BML Cuts Merchant Fee to Record-Low 1%, Launches New Advance Facility for Businesses

Bank of Maldives (BML) has announced a landmark reduction in its Merchant Discount Rate (MDR) to 1% on all BML debit card transactions made through its Point-of-Sale (POS) terminals, marking a historic move to support local businesses. The announcement, made in celebration of the Bank’s 43rd anniversary, comes alongside the introduction of a new Advance Merchant Settlement facility designed to ease cash flow challenges for merchants.

This decision represents the first-ever reduction in the merchant fee since BML introduced debit card services in 2000, when the standard rate of 2.5% was set. The Bank stated that this revision will directly benefit over 7,000 merchants nationwide who rely on BML’s digital payment infrastructure for their daily operations.

“The Bank’s success is closely tied to the success of our business customers,” said Mohamed Shareef, CEO and Managing Director of Bank of Maldives. “On our 43rd anniversary, we are proud to introduce meaningful measures that will ease costs and improve access to finance for businesses across the country. Reducing the merchant fee to 1% is a significant change that we believe will make a real difference for thousands of businesses.”

Alongside the MDR reduction, BML launched its new Advance Merchant Settlement facility, offering unsecured financing of up to MVR 2 million based on a merchant’s past six months of POS sales. The product is designed to provide quick and convenient access to working capital, with repayments automatically deducted from future daily sales — allowing businesses to manage cash flow efficiently without added financial strain.

In addition to these business-friendly measures, BML also announced an increase in foreign spending limits for its debit cardholders. Effective November 11, 2025, customers can now spend up to USD 1,000 per month for overseas POS transactions, while limits for medical and travel expenses have been raised to USD 3,000 per month. The Bank confirmed that these changes are automatic and do not require customers to submit new applications.

The series of initiatives unveiled this week reinforce BML’s ongoing efforts to promote financial inclusion, digital transformation, and business resilience across the Maldives. As the nation’s largest financial institution, BML emphasized its continued commitment to empowering entrepreneurs, supporting local enterprises, and enhancing customer experience as it celebrates 43 years of service to the Maldivian people.