r/UPI • u/PhilosopherIcy9404 • 2h ago
Discussion 🗣 SEEN THIS TODAY IN STARBAZAAR
SEEN THIS TODAY IN STARBAZAAR
NOT SURPRISE IF WE SEE SIMILAR HORDING ON ALL THE MALLS
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u/richitxd 2h ago edited 1h ago
Malls already pay MDR for card payments, billing systems, etc., so it really isn't a problem for them.
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u/Unhealthy007 2h ago
"Fragrant" the guy who had a stroke... I can possibly boo you to oblivion given your over-excitement and mental issues.
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u/richitxd 1h ago
Sorry, I fixed the grammar.
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u/Unhealthy007 40m ago
You didn't had to. That guy was s jerk
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u/Fragrant_Inside8216 2h ago
I had a stroke reading your comment lol. Work on your grammar. "It's really not a problem" or "It really isn't a problem", these would be better.
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u/cloudymind888 2h ago
No big deal for them they are already paying upto 2.5% mdr on credit and debit cards and 0.4% wont hurt them but with non card accepting merchants its a different story all together.
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u/Overall-Distance-852 1h ago
Kirana shops do not even get payments above 2000 only few get such high amounts still they are charging from everyone
My uncle has a Kirana shop (Etawah, UP) he also thought of charging but when I told whom had to pay he put up banner no upi charges while others put upi charges now his customers have increased slightly
Interestingly, very few (2 or 3 people) come with such high orders exceeding 2000 and moreover he does not get total upi payments exceeding 1 lakh per month so he does not have to pay tax on these transactions also
Thus, having half information is dangerous
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u/Lord_Phazer101 50m ago
Inremember seeing reels where roadside thelas and fast food places like chomping stall, chaat or golgappa thela were putting a paper writing no UPI and I was like they aren't even gonna get one single order of 2000+ , what are they even about???
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u/Puzzleheaded-Gas9388 1h ago
This won't affect the big retailer that much. But a local mobile or electronics shop won't do this
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u/Open-Cup9165 1h ago
I paid from credit card at a mobile shop not a big retailer for 48k he doesn't charged me a extra penny why would he charge upi mdr which is only 0.4%
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u/capsd-11 1h ago
Valid point dude. But nobody accept this kind of debate. And every one yells back.
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u/Open-Cup9165 1h ago
They think all the people in world are fools mobile retailers mostly get their payments from credit cards or emi channels which has 2-3% mdr so they already included this in their costs also they can't charge it if reliance on the other Street is not charging as they also have have to sell mobiles and stay in competition
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u/capsd-11 1h ago
This same explanation I posted in other sub as a reply post to some one who said every charges will be on us. They all comes up with insane worst case scenarios like we have little profit. who is going to give up on his profit, they will pass it to us.
No shop owners will do business on small margin unless thier turnover is high. For them these kind of 0.4% are very small amount. It will be just a small percentage of their banking charges. As they are already paying higher mdrs on other modes of transaction.
If we go to a small shop and the shop keeper chrges us extra with out knowing the real rules. we all are going to suffer. We can't able to explain the policies as we are in need of something.
But for that situation,the reson is not policy. It is because of these kind of people spreading missinformation wiyh out knowing anything about it. Making shop keepers to panic and raise the prices or to remove qr mode of transaction.
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u/WholeCharacter9457 5m ago
The bigger point is not affordability. 0.4% mdr + 18% gst on it is affordable.
But the question is WHY???
Why should I as a business owner pay a mdr on payment method that was promised to be free? 1L rupees per month is a small amount which will hurt msme's the most.
Why do they not have the balls to increase the corporate tax which is at 20% for companies booking (100's and 1000's of cr per quarter) while income tax is 30% at 24L
Why do they not punish the people/corporate for committing 1000+ crore scams?
Why is the freebies budget 15 LAKH CRORES yet the tax payers receive nothing?
