Which Bank/Service provider offers lowest MDR?

[rdargar]

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.

 

[tryabp]

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.🙌

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.

 

[RaviAgl]

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!!

 

[tryabp]

We got below rates from ICICI. Please comment if anyone able to get lower MDR than this.

 

[RaviAgl]

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!!

 

[BRB]

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!!

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!

 

[RaviAgl]

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!

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!!

 

[BRB]

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!!

Let me talk to my RM at HDFC and see what he can offer. Thanks a lot for the suggestions. Cheers!!

 

[Mr. Aman]

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!!

hello all
I'm currently using kotak pos is with mdr of 1.35 plus gst

 

[BRB]

hello all
I'm currently using kotak pos is with mdr of 1.35 plus gst

Could you please share more details on your current account type and the service category of your business.

Thanks!!