Merchant discount rate on debit cards is the amount that a merchant has to pay to its service providers when a consumer swipes her card on the merchant’s point of sales terminal. It is also applicable for online transactions and QR based transactions. The amount that the merchant pays for every transaction gets distributed among three stakeholders—the bank that enables the transaction, the vendor that installs the PoS machine and the card network provider such as Visa or MasterCard.
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