

0% MDR refers to payment transactions where merchants are not charged a merchant discount rate, meaning they receive the full transaction amount without processing fees being deducted.

In India, certain UPI and RuPay debit card transactions are subsidized or regulated to ensure merchants are not charged MDR. The cost is absorbed by networks, banks, or policy mechanisms rather than merchants.
0% MDR reduces acceptance costs, especially for small merchants and high-volume transactions. It encourages digital payment adoption but requires visibility into settlement timelines and volumes.
Even without fees, finance teams must track transaction data and settlements accurately to manage cash flow and reporting.