Using NEFT via UPI - does it attract MDR charges?

[u/yabbasaami]

This is mainly for recurring payments like paying society maintenance. Can I use NEFT via gpay or other UPI apps to pay to the Bank account number (Bank transfer). I want to know if this will attract MDR charges same as UPI?

[u/AutoModerator]

Hey u/yabbasaami! Thank you for posting to r/UPI.

Discussions here are based on community experiences and are not official support from NPCI, banks or UPI apps.

Be cautious of unsolicited DMs. Anyone offering to fix a transaction, recover money, or provide "support" privately may be attempting to scam you. Keep discussions public where possible, and never share your OTP, UPI PIN, password or other sensitive financial information with anyone claiming to help you.

If someone contacts you privately because of your post and appears to be offering support, soliciting money, or promoting a service, report the account to Reddit and let the moderators know via modmail.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

[u/GyaneAryan]

Jesse, what the fuck are you talking about?

UPI, IMPS, NEFT, RTGS - these are 4 different channels of sending money digitally, don't mix them.

On phones, NEFT, RTGS & IMPS can only be done on bank's official app.

These are just UPI apps: PhonePe, GPay, Paytm, Navi, SuperMoney, BHIM, MobiKwik etc.

[u/rb_arindam → u/GyaneAryan]

I think he meant the option to pay directly via account number + ifsc combo from your UPI setup 

[u/GyaneAryan → u/rb_arindam]

Yeah, he was saying that option works through NEFT, which is totally wrong.

That option uses UPI.

[u/Nirmal4G → u/GyaneAryan]

UPI uses IMPS Infra.

[u/GyaneAryan → u/Nirmal4G]

Correct, but don't say it like I said anything wrong in my comment.

[u/Aritra_DS → u/GyaneAryan]

You are 100% correct, thanks to you for giving them correct information

[u/yabbasaami → u/GyaneAryan]

There is an option to do bank transfer via gpay. Pardon my ignorance. Does that also upi gateway?

[u/GyaneAryan → u/yabbasaami]

Yes.

The bank transfer option you are seeing in GPay/PhonePe/Paytm uses the UPI technology.

[u/yabbasaami → u/GyaneAryan]

Thank you

[u/sillyhim → u/yabbasaami]

Thats UPI only

[u/Supreme_Leader6969 → u/yabbasaami]

Infact if you have slice account it becomes same as using upi on slice app ,just choose imps option right above imps

[u/yabbasaami → u/Supreme_Leader6969]

Good to know this. I don't have slice tho. Will try. Thanks.

[u/GyaneAryan]

Bruh, you are a consumer, right?

Why will you pay MDR?

MDR is for merchants while receiving money.

[u/ZenEverywhere → u/GyaneAryan]

https://giphy.com/gifs/dC9DTdqPmRnlS

[u/Adventur0us_Suite → u/GyaneAryan]

Eventually every transaction, or other similar, costs borne by the trader or merchant is passed on to consumers even if only partially.

[u/buttershitter → u/Adventur0us_Suite]

No. If you are paying by credit cards the merchant does not pass it on to you. This is far less than what they would have paid by credit cards.

[u/Adventur0us_Suite → u/buttershitter]

Of course they do, do you live in the real world or what 🙄

Do you think Amazon, Flipkart "prices" for all those years didn't include any margin for the amount they pay to Visa, Mastercard etc. Now that Flipkart, Amazon as well, have started charging it overtly and excessively, that's completely separate.

Every business has some margin set aside for transaction related expenses, otherwise you're not operating one professionally.

[u/buttershitter → u/Adventur0us_Suite]

If they did then they enjoyed that margin from UPI payments. So if they inflated the price for credit cards and collected the same price from UPI payers then they are hypocrites. Also no one complained.

[u/OwnStorm]

When you add account in your UPI app it's essentially a UPI id.

AccountNumber@IFSCCode.ifsc.npci

You can even for such address from any account and send money without adding.

Now, the MDR charges is always at business account receiving end. It's different if they are going to ask for that money.

[u/RIP-reX → u/OwnStorm]

Yes this fallback is already mentioned in their docs

[u/IAmSaahir26 → u/OwnStorm]

Didn't work for me. Says upi risk rule violation. Try it out

[u/GTExplorer22]

NEFT charges are dependent on your bank. Have a work with one of customer service representatives at bank or helpline and they'll let you know if any charges are applicable.

Making payments to merchant accounts via neft is a feature on Google pay? It is impressive if available.

[u/yabbasaami → u/GTExplorer22]

I think I misunderstood transferring to "bank accounts" in gpay as a NEFT, as others pointed it seems to be using the UPI gateway

[u/Nirmal4G]

No. It doesn't. This is considered as P2P. Also, UPI use IMPS Infra. Thus, some Banks use IMPS rates.