank.b)It is the amount reimbursed by the banks to their customers when they utilise debit cards for financial transactions while purchasing goods or services.c)It is the fee that a merchant is charged by its issuing bank for accepting payments from its customers via credit and debit cards.d)It is the incentive offered by the government to the merchants for promoting digital payments made by their customers through Point-of-Sale (PoS) machines and debit cards.Correct answer is option 'C'. Can you explain this answer?.
Which of the following statements provides the most accurate description of the term "Merchant Discount Rate"?a)It refers to the reward provided by a bank to a merchant as an encouragement for accepting payments made through debit cards associated with that specific bank.b)It is the amount reimbursed by the banks to their customers when they utilise debit cards for financial transactions while purchasing goods or services.c)It is the fee that a merchant is charged by its issuing bank for accepting payments from its customers via credit and debit cards.d)It is the incentive offered by the government to the merchants for promoting digital payments made 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 of the following statements provides the most accurate description of the term "Merchant Discount Rate"?a)It refers to the reward provided by a bank to a merchant as an encouragement for accepting payments made through debit cards associated with that specific bank.b)It is the amount reimbursed by the banks to their customers when they utilise debit cards for financial transactions while purchasing goods or services.c)It is the fee that a merchant is charged by its issuing bank for accepting payments from its customers via credit and debit cards.d)It is the incentive offered by the government to the merchants for promoting digital payments made 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 of the following statements provides the most accurate description of the term "Merchant Discount Rate"?a)It refers to the reward provided by a bank to a merchant as an encouragement for accepting payments made through debit cards associated with that specific bank.b)It is the amount reimbursed by the banks to their customers when they utilise debit cards for financial transactions while purchasing goods or services.c)It is the fee that a merchant is charged by its issuing bank for accepting payments from its customers via credit and debit cards.d)It is the incentive offered by the government to the merchants for promoting digital payments made 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 of the following statements provides the most accurate description of the term "Merchant Discount Rate"?a)It refers to the reward provided by a bank to a merchant as an encouragement for accepting payments made through debit cards associated with that specific bank.b)It is the amount reimbursed by the banks to their customers when they utilise debit cards for financial transactions while purchasing goods or services.c)It is the fee that a merchant is charged by its issuing bank for accepting payments from its customers via credit and debit cards.d)It is the incentive offered by the government to the merchants for promoting digital payments made 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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Which of the following statements provides the most accurate description of the term "Merchant Discount Rate"?a)It refers to the reward provided by a bank to a merchant as an encouragement for accepting payments made through debit cards associated with that specific bank.b)It is the amount reimbursed by the banks to their customers when they utilise debit cards for financial transactions while purchasing goods or services.c)It is the fee that a merchant is charged by its issuing bank for accepting payments from its customers via credit and debit cards.d)It is the incentive offered by the government to the merchants for promoting digital payments made by their customers through Point-of-Sale (PoS) machines and debit cards.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Which of the following statements provides the most accurate description of the term "Merchant Discount Rate"?a)It refers to the reward provided by a bank to a merchant as an encouragement for accepting payments made through debit cards associated with that specific bank.b)It is the amount reimbursed by the banks to their customers when they utilise debit cards for financial transactions while purchasing goods or services.c)It is the fee that a merchant is charged by its issuing bank for accepting payments from its customers via credit and debit cards.d)It is the incentive offered by the government to the merchants for promoting digital payments made by their customers through Point-of-Sale (PoS) machines and debit cards.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Which of the following statements provides the most accurate description of the term "Merchant Discount Rate"?a)It refers to the reward provided by a bank to a merchant as an encouragement for accepting payments made through debit cards associated with that specific bank.b)It is the amount reimbursed by the banks to their customers when they utilise debit cards for financial transactions while purchasing goods or services.c)It is the fee that a merchant is charged by its issuing bank for accepting payments from its customers via credit and debit cards.d)It is the incentive offered by the government to the merchants for promoting digital payments made by their customers through Point-of-Sale (PoS) machines and debit cards.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Which of the following statements provides the most accurate description of the term "Merchant Discount Rate"?a)It refers to the reward provided by a bank to a merchant as an encouragement for accepting payments made through debit cards associated with that specific bank.b)It is the amount reimbursed by the banks to their customers when they utilise debit cards for financial transactions while purchasing goods or services.c)It is the fee that a merchant is charged by its issuing bank for accepting payments from its customers via credit and debit cards.d)It is the incentive offered by the government to the merchants for promoting digital payments made by their customers through Point-of-Sale (PoS) machines and debit cards.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
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