Running a small business from home in Malaysia? Those Merchant Discount Rates (MDR) on payments through eCommerce via WhatsApp, TikTok, and email might be cutting into your profits more than you think. Imagine saving thousands of Ringgit by lowering these fees—don’t let your hard-earned money slip away! Discover simple strategies to reduce your MDR and boost your bottom line today!
What is MDR?
MDR is a fee that merchants are charged for processing debit, credit card & e-Wallet transactions. This fee is usually a percentage of the transaction amount and is paid to the bank or payment processor for handling the payment. The MDR can vary based on several factors, including the type of card used (credit, debit, or e-Wallets), the volume of transactions a merchant processes, or the terms between a merchant and their payment gateway provider. The MDR helps cover the costs of maintaining the payment infrastructure and processing the transactions securely.
The Hidden Costs of High MDRs
While a fraction of a percentage may seem insignificant, it can add up quickly, especially for businesses with high transaction volumes. For example, if your annual credit card sales are RM1,000,000 and your MDR is 3%, you’re paying RM30,000 in fees. Reducing that rate by just 1% could save you RM10,000 per year!
Tips to Save Your MDR
- Shop Around for the Best Deals:Different payment gateways offer varying MDR rates. Compare providers to find the most competitive rates.
- Negotiate with Your Payment Provider:Businesses with higher transaction volumes often have more bargaining power. Don’t hesitate to negotiate for better rates.
- Optimize Your Payment Mix:Encourage customers to use payment methods with lower MDRs, such as debit cards or e-wallets.
- Leverage Secure Payment Links:Sell on platforms like WhatsApp, Facebook Messenger, email, or TikTok to send secure payment links, you can often bypass traditional payment gateways and save on costs instead of paying e-commerece plaform commission fees.
Introducing CardBizPay: Your Solution to High MDRs
If you’re looking to optimize your MDR and save thousands of ringgits, it’s time to consider CardBizPay. As a leading online payment gateway in Malaysia, CardBizPay offers some of the most competitive MDR rates in the market.
Key Benefits of CardBizPay:
- Low MDR Rates:CardBizPay’s rates are among the lowest, if not the lowest, in the market.
- No Setup Fee:Get started with no upfront costs.
- First-Year Annual Fee Waiver: Lessen your operating costs even further in the first year.
- Wide Range of Payment Options:Accept payments via credit cards, debit cards, FPX, e-wallets, and more.
- Stringent Security Measures: Every transaction is protected by industry-leading PCI DSS-compliant security measures.
- Easy Integration: Seamlessly integrate with your e-commerce platform or mobile app.
- Real-Time Reporting: Access detailed transaction data to make informed business decisions.
By switching to CardBizPay, you’re not just saving on MDR – you’re investing in a comprehensive payment solution that can help grow your business.
Conclusion
Conquering high MDRs is essential for the success of any small business. By understanding how MDRs work and implementing the right strategies, you can save thousands of Ringgit annually. CardBizPay offers a compelling solution to help you optimize your payment processes and boost your bottom line. Take control of your finances today and start saving with CardBizPay!