Payment Gateway MDR Negotiations

[PM1]

Looking for recommendations on payment gateway for my business, we will have good transaction volumes (₹2-3 crore/month). Wanted to know what is the best possible MDR rates I can get. So far, I have explored Razorpay, Cashfree, and PhonePe, but they have offered only marginal reductions in MDR. I am open to other suggestions or contacts that can help negotiate better rates. And even a benchmark MDR rate I can use for negotiating. Thanks.

 

[drsel]

Looking for recommendations on payment gateway for my business, we will have good transaction volumes (₹2-3 crore/month). Wanted to know what is the best possible MDR rates I can get. So far, I have explored Razorpay, Cashfree, and PhonePe, but they have offered only marginal reductions in MDR. I am open to other suggestions or contacts that can help negotiate better rates. And even a benchmark MDR rate I can use for negotiating. Thanks.

Wow, what business is giving 3 crores every month?

 

[PM1]

Wow, what business is giving 3 crores every month?

2-3 Cr is the GMV, it’s an e-commerce platform.

 

[drvirag]

Speak to hdfc i think they giv best offer

 

[opbamldg]

Checkout Yes Bank

 

[SilentVoyager]

I use HDFC Bank's smarthub vyapar app. It gives 1.2% MDR for credit card.

Pricing-Merchant Discount Rate (MDR)
(1) Credit Card Pricing: 1.2% for up to <=20 lacs and @ 1.65% > 20 lacs
(2) Debit card Pricing: As per RBI Guidelines Per transaction
(3) Commercial card transaction: 2.75% Per transaction

 

[Abhishek012]

I use HDFC Bank's smarthub vyapar app. It gives 1.2% MDR for credit card.

Pricing-Merchant Discount Rate (MDR)
(1) Credit Card Pricing: 1.2% for up to <=20 lacs and @ 1.65% > 20 lacs
(2) Debit card Pricing: As per RBI Guidelines Per transaction
(3) Commercial card transaction: 2.75% Per transaction

What's the merchant category your registered ?

 

[SilentVoyager]

What's the merchant category your registered ?

I have multiple businesses - Software/IT, Retail/Fashion. Basically I use HDFC gateway primarily for these two categories, and trust me it's very good. Apart from very low MDR, they provide next day settelment for credit/debit card transactions (MDR for debit card txn is 0.4% something I think). UPI payments get setteled instantly without any charges.

 

[Sobirvs]

I use HDFC Bank's smarthub vyapar app. It gives 1.2% MDR for credit card.

Pricing-Merchant Discount Rate (MDR)
(1) Credit Card Pricing: 1.2% for up to <=20 lacs and @ 1.65% > 20 lacs
(2) Debit card Pricing: As per RBI Guidelines Per transaction
(3) Commercial card transaction: 2.75% Per transaction

1.65% for us too, but we aren't under smart vypar. We just have HDFC TID, and the POS is of pinelabs. We are above >20L. I am trying to get our rates down to 1% or 1.2%

 

[imdjay]

Applied Razorpay - they are charging - 2% + GST
Applied phonepe - they are free for the first month then 1.9*%

 

[Abhishek012]

I have multiple businesses - Software/IT, Retail/Fashion. Basically I use HDFC gateway primarily for these two categories, and trust me it's very good. Apart from very low MDR, they provide next day settelment for credit/debit card transactions (MDR for debit card txn is 0.4% something I think). UPI payments get setteled instantly without any charges.

CC on UPI also same charges ?

 

[Abhishek012]

Applied Razorpay - they are charging - 2% + GST
Applied phonepe - they are free for the first month then 1.9*%

phonepe - 1.3% for grocery category

 

[SilentVoyager]

1.65% for us too, but we aren't under smart vypar. We just have HDFC TID, and the POS is of pinelabs. We are above >20L. I am trying to get our rates down to 1% or 1.2%

One of my friend has SBI RHODIUM Current Account. He has a payment gateway and PoS with 1% MDR on CC transactions.

 

[SilentVoyager]

CC on UPI also same charges ?

Yes, Rupay CC UPI would attract 1.2% MDR.

 

[theflash]

SBI RHODIUM Current Account

He's already losing on interest due to 50L MAB 🤣.... Although for big businesses with high balances they can lookout for this

 

[PM1]

Checkout Yes Bank

Any idea about their rates? They had quoted me 1.85% and were not willing to negotiate.

 

[PM1]

I use HDFC Bank's smarthub vyapar app. It gives 1.2% MDR for credit card.

Pricing-Merchant Discount Rate (MDR)
(1) Credit Card Pricing: 1.2% for up to <=20 lacs and @ 1.65% > 20 lacs
(2) Debit card Pricing: As per RBI Guidelines Per transaction
(3) Commercial card transaction: 2.75% Per transaction

The app can only generate payment links right? Can't use it as a full PG on websites as far as I understand

 

[PM1]

1.65% for us too, but we aren't under smart vypar. We just have HDFC TID, and the POS is of pinelabs. We are above >20L. I am trying to get our rates down to 1% or 1.2%

Do update if you are able to get it done

 

[NABNAB is verified member.]

Get started with some PG right now, you will be able to negotiate after a while. As soon as they will see the business 😉

 

[knowbie]

Will second @NAB target a few quarters with the lowest you get now. Switch after you have volumes to negotiate