INCOME TAX16 Sept 2026
UPI MDR from 15 October: How merchant charges compare with credit, debit card fees and credit-linked UPI | Mint
From 15 October, NPCI's new merchant discount rate (MDR) applies to some UPI person-to-merchant payments above ₹2,000. You, the customer, still pay nothing. Most payments under ₹2,000 and small-merchant transfers stay free. Merchants pay 0.4%, capped at ₹300, or a flat ₹5 on railway, telecom, insurance and fuel. Capital-market UPI pays 0.02%. This stays cheaper than credit cards, so keep accepting UPI.
Key Statutory Highlights
- NPCI has kept 95% of low-value UPI transactions below ₹2,000 and small merchant transactions completely free.
- Person-to-merchant UPI payments above ₹2,000 attract an MDR of 0.4%, capped at ₹300 per transaction.
- Credit card MDRs typically range from 1.5% to 2.5%, while debit card MDRs are capped up to 0.90%.
Actionable Advice for Taxpayers / Founders:If you accept UPI at your business, check your settlement statements or receipts after 15 October and confirm with your payment provider or bank how the new MDR is being applied. If a deduction looks wrong, ask your CA to review it before treating it as final.
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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