NPCI recommends PPI/Wallet companies charges for merchant transactions via UPI:
Before start let me tell you, MDR is paid by the merchant, not customer. Customers need not worry about MDR charges.
Prepaid Payment Instrument (PPI) charges for merchant transactions carried through the Unified Payments Interface (UPI) are in place. A recent circular from the National Payments Corporation of India (NPCI) suggests that the are following charges will be applicable on merchant transactions from April 1.
Using PPIs on UPI from will attract interchange at 1.1 percent on transaction value for amounts over Rs 2,000. For industry programme merchant category codes, the interchange is as follows:
The PPI issuer will pay about 15 basis point as a wallet-loading service charge to the remitter bank and an interchange is not applicable in terms of peer-topeer (P2P) and peer-to-peer-merchant (P2PM) transactions between bank account and PPI wallet.
Broking firm Equirus says that as per existing guidelines on debit cards, the Merchant Discount Rate (MDR) charges range from 0.3 to 0.8 percent. So, this could be the first step; we may incrementally see interchanges being announced on other modes of payments as well. Equirus says around 65-70 percent of UPI P2PM transactions are of a value of more than Rs 2,000. And so, with introduction of an interchange of about 0.5 to about 1.1 percent,
Equirus believes that there is adequate possibility for various stakeholders in the system. So this should be seen positively for credit card companies as the risk of any cap on MDR actually reduces, it says.
Can you explain this to a normal users like me?
Who will pay to whom how much?
I see there are 5 parties involved here.
1. Banks
2. Wallets (Paytm, Mobikwik)
3. Merchants
4. Customer
5. RBI/Govt.
InvestPotato wrote:customer will pay - that simpleCan you explain this to a normal users like me?
Who will pay to whom how much?
I see there are 5 parties involved here.
1. Banks
2. Wallets (Paytm, Mobikwik)
3. Merchants
4. Customer
5. RBI/Govt.
caks2006407 wrote:Nope, I think it is more complex then you think.
customer will pay - that simple
caks2006407 wrote:No. MDR fee will pay by merchants.
customer will pay - that simple
InvestPotato wrote:Can you explain this to a normal users like me?
Who will pay to whom how much?
I see there are 5 parties involved here.
1. Banks
2. Wallets (Paytm, Mobikwik)
3. Merchants
4. Customer
5. RBI/Govt.
MDR fee will pay by merchants.
If you are a customer then you will not have to worry about anything. Just enjoy your life. 😀
abhishek012 wrote:I have merchant QR too.MDR fee will pay by merchants.
If you are a customer then you will not have to worry about anything. Just enjoy your life. 😀
abhishek012 wrote:MDR fee will pay by merchants.
If you are a customer then you will not have to worry about anything. Just enjoy your life. 😀
Merchant is simply gonna put that cost onto customers. There's nothing such as free cookies in the world.
Telecom, utilities and Mutual funds expected to absorb the charges. Rest would definitely pass on to the customer.
rohithkumarsp543 wrote:Merchant is simply gonna put that cost onto customers. There's nothing such as free cookies in the world.
No, merchant already paid higher MDR on debit cards.
Do you find any merchant who charge extra for debit card transaction ?
Also small merchants get zero MDR till Rs2000.
@InvestPotato Also note - this is only for Wallet UPI payment acceptance. Normal P2P and P2M transaction from bank account UPI is still Free.
abhishek012 wrote:
No. MDR fee will pay by merchants.
Do you pay debit card MDR on any websites/merchant payment ? ofcourse not.
Some merchants do charge money as "payment gateway charges". I think that covers MDR only.
Big merchants don't charge, but smaller ones do have an option of directly adding this MDR to the customer bill. For e.g. SHCIL website charges some 10 rupees while investing in rbi bonds.
androgame wrote:Govt websites always pass on to customers.Some merchants do charge money as "payment gateway charges". I think that covers MDR only.
Big merchants don't charge, but smaller ones do have an option of directly adding this MDR to the customer bill. For e.g. SHCIL website charges some 10 rupees while investing in rbi bonds.
So basically these are the charges if you use your wallet amount for UPI transactions??
