As a full-service in-store andonline payment processing company, Maya offers startups and small and medium-sized enterprises (SMEs) in the Philippines a selection of payment solutions suited for different online and offline applications. Each payment solutionhas a different pricing scheme, even though they all belong to an integrated suite of payment products. SME and startup owners should consider the specific prices associated with each Maya Business offering to select the best in-store and online payment processing solution for their business needs.
One crucial aspect of payment pricing is the Merchant Discount Rate (MDR). In this article, we will delve into the concept of MDR, its significance for Philippine-based SMEs and startups, and how businesses can navigate these different in-store and online payment platforms’pricing structures to optimize their payment transactions.
What Is Merchant Discount Rate (MDR)?
The Merchant Discount Rate (MDR) is a fee charged by an in-store and online payment processing service to merchants for accepting electronic payments. The MDR is typically expressed as a percentage of the transaction amount and is deducted by a service provider for facilitating the payment. With Maya’s in-store and online payment solutions, MDRs may differ depending on the payment type being facilitated by a given payment acceptance product.
Significance of MDR for Philippine-Based SMEs
Cost Analysis
MDR plays a crucial role in the cost analysis of payment transactions for SMEs and startups. After all, it directly affects the profitability of each transaction. In short, businesses need to understand its impact on their bottom line. By evaluating and comparing MDR rates from different payment acceptance products including those from Maya Business and from other providers, SMEs can make informed decisions to minimize costs and maximize revenue.
Customer Convenience and Product Pricing Determination
Each customer will want their in-store or online payment processedin different ways. Thus, accepting a wider range of electronic payments enhances customer convenience and expands market reach for SMEs. However, the MDR associated with each payment acceptance method should be considered when determining product pricing and calculating profit margins. Striking a balance between customer convenience and cost implications can help raise profitability, making it easier for a business to grow sustainably.
Payment Acceptance Strategies
MDRs vary across different payment acceptance methods and across solutions providers. The same is true across Maya Business’ in-store and internet payment solutions. SMEs interested in a particular Maya product should analyze its MDR structures and ensure that it aligns with their business model and customer preferences. Taking a more methodical approach in assessing your payment environment and selecting the right Maya products accordingly can help you optimize your store’s checkout process, cash flow, and customer experience.
Navigating Maya’s Products and their MDRs for Optimal Payment Transactions
Maya’s payment acceptance products come with great MDRs for Philippine SMEs and startups. To enjoy a full range of cashless payment solutions, you’ll need to create a Maya Business account. After creating a business account, you can begin requesting different Maya payment solutions. Here are a few things to do when choosing the best Maya solution for your business:
Evaluate Every Maya Payment Solution
Businesses should research and evaluate all Maya products not only for their MDR rates but also for their overall value propositions. A higher fee or MDR may be worthwhile if the associated payment method can attract more sales or is more appropriate for a given business model.
For instance, while some businesses can use the cheaper Maya Terminal Lite as an ultraportable, trustworthy COD checkout solution, the device’s bigger sibling, the regular Maya Terminal, is optimized for brick-and-mortar stores that need to issue physical paper receipts.
Similarly, e-commerce store owners can use Maya Checkout to supercharge their online conversions. Maya also offers Maya Plugins, a simple-to-implement third party payment gateway Shopify-and WooCommerce-built website owners can use to facilitate website checkouts. Likewise, online businesses without websites can use Invoice Payments and Payment Links to send invoices and payment links over SMS, email, or chat that customers could then pay with any online method they wish.
Ask for a Customized Package
Maya Business is happy to offer customized packages for users with high sales volumes. These custom packages can be a great way to further bring down your sales costs and help your small business grow faster than ever. If you have an active Maya Business account, feel free to contact business.signup@maya.ph for any questions on customized packages.
Consider Value-Added Services
The great MDRs of MayaBusiness solutions are not the only reason to get a Maya Business account. SMEs with a Maya Business account can also open a Maya Business Deposit account, giving them access to some of the best interest rates in the Philippines at 2.5% per year. They may also qualify for a Maya Flexi Loan, giving them immediate access to up to PHP 2 million of extra capital. Maya also offers high levels of customer service to Maya Business account holders, ensuring uninterrupted operational continuity.
Consider the Benefits of Maya Payment Technologies
Adopting certain payment technologies can result in operational gains that compensate for their associated MDR. For instance, using a Maya Terminal or Maya QR can eliminate a large portion of human errors as well as their associated costs, resulting in net gains for the business. Small businesses that adopt these solutions are also freed from the efficiency, storage, and security costs associated with handling cash and can devote more resources towards meaningfully growing their business.
Understanding Merchant Discount Rates Helps Grow Your Business
Understanding the concept of MDR and its implications is crucial for Philippine-based SMEs and startups that are aiming to optimize their payments and cash flow. By taking a wider view of MDRs, businesses can avoid the trap of choosing the lowest cost options on face value and, instead, strike the perfect balance between delivering customer convenience and increasing cost efficiency.
Now that you understand MDRs better, sign up for a Maya Business account and Maya’s 1-2-3 Grow promo. Signing up for Maya 1-2-3 Grow entitles you to a 1% MDR on all QR Ph sales for 3 months from promo onboarding. You can even save up to PHP 14,600 for every PHP 1 million worth of sales (at 1.54% MDR). You can even boost your Maya Deposit savings to PHP 102,200 for every PHP 7 million sales at 1% MDR when compared to other payment solutions.
What’s more, the bundle also entitles promo participants to a Maya Flexi Loan offer of up to PHP 2M in just 3 months or less, which is subject to credit evaluation. You’ll even unlock an extra month of 1% MDR if you set up Maya Business as your settlement account. Sign up for the Maya 1-2-3 Grow promo today to unlock your SME’s full growth potential.
