What is a Merchant Discount Rate and how it corresponds with Payment Gateways?

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What is a Merchant Discount Rate? ( MDR )

 Merchant Discount Rate is a fee charged by the banks whenever your customers pay you the purchased amount using their Debit and Credit Cards.

How is the process work?

In the first place If you have an e-Commerce or digital products online by which you’re making money from those. The mode of payment would be obviously via bank credit and debit cards. So whenever a customer buys something from your site. You will be charged some percentage which needs to be set up prior. The terminology which is referred to as ” Payment Gateways “.

Moreover, to implement payment gateways onto your website your website must be completely ready with proper navigation links. Correspondingly your website won’t get approved and you cannot integrate payment gateways to the website. So there will be no source of accepting payment from your customers.

Taking MDR into consideration

As I said for every purchase you will be charged extra by the Payment Gateways. So whenever you decide your product pricing you need to take care of payment gateway charges as well. Also the overall expenditure and profit margins of your business.

The payment Fees

Typically it depends on various factors. Such as monthly Turn-Over, Type of Payment Gateway. Some may offer for free but in those, the option would be very less and it is not likely suitable for all types of payments.

If you want all types of features and wallet payment as well then your payment fee will fall around 1% to 3%. Some payment gateways offer you the price per year. This can be beneficial for those whose turnover is way more. So if you pay per year your fee can fall around 0.5%.

The design and technology

Moreover by this design and technology, the whole E-commerce and the transaction are running successfully. Financial Technology is trying to integrate Online Payments and make them even faster and reliable for the companies who are developing Point of Sale. (PoS) and even those companies offer Payment plans and lines of credit as well.

Payment gateway companies are crucial for the development of payment processing and they need to keep in good relationship with merchants for better development.

Business owners have a wide variety of option to choose the Payment Gateways which is best suitable for your business. For instance, you can select CC Avenue for a payment gateway. The features of CC Avenue include.

Payment Gateway

Fast, secure & simply the best multi-currency Payment Gateway in its most innovative and advanced form with powerful tools to complement your business needs.

Maximum Payment Options

  • 6 Credit Cards
  • 57+ Net Banking
  • 98+ Debit Cards
  • 13 ATM Cards
  • 12 Prepaid Instruments
  • 14 Bank EMI

Multiple Currency Processing

Collect payments in 27 major foreign currencies and allow your customer to pay in the currency they know best. 


  • Indian Rupee
  • Singapore Dollar
  • Pound Sterling
  • American Dollar
  • Omani Rial
  • Bahraini Dinar
  • UAE Dirham
  • Euro
  • Canadian Dollar
  • Swiss Franc
  • Baht
  • Sri Lankan Rupee
  • Malaysian Ringgit
  • Qatari Riyal
  • Hong Kong Dollar
  • Kuwaiti Dinar
  • Bangladesh Taka
  • New Zealand Dollar
  • Australian Dollar
  • Nepalese Rupee
  • Chinese Yuan Renminbi
  • Japanese Yen
  • Kenyan Shilling
  • Mauritius Rupee
  • Philippine Peso
  • Saudi Riyal
  • South African Rand

Email / SMS Payments

This allows you to send speedy Email / SMS invoices with a click-to-pay button and even get paid faster. 

  • Customize invoices with your logo and information
  • Add payment terms, invoice items, tasks, descriptions, and taxes
  • Discount invoices for early payment or adds automatic fees for late payment
  • Receive payments twice as fast with online payment using hundreds of payment options.

CC Avenue Integration

This could be the main aspect of any Business. You need to have the support of API of your desired payment Gateway or else you cannot integrate payment gateway onto your site.

Moreover, CC Avenue supports the following platforms.

  • Buildabazaar
  • Cubecart
  • Drupal
  • Interspire
  • Joomla
  • Magento
  • Magento Go
  • Martjack
  • Moodle
  • NopCommerce
  • Opencart
  • OsCommerce
  • PrestaShop
  • VirtueMart
  • WordPress
  • ZenCart


Additionally CC Avenue payments Automate, streamline and simplify your business collections and payments via multiple payment modes. B2Biz Payments accelerates cash flow, improves efficiency & saves cost.


Go beyond billing and recurring invoices to deliver an automated subscription experience that is simply awesome. In addition to that, you can create subscription plans that best suit your business. Which is suitable for Hosting sites and some yearly payment services.


Moreover, you can get an easy business loan at competitive rates with CC Avenue along with basic documentation and within minimum turn-around time. Also, CCAvenue Merchant Finance accelerates your business growth and makes your dream a reality.

However, make sure you have these features mentioned in your selected Gateway. Because having more features can improve customer satisfaction and you will be having a recurring customer.

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