UPI Payments: Merchants Pay Fee Above ₹2,000

Business Standard · business

Starting October 15, merchants will pay a Merchant Discount Rate (MDR) on UPI transactions exceeding ₹2,000. Customers will not incur any charges for UPI payments, whether for purchases or person-to-person transfers. Small vendors receiving under ₹1 lakh monthly via UPI QR codes are exempt from this fee. However, businesses classified as person-to-merchant (P2M) will pay a 0.4% fee on UPI transactions above ₹2,000, capped at ₹300 for payments of ₹75,000 or more.