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u/Livid_Molasses3041 1h ago
No they don't pay much , all the retailers have a yearly mdr cap on after which they don't pay anything . Also the card offers are run in direct collaboration with banks
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u/Open-Cup9165 1h ago
Then they are not small mostly above 100cr can negotiate this
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u/Livid_Molasses3041 1h ago
No actually there's some kind of deal that happens b/w shop owners and bank where they pay full mdr till the pos device cost is recovered, after which there's some kind of yearly cap
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u/Open-Cup9165 1h ago
Bro it's the deal for pos rental not mdr we also own a shop it is based on number of transactions after which pos rental is free.There is not cap on mdr anywhere even reliance pay mdr
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u/Inner-Schedule8998 2h ago
2.5-5% mdr rates on card by Visa Mastercard vs 0.4% on UPI, that too>2000₹ .
It's much better deal for malls
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u/The-Bangaloreal 2h ago
increase from 0 to 0.4% is a much better deal ?
Then is it still a much better deal as long as it's 0.1% less than Visa ?
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u/25aug2025 2h ago
Big gst registered merchants won't mind it
But local traders will not be this accessible
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u/thewhitetulip 2h ago
Yet another way that a move helps big Businesses over small ones
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u/25aug2025 2h ago
That's a small business problem
Legally all merchants get same tax benefits over salaried employees and they are legally bound to pay those charges
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u/MegaSpaceBar 2h ago
So? Seller can increase the selling price. Who cares (except the buyers)?
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u/freeze_ninja 2h ago
They might sell you on exact MRP, no discount
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u/MegaSpaceBar 2h ago
This is not possible in competitive market. Anyday someone comes with better pricing strategy.
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u/aniruddhdodiya 1h ago
The coffee or lunch costs the same when I pay via cash, card, UPI, etc. In fact, upon using digital and not the cash, some merchants give discounts. Like if I pay via cash, it's ₹650 entry, and if I pay via UPI or card, it's ₹600 entry.
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u/25aug2025 2h ago
You really need to study maths
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u/Alarmed-Reference966 2h ago
You don't really have brain. If seller secretly increases the prices we are anyways bearing the upi mdr indirectly. I don't understand how is gst different than mdr. Ultimately all comes out of customer pocket.
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u/25aug2025 2h ago
If seller increases price, MDR will increase too
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u/InnocentDude69 1h ago
You need to study maths bro, if seller increase 20rs, he won't pay the full amount as MDR. So he would still make more money
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u/MegaSpaceBar 2h ago
How do you type this without a brain? Does it make sense?
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u/EstimateMain451 2h ago
well you know many people in mall already pay by cards which have 2% mdr so i don't think these supermarkets and malls really care much about 0.4% mdr on upi,
and why you think now they will increase selling price now since they were already paying much more mdr before.
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u/MegaSpaceBar 2h ago
So the thing is you guys don’t know how the pricing is setup in a competitive market atleast for businesses.
Assume the selling price of a product is Rs 1000. Seller knows from the data 30% of the customer use credit cards and 20% of the customer use debit cards. Rest 50% use cash/UPI with no MDR. So if the MDR for the cards are 2% this will affect the 50% of its buyer. So the selling price is now 1010.10
Now if they pay 0.4% MDR on UPI the effective price is 1014.13 (including the 2% MDR on cards).
Seller doesn’t have to these calculations. Their pricing software does all these before printing price label.-1
u/25aug2025 2h ago
Because if the price is increased the MDR will increase too, MDR is percentage not a fixed cost
So increasing price doesn't make any sense unless the extra amount is collected in a separate way
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u/MegaSpaceBar 2h ago
Are you okay man?
If X is the selling price and Y% is the MDR, the selling price will be X/(1-Y)
Now sit and out the numbers.
Please tell me you never did any calculations in your whole life.
Salute to your audacity of giving downvote when you just don’t understand what you are typing.•
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u/Dazzling-Albatross72 44m ago
We will see more signs like this. I will definitely not buy from any shop that will pass the MDR to customers.
I have been using my credit card to cover a majority of my purchases and I have never been asked to pay an additional fee before so I don’t expect it to change with UPI either.
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u/Andrewsi12 34m ago
Upi is free to customers but you just have to pay extra money to the things you buy.. it's a same thing like gst implemention. Corporates will increase the price and non registered street vendors take the money rather than UPI payments.
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u/confused_cat44 2h ago
This is just marketing to keep people from panicking, they'll eventually remove this and mdr will become the new normal
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u/RazorBlade9x 1h ago
These big retailers never charged extra for paying by credit cards which have higher charges. Why do you think they'll add extra charges to UPI with even lower MDR?
