Published 1 month ago
Hey BigPay fam,
You may have heard about something called MDR recently.
We’re here to give you the MDR lowdown and assure you that there’s absolutely nothing to worry about! 🤗
What is MDR?
MDR stands for Merchant Discount Rate. It’s a fee charged by acquirers and networks such as DuitNow to merchants for electronic payments — that includes debit and credit cards! 💳
This fee is used to cover the expenses needed by the industry to upkeep their payment systems, including authorisation, cybersecurity, fraud prevention, and more.
Moving forward, why will DuitNow have MDR?
The thing is… MDR has always been around! It’s by no means a new fee.
In fact, every time you pay with your debit or credit card, MDR is charged to the merchant.
Since the launch of DuitNow QR in 2019, MDR has always been in place. However, it was temporarily waived to promote the adoption of QR payments during the pandemic.
On 1st October 2023, this waiver will expire after being extended from January 2023. Hence, DuitNow QR payments will now incur the MDR fees.
How does this affect me?
There will be no additional charges for you when you use DuitNow QR since the MDR charge is paid by the merchant, not you. 🥳
Don’t worry, the price of goods and services will also remain the same.
How much is MDR?
That depends on the payment method. For QR payments, the MDR is 0.25% and above, compared to debit or credit cards where it can cost between 1-3%.
So, if you want to continue supporting your local businesses, DuitNow QR is still the cheapest payment acceptance method for the merchants! 🤗
Should I continue to use DuitNow QR?
Absolutely! You’d be crazy not to. 😮
✅ It’s convenient
As Malaysia’s national QR code, it’s accepted nationwide by millions of merchants!
✅ It’s instant
No more digging through your wallet for cash. Just whip out your BigPay app and make payments in literally seconds.
✅ It’s free and safe
DuitNow QR is 100% free for consumers and much safer than cash
We hope this helps you to understand the changes to DuitNow’s MDR fees!
If you still have questions, our friendly customer service team is here to help you 24/7 through the in-app chat or at firstname.lastname@example.org
Team BigPay 💙
BigPay is a free money app that comes with a card you can use anywhere in the world. It gives you the best exchange rates, and it helps you budget by tracking all your spendings.