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Which Bank/Service provider offers lowest MDR?

  • Thread starter Thread starter rdargar
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rdargar

rdargar

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I am self employed individual.
I am looking to accept payment via link (No website) ; The main reason is two of our customers are saying they wish to use their CC to make payment and they are high valued customers and loyalty can't be expected in today's time.
I previously wrote post but not much responses.
I am open to opening a fresh current account the receivables will be in the range of 1-3 Lakh (Aggregate)(50-90k size) . I have read people'smoney got blocked.
I will not be using my CC to make payment , but at the same time I do not want the hassle.

What's the best solution.
For beggining I started using Stripe but they settle after 2 weeks and a hefty 2% flat charge.
 
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BRB said:
I am thinking about acquiring a business which has transactions in the range of 8 to 15 lakhs per month. Currently the cash transactions are in the range of 2 lakhs and the digital transactions are in the range of 8 lakhs and above. Which current account do you think I should take? Any suggestions? I was thinking of going ahead with HDFC. Haven't decided which account yet. Also I have to take a POS Machine with the lowest MDR. I was looking for the Pine Labs machine and also @Tejo suggested the same and to get the PineLabs machine from HDFC while opening the current account.

Any suggestions would be highly appreciated from other fellow members.🙌
Click to expand...
HDFC is providing lower MDR than ICICI. If u want lowest mdr then go for HDFC. If u want better technology and integration, connected banking etc. then stick with ICICI. Dont forget to ask for choice account number.
 
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With sbi, I recently talked to someone that if you will maintain a Diamond Current Account with them with AMB of 5.00 lacs, then they will offer MDR as low as 1.2% with zero bank charges for everything.

However, interest costs negate the whole deal.

Just in case, you were not going to operate an overdraft account, then this could be a workable option.

By the way, if your business does not include the other business transactions, as mentioned in the table, then I think Icici is offering a good deal.

Thanks!!
 
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RaviAgl said:
Hdfc has revised mdr to 1.65% +gst for all old merchants since 20.10.23

Icici is asking for 1.85% +gst as of now.

So if you get a deal anywhere for 1.20% to 1.50%, take it in my opinion.

I think that the minimum mdr is to stay at 1.50% as per current market.

Thanks!!
Click to expand...
So there are chances that they can provide a lesser MDR than the 1.65% + GST that they are providing to others if I talk to them and come to a deal?
How does it work?
On what basis do they finalise the MDR rates or give discounts? Does it depend on the transactions done on the machine on a monthly basis?
If yes, is 10 lakhs a month a good amount to negotiate and ask for MDR in the range of 1.20% + GST as mentioned by you?

Thanks!
 
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BRB said:
So there are chances that they can provide a lesser MDR than the 1.65% + GST that they are providing to others if I talk to them and come to a deal?
How does it work?
On what basis does they finalise the MDR rates or give discounts? Does it depend on the transactions done on the machine on a monthly basis?
If yes, is 10 lakhs a month a good amount to negotiate and ask for MDR in the range of 1.20% + GST as mentioned by you?

Thanks!
Click to expand...

Yes your monthly transactions done on the terminal decide what rate you get. The more, the merrier.

If it is approximately 10Lacs per month, they should be able to give you 1.40% easily (if already you have a good relationship, then it should be achievable). You can pull them down to 1.25% if possible but may need to give them an RD or FD or some insurance business so that they can negotiate with their bosses.

Regarding different rates, it depends from bank to bank. The Icici offer table, you posted here, I have not seen anywhere before.

For hdfc generally it is
Rupay debit cards- 0%
Debit cards less than Rs 2000 - 0.4%
Debit cards >= Rs 2000 - 0.9%
Normal Credit Cards - 1.2% to 2.25%
Commercial or business or international cards - 2.75%
Amex - 1.65% to 1.90%

As per icici table, you will see that other than normal cards, rates are similar for most cards.

Thanks!!
 
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RaviAgl said:
Yes your monthly transactions done on the terminal decide what rate you get. The more, the merrier.

If it is approximately 10Lacs per month, they should be able to give you 1.40% easily (if already you have a good relationship, then it should be achievable). You can pull them down to 1.25% if possible but may need to give them an RD or FD or some insurance business so that they can negotiate with their bosses.

