Ann: Annualised Paydentity GPTV Exceeds A$1.9bn in Sept 2019, page-123

Hi Upside Down.

Best way to explain it is:

Merchant Discount Rate (MDR) is top line revenue. This is the fee taken from the merchant by ISX.

Interchange (IC) is a cost of goods sold for ISX that is payable to the card issuing bank via the card scheme (such as Visa etc.)

Merchant Service Fee (MSF) is what is left over once IC has been taken from the MDR and is gross profit attributable to ISX.

MDR (Revenue) - IC (COGS) = MSF (Gross Profit)

So they are making an average gross profit (MSF) of 125bps on every $ of GPTV they process, plus also some per transaction fees they charge. Like I said above there are lots of variables at play and they will be achieving higher and lower MSF in different situations but 125bps in the average they are targeting at this time.