- Are your frequent customers asking for a digital payment option to pay for their purchases?
- Do you now find it difficult to accept and manage payments only in cash?
- Do you wish to end the hassles of visiting the nearby bank branches to deposit or withdraw business payments?
If your answer to all these questions is a big ‘Yes’, congratulations! You have made the wisdom to embrace digital payments to upgrade your offline business – big or small. While you can easily find different types of online businesses accepting online payments. Despite this, have you ever wondered why it has been so hard for you to do the same in the offline space?
Irrespective of the region where your business and customers are located, a majority of customers are now willing to pay for things online. You might have even encountered instances where some customers refused to buy from you as you do not accept payments online. If there is one thing that holds many offline business owners away from digital payment avenues, it is the fear of paying a high price for this facility.
Many of them still think that accepting payments online for small purchases would result in a high MDR or Merchant Discount Rate, which is not true.
Not sure what an MDR is and how it is related to accepting digital payments via QR code for your small offline business? Let’s get into the details.
MDR – a bottleneck that is easy to remove for small businesses
You would fairly relate to the following example which is related to the charges of accepting online payments –
A customer purchased items worth Rs. 500 at a local store and paid for them online. While the total amount was debited from the customer’s account, the merchant, on the other hand, saw a reduction of 3% in the payment received. Here, the merchant received Rs. 485 only in his linked account. This is because the chosen payment solution provider charged a convenience fee at the merchant’s side at this rate.
As you can see here, these extra charges to be paid by the merchants can be considered the reason why many small merchants refuse to accept payments online. Also, the rate at which these payment charges were deducted is known as MDR as a part of online payment terminology.
In other words, MDR refers to the rate at which merchants are charged for accepting digital payments via different payment methods. Depending on the payment provider you select, this rate can be different for each payment option. For example, a merchant may be asked to pay 2% for payments received via credit cards but 3% for payments made through international cards.
Recommended Read: MDR, PSP Fee, Interchange Fee, and Other Payments Charges – Explained
Look closer at this example and you may realize the following things:
- The extra charges paid by the merchant simply mean a reduction in the profits, though the charges are least in lieu of the convenience of payment acceptance offered.
- The example above does not include which payment method is used for accepting payments. It is primarily because there are ways following which you can benefit from paying 0% MDR* on online payments.
0% MDR* for smaller transactions made possible QR codes
You need not worry about the cost side of accepting online payments by simply obtaining a QR code for your business. Think of it as a scannable code that links the customer’s account or card with your bank account. Whether your customers pay Rs. 5 or Rs. 500 via the QR code, the same amount gets instantly credited into your merchant account and then reaches the bank account as per the settlement cycle.
The benefits of a QR code for payments do not end here as you can also keep track of all the payments received via your merchant dashboard.
Now that you have a good understanding of how online payments work, the next big dilemma will be –
Which payment provider should you choose to obtain a QR code?
Indeed, there are several companies that offer this payment solution. However, if you want to benefit from the best and most reliable choice, here’s what we recommend:
Paytm All-In-One QR – an all-inclusive solution to your payment needs
If there is any payment brand that needs no introduction because it’s literally available everywhere, it is Paytm. Then, there is Paytm All-In-One QR code – one of its popular payment products meant to support online payment acceptance. It is the only QR code that allows your customers to pay via multiple payment options including:
- All UPI apps
- Paytm Wallet
- Paytm Postpaid, and more
Once you are registered with Paytm as a merchant and activated your QR code, your merchant account dashboard will act as a single point for all payment reconciliation needs. Check the payments received, download periodic account statements, and more with Paytm All-In-One QR.
To get your own QR, simply click here and get started!
Disclaimer: The terms and conditions related to accepting online payments via QR codes at 0% MDR may change over time as per the company policies.
Paytm’s Premium payment solutions for your offline store
If you are open to paying a certain MDR to benefit from accepting online payments in various other ways, we have more products available for your store, including:
Paytm Payment links
As the name suggests, these are URLs or links using which you can easily collect payments from your customers. You can easily generate the links and send them to your customers via email, SMS, or WhatsApp. Once the customers click on the link, they will be forwarded to a payment page where they can select the preferred option to make payments.
Paytm All-In-One POS Machine
If many of your customers ask for a credit swiping facility as they buy from you, you can simply apply for the Paytm All-In-One POS machine. Payment acceptance through this product is not limited to credit or debit cards. You can also accept payments via UPI, Paytm Wallet, net banking, and other payment options.
Paytm All-In-One POS machines also allow you to extend brand or bank offers to your customers, thereby increasing the average order value in your store.
Paytm Payment Gateway
If you want to target online customers along with the offline presence of your business, you can integrate Paytm Payment Gateway into your business website or app for seamless payment acceptance. 100% online onboarding, instant activation, 100+ payment sources, and the best pricing, you can get it all with Paytm Payment Gateway.