Have you ever felt that in this day and age, almost all customers want to stay when they pay for something? Scan QR code only?
As a business owner, providing digital payment options via QRIS is like a lifesaver that makes transactions go smoothly.
However, behind this convenience, as a smart business owner, you certainly need to be observant of the adjustments to operational costs that have recently been widely discussed by fellow culinary and MSME entrepreneurs.
In response to this phenomenon, various opinions have emerged stating that these non-cash transaction deductions are quite burdensome.
Meanwhile, many also believe that digitalization is the key to enabling your culinary business to compete in a modern way and move up a class.
Understanding the rules of cost reduction is a crucial step so you can develop a food pricing strategy without sacrificing profit margins.
Let's dive into the basics of what these fees actually are, what the latest rates are, and smart tips on how to handle them to keep your business profitable!
What is Merchant Discount Rate (MDR)?
So that you don't get confused by this foreign term, let's discuss it in easy-to-understand language, okay?
Simply put,merchant discount rate service fee, charged to the shop owner or merchant for every non-cash payment transaction that is successfully processed using a debit card, credit card, or QR code.
So, every time a customer displays their mobile phone to pay for their favorite menu at your outlet using a digital wallet, a small percentage will be deducted by the bank or payment service provider as a fee.
It is important to remember,merchant discount rate discounts that are directed to you as a business owner, and should never be passed on directly to buyers by increasing prices or adding extra costs (surcharge) when they want to pay using a non-cash method.
These strict regulations from Bank Indonesia are designed to maintain a consumer-friendly digital transaction ecosystem. As a wise business owner, you should view these costs as an investment to ensure your cashier operations run faster, more securely, and minimize the risk of counterfeit money or daily accounting discrepancies.
Discussing digital transaction costs would be incomplete without mentioning one of the most popular cashless payment methods in Indonesia today, QRIS.
Along with the incredibly rapid increase in its use, the rules regarding merchant discount rate also undergo periodic adjustments from regulators to support fairness for small and medium-sized businesses.
A detailed understanding of this rate scheme is crucial to avoid making mistakes when calculating your business's daily expenses. So, actually what is a merchant discount rate and how does the imposition scheme actually work on each transaction?
When you register your business to have a QRIS payment facility, you automatically agree to a cooperation contract which contains the rules merchant discount rate QRIS.
These fees will be automatically deducted before the transaction funds are transferred to your store account. To get a clearer picture of the new tariff rules, let's take a look at the official details released by Bank Indonesia in the next section.
Read Also:Customer Retention Is Key to Business Success, Here's How to Improve It!
Details of the Latest MDR QRIS Discount Rates from Bank Indonesia
Sumber: Istockphoto
As a form of real support for national economic development, Bank Indonesia periodically adjusts interest rates.merchant discount rate QRIS to remain pocket-friendly for business owners, especially on a micro scale.
Through its latest policy, Bank Indonesia has established a fair tariff structure based on your business scale, allowing you to adjust the tax burden to your business's turnover.
The following are the details of the rates.merchant discount rate QRIS latest things you need to know:
- Micro Enterprise (UMI): For small transactions with a nominal value of up to IDR 500,000 per transaction, the MDR rate charged is0% (aka free!) this policy is certainly a breath of fresh air for small businesses, as they can enjoy digital payment facilities without any deductions. However, if the transaction amount in a single receipt exceeds Rp 500,000, a friendly fee of Rp 500,000 will be charged 0,3%.
- Small Enterprises (UKE), Medium Enterprises (UME), and Large Enterprises (UBE): For businesses that are already in the middle to upper category, the regular rate that applies is 0,7%of the total transaction value, without looking at the nominal limit of the customer's shopping receipt.
- Special Sector Categories: For transactions in the education sector, a fee of0,6%, gas station area is subject to tariffs 0,4%, while for transactions related to government social assistance, tax payments (People to Government), as well as non-profit social donations are exempt from fees, aka0%.
Well, with by understanding the details of the rates above, you no longer need to guess why the funds that enter your account sometimes do not exactly match the total customer purchases.
Considering the rates/merchant discount rate QRIS this really depends on your business category. Make sure that when registering as a merchant, you choose the correct and honest business classification to avoid any tariff errors.
After knowing the daily transaction percentage rate, the question usually arises:"So what's the difference with the withdrawal or transfer fees that are usually deducted daily when transferring sales proceeds?".
So, to avoid confusion between one type of deduction and another, let's discuss the basic differences between MDR fees and settlement fees below.
Difference between MDR QRIS and Settlement Fees
For those of you who have just adopted a digital payment system in your restaurant or cafe, understanding the components of administrative costs is both easy and difficult.
Often, novice businessmen mix up the cuts.merchant discount rate QRIS with the cost of sending funds or what is usually called a fee settlement.
However, these two cost components have very different purposes, recipients, and deduction methods.Let's dissect them one by one so that your shop's financial bookkeeping remains neat and not confusing:
- Merchant Discount Rate (MDR):As we have discussed,merchant discount rate is a fee calculated as a percentage (for example, 0.3% or 0.7%) and automatically deducted from the transaction value when the customer makes a payment. This fee is paid to the institutions facilitating the digital transaction, such as acquiring banks, digital wallet issuers, switching institutions, and even the institutions responsible for national payment gateways.
- Settlement Fees:This fee is a flat rate (usually ranging from Rp1,500 to Rp3,000 per transfer, with some even being free depending on the payment service provider's policy) charged when you withdraw or transfer sales proceeds from your digital merchant account to your personal bank account. This fee is purely for interbank transfers and is typically charged per transfer, not per customer transaction.
