BB caps Bangla QR merchant charge at 1pc

The Bangladesh Bank (BB) fixed the maximum Merchant Discount Rate (MDR) for Bangla QR transactions at 1 per cent, including VAT, in a move aimed at making digital payments cheaper and encouraging wider use of cashless transactions across the country.

The new rate will apply to all merchant payments made through Bangla QR under the National Payment Switch Bangladesh (NPSB), whether customers pay using bank accounts, debit cards, prepaid cards, credit cards or mobile financial services (MFS).
The decision was revealed in a circular issued by Bangladesh Bank on Wednesday.

The central bank said banks and payment service providers will continue to have the flexibility to offer promotional incentives for Bangla QR transactions. 

All other existing instructions regarding the service will remain unchanged.

The latest directive revises an earlier instruction on merchant charges for digital payments under the NPSB and is expected to help expand the use of Bangla QR by reducing the cost of accepting digital payments for businesses.