Merchants vs Credit Card fees - Merchant Discount Rate (MDR) – for Credit Card Transactions (e.g. 3%) \t•\tWhat it is: A percentage fee charged on credit card sales processed via the POS terminal. \t•\tAmount: Commonly 2.5% to 3.5%, depending on the merchant agreement and card type (Visa, MasterCard, Amex, etc.). \t•\tWho pays it: The merchant. \t•\tWho receives it: \t•\tThe fee is split between: \t1.\tThe merchant’s bank (acquiring bank) – takes a share for facilitating the transaction. \t2.\tT
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Merchants vs Credit Card fees - Merchant Discount Rate (MDR) – for Credit Card Transactions (e.g. 3%) \t•\tWhat it is: A percentage fee charged on credit card sales processed via the POS terminal. \t•\tAmount: Commonly 2.5% to 3.5%, depending on the merchant agreement and card type (Visa, MasterCard, Amex, etc.). \t•\tWho pays it: The merchant. \t•\tWho receives it: \t•\tThe fee is split between: \t1.\tThe merchant’s bank (acquiring bank) – takes a share for facilitating the transaction. \t2.\tT
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