QUESTION

Medium

Economy

Prelims 2018

Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in the news?

Select an option to attempt

Explanation

The Merchant Discount Rate (MDR) is a fee levied on merchants by payment processors for accepting debit and credit card transactions. It's typically a percentage of the transaction value. So, when a customer uses a debit card at a store, the store pays a fee to the bank that processes the transaction. Hence, option C is the correct answer.

Merchant Rate Discount Process

Merchant Rate Discount Process

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