STARTUP LEGAL4 Oct 2026
Industrial marketplace Pneucons disables UPI on orders from Oct 10, co-founder says ‘MDR ate 94% of our margins’ | Company Business News
Ahmedabad-based industrial marketplace Pneucons will stop accepting UPI payments from October 10. A new 0.4% merchant discount rate (MDR) applies to person-to-merchant UPI transfers above ₹2,000 from October 15, 2026. Its co-founder says this charge eats 94% of the company's margin on such orders. Merchants must bear this cost, not customers, so low-margin sellers may need to review their payment options.
Key Statutory Highlights
- From October 15, 2026, a 0.4% MDR applies on person-to-merchant UPI transfers above ₹2,000, while person-to-person UPI transfers stay free.
- Pneucons will disable UPI from October 10 because on a ₹10,000 order its ₹50 commission would shrink to ₹2.80 after the charge.
- Merchants bear the MDR cost and cannot pass it to customers; for transactions of ₹75,000 and above, the charge is capped at ₹300 per transaction.
Actionable Advice for Taxpayers / Founders:If you accept UPI on orders above ₹2,000, work out what the 0.4% MDR leaves of your margin, and keep an alternate payment option ready. Confirm your exact cost and credit position with your accountant or bank before changing anything.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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