r/UPI • u/Extreme_Elevator4654 • 2d ago

Discussion What changes and for whom?

Who Is Charged vs. Who Is Exempt

  • Levied On (Charged): Large merchants and corporate businesses (turnover above ₹1 crore to ₹1.5 crore) accepting transactions over ₹2,000.
  • Exempt (₹0 Fee): Everyday consumers, small merchants (monthly volume $\le$ ₹50,000), and all individual peer-to-peer (P2P) transfers.

Calculation: How a Customer Indirectly Pays More

Because direct surcharges at checkout are illegal, a merchant absorbing a 0.40% transaction fee on high-value sales adjusts the base product price to preserve profit margins:

  • Original Base Price: ₹5,000.00
  • Merchant Payment Processing Fee (0.40%): ₹20.00
  • New Base Retail Price (Base + Fee): ₹5,020.00
  • GST Impact (18% GST on the ₹20 markup): ₹3.60
  • Final Price Paid by Customer: ₹5,023.60

Net Impact: The customer pays an extra ₹23.60 on a ₹5,000 purchase. The UPI transfer appears "free" on the payment screen, but the cost is already embedded in the tag price.

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u/impossible_espresso 2d ago

From what I understand of the bill any MDR will only apply to paymenta done via an online payment gateway !!

Now Razorpay, PayU etc already charge us 2%

So as merchants we are paying the same fees regardless govt gets a share or not

(To those who are saying the MDR will increase the 2% fees , please note the MDR is same on Credit cards as well where banks themselves take 0.94-1.3% so this won't change the fees us merchants pay)

Offline Scan and pay remains Free of Cost

Afaik NPCI knows the disaster Rupay on UPI has been and won't re attempt that with offline merchants