By understanding this difference, you can do cash flow planning (cash flow) more maturely. For example, instead of you withdrawing funds or settlement every few hours which can cause interbank transfer fees to balloon, you can schedule a single withdrawal at the end of the day after your culinary outlet closes.
Understanding these two types of expenses naturally leads us to a more in-depth analysis of day-to-day business operations. How significant is the impact of these small, accumulated deductions on the sustainability of a growing MSME or restaurant? Let's analyze their real-world impact on your business's sustainability.
The Impact of MDR Cuts on MSME and Restaurant Profits
For a restaurant, cafe, or food stall struggling to increase sales, every dollar spent is precious. At a glance, the percentage of the tariff merchant discount rate is which ranges from 0.3% to 0.7%, it does seem very small and trivial.
However, if your culinary outlet has a very high daily transaction volume with a thin product profit margin, the accumulation of these small deductions can certainly have an impact on your store's monthly profit and loss report.
Let's take a simple example of a medium-sized business subject to a 0.7% tariff. If your store records Rp5,000,000 in daily digital payment transactions, the transaction deduction for that day would be approximately Rp35,000.
Over the course of a month, these accumulated discounts can reach Rp1,050,000. This figure is certainly significant if not anticipated through careful cost of goods sold (COGS) calculations from the outset.
However, behind these cuts, you should also see the much bigger positive impact on your business development:
- Increase Sales Volume: Many customers today are reluctant to carry cash due to practicality. By offering cashless payments, you secure potential transactions from these types of customers who might otherwise abandon a purchase if your store only accepts cash.
- Much More Hygienic Operations: In the culinary industry, cleanliness is paramount. Kitchen staff or cashiers who have to handle banknotes and food frequently risk spreading germs. Digital transactions make the service process much cleaner and more hygienic.
- Accurate Automated Bookkeeping: You no longer have to worry about counting the remaining cash in the cash register drawer at the end of the day or worry about missing change. All transactions are recorded neatly and transparently within the system instantly.
Considering the two sides of the coin when it comes to the impact of digitalization, the key lies in how you manage your business intelligently so you can maximize the benefits of this technology without eroding your store's profit margins. Want to know how? Check out these practical tips!
Smart Tips for Managing MDR Costs to Keep Your Business Profitable
Sumber: Istockphoto
After understanding in depth about what is a merchant discount rate with the latest pricing details, now's the time to develop a winning strategy to ensure your business continues to maximize profits. Don't worry about your slim margins being eaten away, as there are several tactical steps you can implement starting today at your culinary outlet:
- Include MDR Costs in COGS Calculation: When first determining food or beverage menu prices, make sure you include a small non-cash operating cost component in your basic cost of goods sold calculation. This way, your initial targeted net profit margin won't be affected by daily transaction deductions.
- Optimize the Fair Price Rounding System: Instead of setting menu prices that are too tight, you can round prices up psychologically to still appeal to customers (for example, rounding up from Rp14,800 to Rp15,000). This slight rounding difference is usually enough to cover costs.merchant discount rate is transaction discounts without making customers feel burdened.
- Use an Integrated Smart Cashier System:The most effective way to reduce operational costs in other areas is to use efficient and fully automated cashier technology. By reducing manual work time at the cashier, you can save on other operational expenses to offset these digital transaction costs.
Read Also:Why Are Service Plates Important? Here's How to Serve Food to Make It Look More Classy
Managing administrative costs does require a high level of precision, but with the help of a modern and integrated operational system, all financial matters and transaction recording in your store are guaranteed to run more smoothly.
To answer some minor doubts that may still linger in your mind, let's take a look at the quick Q&A summary in the FAQ section below.
FAQ (Frequently Asked Questions)
1. Are merchants allowed to charge MDR fees directly to customers?
Absolutely not allowed! Bank Indonesia strictly prohibits any form of additional fees (surcharge) to consumers who choose to pay using non-cash methods. The price paid by customers using QRIS must be exactly the same as customers paying in cash.
2. Are all QRIS transactions under IDR 500,000 for Micro Businesses really free of deductions?
That's right! According to the latest regulations from Bank Indonesia, specifically for Micro Enterprises (UMI), daily transactions with a nominal value of up to IDR 500,000 per transaction are subject to a fee merchant discount rate QRISThis represents a concrete step by the government to support the growth and development of small businesses, enabling them to become increasingly digital without having to worry about daily transaction fees.
3. How do I register my business as a Micro Business category to get a 0% rate?
You must ensure that when registering as a digital merchant through your chosen Payment Service Provider (PJP), you attach valid supporting business documents and select a micro-business scale classification according to the annual turnover criteria set by the government.
Conclusion
So, after seeing the various challenges and opportunities above, now you understand more that managing a culinary business involves operational management, neat financial records, and super-fast customer service.
All of these things are interrelated and cannot be separated if you want your culinary business to survive and continue to grow amidst increasingly fierce competition.
Improving efficiency at the cashier and in the kitchen is key to ensuring customers don't have to wait long for their orders. When all these processes are automated and human error is minimized, you can focus more on broader business development strategies.
So that you no longer have to worry about messy bookkeeping or long queues, using modern technology is the most appropriate step you can take now.
You can rely on ESB POS as a smart cashier system that is specifically designed to simplify all forms of transactions, inventory management, to the preparation of financial reports automatically and real-time.
In addition, to provide a more enjoyable and contemporary dining experience for your loyal customers, integration with servicesESB in Restaurant will be the best solution.
This service allows customers to place orders and pay directly from their desks very easily, practically, and without any hassle. Come on, it's time to reduce operational drama and make your business run more automatically!
Just find the complete solution for the smooth running of your cashier at ESB and contact our team right now!
