UPSC Prelims 2018
Economy
Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in the news?
Explanation
The Merchant Discount Rate (MDR) is a fee levied on merchants by payment processors for accepting debit and credit card transactions. It's typically a percentage of the transaction value. So, when a customer uses a debit card at a store, the store pays a fee to the bank that processes the transaction. Hence, option C is the correct answer.