Regarding different rates, it depends from bank to bank. The Icici offer table, you posted here, I have not seen anywhere before.

For hdfc generally it is
Rupay debit cards- 0%
Debit cards less than Rs 2000 - 0.4%
Debit cards >= Rs 2000 - 0.9%
Normal Credit Cards - 1.2% to 2.25%
Commercial or business or international cards - 2.75%
Amex - 1.65% to 1.90%

As per icici table, you will see that other than normal cards, rates are similar for most cards.

Thanks!!
Click to expand...
Let me talk to my RM at HDFC and see what he can offer. Thanks a lot for the suggestions. Cheers!!
 
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RaviAgl said:
Hdfc has revised mdr to 1.65% +gst for all old merchants since 20.10.23

Icici is asking for 1.85% +gst as of now.

So if you get a deal anywhere for 1.20% to 1.50%, take it in my opinion.

I think that the minimum mdr is to stay at 1.50% as per current market.

Thanks!!
Click to expand...
hello all
I'm currently using kotak pos is with mdr of 1.35 plus gst
 
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Abhishek012 said:
Not recommended, just share this info, try at your own risk -

Use pinelabs online payment gateway.

Pinelabs have 80% market share on offline market. All big brands use pinelabs POS machine because of pinelabs's lowest MDR charges under 1.5%.

I dnt know how Pinelabs online payment gateway work but here is the website -

Online Payment Gateway: Best Indian Payment Gateway | Pine Labs

Pine Labs is the leading online international payment gateway solutions provider in India, enabling eCommerce businesses to accept and integrate payment gateway with 100+ payment modes. Discover now!
www.pinelabs.com www.pinelabs.com

or direct official link here (plural by pinelabs) -

https://www.pluralonline.com/
Click to expand...

My dad's business is offline, card charging annually is b/w 10-15cr, and monthly is 10-70L

Daily can be b/w 1L-10L.

HDFC has given us 1.65%+GST
Pinelabs have their TID with RBL and is giving us 1.85%+GST.
We have a 7 year old relationship with Pinelabs, and with HDFC 10yrs+ We replaced HDFC machine with pinelabs but HDFC TID and RBL TID is connected with POS.

How much can we negotiate?
 
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Sobirvs said:
My dad's business is offline, card charging annually is b/w 10-15cr, and monthly is 10-70L

Daily can be b/w 1L-10L.

HDFC has given us 1.65%+GST
Pinelabs have their TID with RBL and is giving us 1.85%+GST.
We have a 7 year old relationship with Pinelabs, and with HDFC 10yrs+ We replaced HDFC machine with pinelabs but HDFC TID and RBL TID is connected with POS.

How much can we negotiate?
Click to expand...
Talk to Pinelabs or change your Pinelabs acquirer bank partner.
 
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Abhishek012 said:
Talk to Pinelabs or change your Pinelabs acquirer bank partner.
Click to expand...

That's what I don't understand. My brother doesn't get this at all and father is worse than him, they have no idea what "acquirer bank" even is.

So I did some digging. We have HDFC TID and RBL's TID in that terminal. Idk why we have 2 but apparently we do. I talked to pinelabs and they said RBL's TID is given by them however HDFC's TID is of HDFC that has been linked to Pinelabs. Idk who did that and why that happened. Brother said they has POS with HDFC once but he gave up that POS coz Pinelabs machine has alot of brand EMI options that customer love hence he prefer pinelabs POS. He also has a Paytm POS that charges 1.77%+GST + monthly 58rs SIM fee + instant settlement costing 3rs+GST. Brother uses paytm machine for swipes and instant settlement for keeping the cashflow going.

Main concern is brand emi option and pinelab is such a shit company that everything their dashboard has is hidden with "backend" team. Their dashboard only gives access to reports nothing else. Their fees is so high monthly fee+communication fee and what not which i am getting waived off soon as I got to know abt all these charges recently as I don't have much interest in family biz as I have my own gig.

I don't think Pinelabs charge 1.5% unless someone has turnover of 200cr+, I took their retention offer for now, for getting monthly fees lowered but my main concern is MDR. If I let go of RBL TID, What happens? HDFC price is pretty good as it's 1.65%+GST.