Previously wallet to UPI is not allowed right and also wallet loading is charged for CC..
Now does it applicable for wallet loading using UPI also?
panchabhut wrote:Apps like Paytm have already started charging platform/convenience fee for recharges.. it'll extend to UPI transactions.Telecom, utilities and Mutual funds expected to absorb the charges. Rest would definitely pass on to the customer.
karandutta wrote:as of now, bank>bank via UPI remains free.
Apps like Paytm have already started charging platform/convenience fee for recharges.. it'll extend to UPI transactions.
It had to happen.. UPI was free to increase adoption. it cant be free forever..
What happens to p2p upi transfers? What if I send someone 10k?
Bajaj wallet already started implementing it
Wallet Loading charges : 2%
Wallet to Bank transfer : 1% (Send to Bank)
All Wallet to bank transfers above 2k failing 
This month no Send to bank offers also
If something falls on merchant head and if merchant can't bear it then customer will suffer atlast 
rajeshsns wrote:
Today only confirmed that UPI is free. Is this correct info? @abhishek021
Yes, Bank account link UPI is 100% Free.
Bank account link means saving account/salary account/pension account/current account link UPI payment is 100% Free.
Already mentioned in my post this MDR charges will implement on PPI Wallet balance link UPI payment and that too if transaction is above Rs2000.
If we pay our Amazon wallet balance link UPI to any merchant Rs2001 then MDR charges will apply and this MDR fee will paid by merchant.
Also note Wallet UPI to bank transfer is also Free and Bank account link UPI to Wallet alod also Free.
PRAVEENINDIA wrote:You are wrong, Bajaj wallet load via UPI is Free. 2% is for credit cards loading.Bajaj wallet already started implementing it
Wallet Loading charges : 2%
Wallet to Bank transfer : 1% (Send to Bank)
All Wallet to bank transfers above 2k failing
This month no Send to bank offers also
If something falls on merchant head and if merchant can't bear it then customer will suffer atlast
abhishek012 wrote:Bro loading through credit card is only 2%
You are wrong, Bajaj wallet load via UPI is Free. 2% is for credit cards loading.
Bajaj wallet to bank transfer via UPI also Free.
Paying credit card bill through UPI also chargeable ?
dear oh dear, leeching the middle class when ambani-adani hoarding 100% $$$$$$$$$$
PRAVEENINDIA wrote:Bajaj wallet to bank via UPI is 100% Free bro.
Bro loading through credit card is only 2%
Wallet to bank using send to bank 1% charges
By the by who will load bajaj wallet using upi
Santosh1029 wrote:Paying credit card bill through UPI also chargeable
?
No, Charges paid by merchants. 100% Free for customers.
Credit card bill payment websites/apps already paid approx 1% MDR through net banking/debit cards payment.
When you paid credit card bills via net banking and debit cards. Net banking and debit card also also charges upto 0.9%+GST. This MDR charges paid by merchant.
abhishek012 wrote:Wallet -> send to bank option
Bajaj wallet to bank via UPI is 100% Free bro.
Where you saw 1% charges ?
princesspeach wrote:Middle class dnt need Wallet balance to use via UPI.dear oh dear, leeching the middle class when ambani-adani hoarding 100% $$$$$$$$$$
PRAVEENINDIA wrote:Use Bajaj Wallet UPI, see here more details - https://www.desidime.com/discussions/new-trick-...
Wallet -> send to bank option
abhishek012 wrote:I have used previously bro but transactions failing now and get reversed. This month transaction limit exceeded with only reversed transactions
Use Bajaj Wallet UPI, see here more details - https://www.desidime.com/discussions/new-trick-...
PRAVEENINDIA wrote:Yes, Bajaj wallet UPI is still under development that's why.
I have used previously bro but transactions failing now and get reversed. This month transaction limit exceeded with only reversed transactions
abhishek012 wrote:Yes Starting month was good but now not stable and reliable
Yes, Bajaj wallet UPI is still under development that's why.
Bajaj wallet UPI is still not fully live yet.
Merchant is simply gonna put that cost onto customers. There's nothing such as free cookies in the world.
By the way small merchants no mdr fee for transactions upto 2k via Wallet link UPI payment.