Karachi: The State Bank of Pakistan (SBP), gearing up efforts to accelerate the deployment of interoperable Raast QR-based payment acceptance at fuel stations, on Monday notified Merchant Discount Rate (MDR) and Interchange Reimbursement Fee (IRF) to facilitate the acceptance of digital payments for purchase of fuel and related products.
The MDR for all card-present transactions conducted at fuel stations for the purchase of fuel and related products is capped at PKR 1. 00 per litre while the IRF ceiling for such transactions is fixed at PKR 0. 20 per litre.
The arrangements are effective with immediate effect and will remain applicable until 31st January 2027 for all payment cards issued in Pakistan, a circular letter issued by SBP’s Payment System Policy and Oversight Department read.
‘SBP will revisit these instructions on or around 31st January 2027 in the light of market response to this pricing mechanism, ‘ it added.
The SBP encouraged all Regulated Entities (REs) including banks, MFB, EMIs, PSOs and PSPs to actively engage with their respective merchant fuel stations, during the mentioned period, to ensure the enablement and availability of Raast QR-based payment acceptance, for the purchase of fuel and related products.
Earlier at the onset of the year 2020, the central bank had taken key measures for improving payment card acceptance infrastructure in Pakistan in view of considerable growth in the digital payments in the country, and allowed Interchange Reimbursement Fee (IRF) and Merchant Discount Rate (MDR) on digital transactions.
MDR for POS acquiring in Pakistan was fixed within the range of 1. 5% to 2. 5% for both existing and new merchants while the IRF for debit and prepaid cards issued in Pakistan used on domestic POS terminals was capped at 0. 5%, with effect from April 01, 2020.
Besides the government payments, court costs and utility and educational payments, the fuel expenses including Service Stations, Automated Fuel Dispensers, Petroleum and Petroleum Products, Fuel Oil, Wood, Coal, Liquefied Petroleum were exempted from this requirement
During the course of time in March 2023, SBP revised the rates to facilitate the acceptance of card-based payments. IRF for cards issued in Pakistan used on domestic POS terminals was capped separately for debit and prepaid cards, and credit cards at 0. 2% and 0. 7% respectively while lower range of MDR was abolished.