GENERAL16 Sept 2026
UPI MDR explained: How new charges compare with debit, credit cards
A new merchant discount rate, called MDR, now applies to some UPI payments, capped at Rs 300. It affects businesses that accept UPI from customers. For comparison, credit cards can cost merchants 1.5-2.5% and debit cards up to 0.9%. Person-to-person transfers stay free. So UPI often stays the cheaper option. Check your monthly payment bills and ask your provider how this applies.
Key Statutory Highlights
- The new UPI merchant discount rate is capped at Rs 300.
- Credit cards can cost merchants 1.5-2.5%, while debit cards can cost up to 0.9%.
- Person-to-person UPI transfers will continue to carry zero charges.
Actionable Advice for Taxpayers / Founders:Review your recent payment settlement statements and confirm with your bank or payment provider whether any UPI charge now applies to your business, since the exact impact can vary by provider.
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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