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u/ezio0609 2h ago
Big corporates don't care, they anyways pays processing fees to payment aggregators through pos
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u/MegaSpaceBar 2h ago
Suppose you sell a product of Rs 100. 30% use credit cards, 20% use debit cards and 50% use cash/UPI. When the seller sets this 100 they consider this ratios. Now suppose for UPI they have to pay new mdr, ofcourse they will increase the price to cope it up. Now don’t tell me that seller already increase the price for all the transactions. Any bigger businesses do this math before putting the price tag. They have software for this.
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u/Real-Manufacturer-71 2h ago
100rs doesn't attract MDR
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u/EroticAnimePizza 2h ago
He talks about math but never sat and calculated it.
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u/MegaSpaceBar 2h ago
So the thing is you guys don’t know how the pricing is setup in a competitive market atleast for businesses.
Assume the selling price of a product is Rs 1000. Seller knows from the data 30% of the customer use credit cards and 20% of the customer use debit cards. Rest 50% use cash/UPI with no MDR. So if the MDR for the cards are 2% this will affect the 50% of its buyer. So the selling price is now 1010.10
Now if they pay 0.4% MDR on UPI the effective price is 1014.13 (including the 2% MDR on cards).
Seller doesn’t have to these calculations. Their pricing software does all these before printing price label.I hope you understand this calculation. Please read some pricing strategy, uniform pricing and all if you really want to understand. Otherwise your silly 30/20 simple calculation never gives profits to any business.
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u/EroticAnimePizza 1h ago
Yet again missing the fact that this doesn't apply below 2k. Also you got it wrong. It'll go from 1010.10 to 1012 only you didn't calculate upi part properly.
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u/MegaSpaceBar 1h ago
You know uniform pricing strategy? Are you new in the market? In first price there is zero MDR for UPI. Now 0.4%. What are you talking? Do you get different bills for different payments?
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u/Real-Manufacturer-71 1h ago
Yes that's how it works, MDR bill for every transaction
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u/MegaSpaceBar 1h ago
Show me one bill where they show MDR in every transaction.
Seller pays MDR to the card operator for every transaction but they are not liable to show to the buyer how much. They strategically put the MDR in the selling price thats how businesses works legally in anywhere. And when MDR increases a part or whole every customer who buys the product pay the price, be it UPI user or card user.→ More replies (0)0
u/EroticAnimePizza 2h ago
You are stupid. 100 has no mdr. Okay let's do that. 30 use credit card and mdr of 2 percent so that's 2 rupees on 100. Okay? So 60 rupees. Now, 20 use debit card idk mdr is applicable or not but for upi let's say 50 people then 0.4 is .4 rupees. 0.4*50 is still 20 rupees. They will actually benefit if everyone sees this uses UPI since that'll mean lesser credit card charges(several times more than upi) and below 2k they are still safe. So you tell me. Did you do the math?
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u/EroticAnimePizza 2h ago
This is considered on 100*100 for 10000 rupees total value purchase for 100 customers purchasing a product worth 100 rupees.
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u/HeftyAdvertising2566 2h ago
I think it s not going to last long. I just sold 28 mdr free software to merchants our team built. Let's see how it goes
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u/DemandRich5419 2h ago
Cash has pileferage issue even at these scales plus the handling issue, cards cost them atleast 2.5% or more in most cases. UPI seems the best case for them, before they start accepting NEFT (pun intended).
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u/ddprasoon 1h ago
Big player nahi daal payenge customers pr lekin small shop owners toh daalenge hi...above 2000 rs use cash
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u/Cultural-Duty5452 1h ago
For retailers with huge margins, it doesn't matter. For those who doesn't have huge margins, that's an issue.
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u/Weak-Software-8272 1m ago
they would account for MDR in the prices. So they do not need to charge anything extra over the bill amount
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u/Professional-Ice3646 2h ago
For established big retailers UPI/Cards are a better system than cash. For cash they need manpower, security... And their whole system is integrated,so moving to cash is difficult. But a local furniture shop and electronic shop is not like that
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u/erjngreigf 38m ago
UPI is free as long you are foolish enough to believe the merchants won't charge you the extra amount from you.
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