Business BankingValue Added ServicesMerchant Acquiring services(POS)

 

Merchant Acquiring services(POS)
 
 
POS is the acronym for Point of Sales. A POS terminal is a machine installed at Merchant Establishments which enables the merchants to accept payments through payment cards (credit cards, debit cards, gift cards etc.).The installation of POS machine at a merchant outlet will reduce cash handling and will enhance business revenue for merchants through increased spending option. It is a method of hassle free shopping for customers since they don’t need to carry cash with them.
 
Cards accepted: All variants of Visa, Mastercard and RuPay Cards.
 
Types  of POS terminals provided by the bank:
 
1) Countertop POS terminals: Direct PSTN landline connection based POS machines. No monthly rent is levied for these machines, as of now.
 
2) GPRS POS terminals: This is a wireless type of POS terminal, for which no landline connection is needed. As per RBI guidelines, PIN is mandatory for all domestic card transactions, GPRS terminal has an added advantage of mobility for entering PIN as compared to Countertop POS terminals. There is a monthly rent of Rs.1000 + Service tax per terminal. However there may be a waiver for these charges subject to customer maintaining adequate balance in merchant account.
 
Charges involved in POS transactions:
 
 The card holder is not charged any amount for the transactions (except in special cases like usage of cards at Petrol pumps).The merchant needs to pay a certain percentage of the transaction value to the bank. This charge payable by the merchant is known as MDR- Merchant Discount Rate. It varies from merchant to merchant.
 

Charges & Rates applicable for POS terminals
Particulars
Rates & Charges
Debit cards<=2000
0.75%
Debit cards >2000
1.00%
Credit cards
1.60%
Premium cards
1.60%
Foreign cards
2.50%
Monthly commitment charges
Rs 250/-+ tax per terminal if monthly transaction volume is less than Rs 1.00 lac
Non transaction charges
Rs.250/- per month
Annual Commitment charges
NIL
De-Installation charges
NIL
Monthly rentals for PSTN(Wired) terminals
NIL
Monthly rentals for GPRS(Wireless) terminals
*Rs.1000/month.
Late settlement charges
Rs 300/-
*Monthly rent for one GPRS terminal will be waived for those months in which average balance of Rs.5 lakh is maintained in CD Account or Rs.10 lakh in SB account linked with the POS terminal. 50% of the rent of one GPRS terminal will be waived for those months in which average balance of Rs.2.50 lakh is maintained in CD Account or Rs.5 lakh in SB account linked with the POS terminal.

** Monthly charges will be applicable with effect from 01.09.2015
 
How to apply
 
To avail a POS machine facility, the merchant needs to submit a dully filled up application form and necessary documents at the branch where he maintains his account. On approval of the request by the bank, merchant enters into an agreement with the Bank, after which the terminal will be installed.