----- MERCHANT SURVEY ON CARD PAYMENTS ----- Indian Institute of Technology Bombay (2009)
This Questionnaire has only 14 questions. Please TICK against the most appropriate answer (o) as per your choice.To know more about this survey
Name of the Establishment or Service Provider:
Name and Designation of Respondent:
Number of employees in your establishment
Less than 10
10 or more but less than 20
20 or more
Annual sales (Rs. crore)
Less than 1
1 or more but less than 50
50 or more but less than 100
100 or more
Considering card and cash payments received from your customers, for every 100 receipts, the number of payments received through cards is
Less than 20
20 or more but less than 40
40 or more but less than 60
60 or more
Considering card and cash payments received from your customers, the percentage share of transaction volume (value) through cards is
Less than 20%
20% or more but less than 40%
40% or more but less than 60%
60% or more
Considering that the cost to handle cash include the risk of theft, robbery, counterfeiting, risk of human error during exchange, armored transportation for depositing the money, etc., the cost that you incur to handle every Rs. 100 received through a cash transaction is
Less than 5 paisa
5 paisa or more but less than 25 paisa
25 paisa or more but less than 50 paisa
50 paisa or more
How much do you pay to your bank for every Rs. 100 paid through credit cards?
Less than Re. 1
Re. 1 or more but less than Rs. 1.50
Rs. 1.50 or more but less than Rs. 2
Rs. 2 or more
The payment method which you would prefer a customer to use at your establishment
Credit and Debit Cards alike
Merchant Discount Rate (MDR) is the cost you incur by paying your bank on a card transaction. How do you account for the MDR?
Fix the displayed selling prices so as to include MDR in it and then provide discounts to cash payers to attain balance.
Maintain a balance by incorporating some part of the MDR in the displayed selling price itself.
Do not attempt any balance by absorbing the full additional cost on MDR and thus maintain different profit margins for cash and card payments.
Do you feel it is reasonable for the merchants to pay for a loan taken by the customers from their bank while using a credit card for making purchases (through a substantial part of the MDR)?
In your opinion should customers know how much MDR merchants have to pay to their banks when customer chooses to pay with different payment systems (card / cash)?
After deciding on the net % profit, if merchants are allowed to separately charge some component of MDR, will this facilitate you to reduce the displayed selling price of your goods and services?
Keeping in mind the cost of cash handling (including risk of theft in cash handling, risk of encountering forged currency, high labour costs, etc.) and the convenience of cards (improved cash flow, automatic currency conversion, etc.), how much % of displayed selling price are you willing to bear (or consider reasonable) as MDR on transactions through cards?
0.2% to 0.5%
0.5% to 0.8%
0.8% to 1%
More than 1%
Should MDRs, Interchange fees, etc. be decided by the parties involved such as merchants and issuer/acquirer banks or by the credit card companies like MasterCard and Visa or by the Regulator (RBI)?
Parties involved (Merchants and Banks)
Credit card companies
In Europe and Australia (unlike India) all merchants are allowed to pass a surcharge (some component of MDR) to their customers. Are you aware of this fact?
Given the above fact, do you think that merchants in these countries are better placed to make a judicious choice on the quantum of surcharge they feel is reasonable to charge according to market competition and consumer behavior?
Suppose the actual transaction cost involved in a debit card payment of any amount is roughly Rs. 4/-. Keeping in mind the convenience of electronic payment, increased sales due to consumer’s attitude to spend more when they are not constrained by cash at hand, etc., would you prefer debit card transactions over cash transactions?