BB sets minimum fee for Bangla QR Code merchant payments

Bangladesh Bank (BB) has issued a new directive to bring more discipline to digital transactions between banks. The minimum Merchant Discount Rate (MDR) or service fee for merchant payments through Bangla QR Code under the National Payment Switch Bangladesh (NPSB) platform has been set at 1 percent (including VAT).

The circular was issued by the Payment Systems Department-2 (PSD-2) of Bangladesh Bank on Wednesday (July 1). The directive, signed by department director Md. Sharafat Ullah Khan, has come into effect from the date of issuance.

The circular states that a limit for MDR was previously set for POS and Bangla QR Code-based transactions in government payments through NPSB and card schemes. In the new directive, all other fees, charges, and conditions remain unchanged, and the new rate applies only to Bangla QR Code-based merchant payments.

Under the new rule, acquiring banks or institutions can charge a minimum of 1 percent MDR (including VAT) from merchants for payments received through Bangla QR Code using bank accounts, debit cards, prepaid cards, credit cards, Mobile Financial Services (MFS), or Payment Service Providers (PSP).

However, the circular also allows acquiring banks or institutions to run promotional campaigns on their own initiative to encourage digital transactions.