Merchants to pay at least 1% fee for Bangla QR transactions

Bangladesh Bank (BB) has set a minimum fee of 1 percent, including VAT, that banks and payment providers can charge merchants for transactions made through the Bangla QR system.

The order will take effect immediately, according to a central bank circular issued today. 

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The fee, known as the Merchant Discount Rate (MDR), applies when payments are made via bank account, debit and prepaid cards, credit card, mobile financial services (MFS), or Payment Service Provider (PSP) channels, as long as the transaction uses Bangla QR under the National Payment Switch Bangladesh (NPSB).

The latest circular replaces parts of a February 6 order, which had set MDR ceilings for Point of Sale (POS), Bangla QR, and e-commerce transactions.

That earlier circular's other fee limits and conditions remain unchanged; only the new minimum applies now.

Acquiring institutions- banks or PSPs that process payments on behalf of merchants- may still run promotional campaigns to encourage digital transactions, even if that means offering rates below the new floor during such campaigns.