BML debit card merchant fee lowered to 1 percent

Bank of Maldives (BML) has said that the merchant fee for businesses that use card machine transactions made with debit cards will now be 1 percent.

BML stated that the Merchant Discount Rate (MDR) has been at 2.5 percent since their introduction of the debit card in 2000. They decided to lower the MDR to 1 percent in celebration of the company's 43rd anniversary.

MDR is a commission charged by the bank to businesses that use BML's card machines for transactions. One of the reasons why some businesses do not want cards being used at their establishments is due to the fee being high.

BML said that with the fee reduction, "more than 7,000 businesses that use BML payment services will directly benefit."

"There is a major connection between the bank's success and the success achieved by business customers that are part of the bank. And so we are proud to lower costs for businesses across the nation in celebration of BML's anniversary, along with this step facilitating easier access to finance. Changing the merchant fee to 1 percent is a big step. With this change, we believe that thousands of businesses will benefit," said BML CEO and Managing Director Mohamed Shareef.

Along with lowering the MDR, BML has introduced today a new Advance Merchant Settlement (AMS) facility in order to offer further financial concessions to business customers.

Under the AMS, which does not have a mortgage tied to it, it is possible to arrange MVR 2 million in funds after taking into account the amount of transactions made with the BML card machine within a 6 month period. BML said that the time frame the amount has to be paid back will be determined by daily revenue gained from the business.

BML has also increased the international transaction limit on debit cards. The decision to increase the foreign POS transaction allowance to USD 1,000 will come into effect on 11th November. They have also increased the monthly transaction limit for medical and travel expenses to USD 3,000.

"Customers can immediately start utilizing the limit increases without an additional application," said BML.

As per BML, the aforementioned steps that are aimed at individuals and businesses that make use of their service shows BML's assistance to Maldivians in all industries and their efforts in prioritizing and bolstering Maldivian businesses.