MAB is primarily referred to as the mechanism of providing necessary infrastructure and facilitating payment for goods and services purchased through Debit/Credit Card, UPI, Aadhaar Enabled Payment System (AePS) etc.

Issuer: The Bank that issues cards.
Cardholder: Customer / Non customer using card for making payment.
Merchant: Entity which accepts payments through cards.
Acquirer: The Bank that provides necessary infrastructure to the merchant to accept payment, maintains relationship and facilitate acceptance payments thru cards.
Intermediary Agency: Visa, MasterCard, Rupay Debit and Credit Cardswho facilitate interbank settlements.

Merchant Discount Rate (MDR): The commission charged by the acquirer (PNB) to the Merchant (Trader/Service Provider). It is also termed as Merchant Service Fee (MSF).
Interchange: The incentive paid by the Acquirer Bank to the Card Issuer Bank for promoting payment through cards.
Scheme Fee: The service fee paid to intermediary agencies i.e. MasterCard or Visa for facilitating interbank payments.
On -Us Transaction: Where issuer and acquirer is same (e.g. PNB Debit Card on PNB POS terminal)
Off-Us Transaction: Where issuer and acquirer are different (e.g. other bank’s debit/credit card on our POS terminals.)

Interchange fee: The incentive paid by the Acquirer Bank to the Card Issuer Bank for promoting payment through cards.
Authorization Fee / Scheme Fee: The service fee paid to intermediary agencies i.e. MasterCard, Visa and NPCI for facilitating interbank payments

Batch Settlement: Closing of Daily Transaction and Generation of transactions reports.
Charge – Slip: Charge slip refers to the voucher printed on the POS machine after swiping and charging a debit or credit card.

Cardholder

Merchant

Do’s

Don’ts