India' GST on MDR is absurd. US doesn't charge any tax on MDR. Anyways, any tricks to lowering MDR?

I have heard phonepe machine is literally free of MDR, but there has to be a catch no? Idk they hold payments, my brother's gonna go beserk.
 
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Sobirvs said:
My dad's business is offline, card charging annually is b/w 10-15cr, and monthly is 10-70L

Daily can be b/w 1L-10L.

HDFC has given us 1.65%+GST
Pinelabs have their TID with RBL and is giving us 1.85%+GST.
We have a 7 year old relationship with Pinelabs, and with HDFC 10yrs+ We replaced HDFC machine with pinelabs but HDFC TID and RBL TID is connected with POS.

How much can we negotiate?
Click to expand...
Go with ICICI or Bank of baroda. They are giving lowest rates by compensating MDR for high value customers. Rather than turnover, your avg balance matter. HDFC u can negotiate for Biz Black card along with this so you will get rewards.
 
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rdargar said:
I am self employed individual.
I am looking to accept payment via link (No website) ; The main reason is two of our customers are saying they wish to use their CC to make payment and they are high valued customers and loyalty can't be expected in today's time.
I previously wrote post but not much responses.
I am open to opening a fresh current account the receivables will be in the range of 1-3 Lakh (Aggregate)(50-90k size) . I have read people'smoney got blocked.
I will not be using my CC to make payment , but at the same time I do not want the hassle.

What's the best solution.
For beggining I started using Stripe but they settle after 2 weeks and a hefty 2% flat charge.
Click to expand...
What are you selling anyways?? According to that I can give you some suggestions. You can make a cheap website for like 10K and host a phonepe gateway.
 
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Sobirvs said:
That's what I don't understand. My brother doesn't get this at all and father is worse than him, they have no idea what "acquirer bank" even is.

So I did some digging. We have HDFC TID and RBL's TID in that terminal. Idk why we have 2 but apparently we do. I talked to pinelabs and they said RBL's TID is given by them however HDFC's TID is of HDFC that has been linked to Pinelabs. Idk who did that and why that happened. Brother said they has POS with HDFC once but he gave up that POS coz Pinelabs machine has alot of brand EMI options that customer love hence he prefer pinelabs POS. He also has a Paytm POS that charges 1.77%+GST + monthly 58rs SIM fee + instant settlement costing 3rs+GST. Brother uses paytm machine for swipes and instant settlement for keeping the cashflow going.

Main concern is brand emi option and pinelab is such a shit company that everything their dashboard has is hidden with "backend" team. Their dashboard only gives access to reports nothing else. Their fees is so high monthly fee+communication fee and what not which i am getting waived off soon as I got to know abt all these charges recently as I don't have much interest in family biz as I have my own gig.

I don't think Pinelabs charge 1.5% unless someone has turnover of 200cr+, I took their retention offer for now, for getting monthly fees lowered but my main concern is MDR. If I let go of RBL TID, What happens? HDFC price is pretty good as it's 1.65%+GST.

India' GST on MDR is absurd. US doesn't charge any tax on MDR. Anyways, any tricks to lowering MDR?

I have heard phonepe machine is literally free of MDR, but there has to be a catch no? Idk they hold payments, my brother's gonna go beserk.
Click to expand...
Hdfc with it's own machine had given us 1.00+gst,

I recently made a transaction to check after 1 year its not changed too.
 
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tryabp said:
Go with ICICI or Bank of baroda. They are giving lowest rates by compensating MDR for high value customers. Rather than turnover, your avg balance matter. HDFC u can negotiate for Biz Black card along with this so you will get rewards.
Click to expand...

Not interested in biz black, only infinia. The biz is under mom's name in papers, and I and my brother are interested in infinia and they won't give it to us for a biz based on mom's name. Anyways, infinia we can manage on our own, POS pricing is more important. Infinia we can save few thousand rupees for offers but in business we can't think abt small money compared to business revenue... If I bring up "infinia/biz black" to my dad, he will say, kaam pe focus kr, chindi chori pe nahi.

And not interested in average bal too, more interested in huge credit line that helps when festive season comes.
 
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