Stop Discrimination Against RuPay Card and UPI

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abhishek012

Stop Discrimination Against RuPay Card and UPI:

The government abolished MDR on transactions using RuPay debit cards and Unified Payments Interface (UPI) from January 1, 2020. But banks were allowed to impose MDR – 0.4-0.9% – on merchants for transactions using Mastercard and Visa debit cards. Since then, the issuance of RuPay cards has been trending down. The discriminatory approach will kill RuPay and UPI.

The government must end the discrimination on the merchant discount rate (MDR) among card issuers, as also payment systems. MDR is the charge paid by merchants to a bank for receiving payments from their customers through the digital mode.

The government abolished MDR on transactions using RuPay debit cards and Unified Payments Interface (UPI) from January 1, 2020. But banks were allowed to impose MDR – 0.4-0.9% – on merchants for transactions using Mastercard and Visa debit cards. Since then, the issuance of RuPay cards has been trending down. The discriminatory approach will kill RuPay and UPI. An across-the-board uniform MDR – 0.4-0.5% – makes eminent sense. The government and the RBI must pool money to foot the cost borne by banks and non-banking payment services firms that create the digital payment infrastructure.

Around 50 lakh merchants accept digital payments by having a point-of-sale machine, and over 5 crore by means of the QR code by the UPI. The annual cost for banks and fintech firms to maintain this infrastructure is estimated at over ₹5,000 crore. Of course, when digital payment volumes go up, the cost per transaction will be lower, but not disappear. The cost must come out of MDR that is shared by three parties: those that deploy the QR code or swipe machine to receive payments into an account linked to the merchant, the payer’s bank and the operator that allows the banks to connect to each other and tally the payments.

Zero MDR means a cost for companies that distribute the QR codes, signing up the merchants for digital payments. It will remove the incentive to spread digital payments. Digital payments increase transparency, helping tax collections, and spare the RBI the cost of printing and moving cash. We need a uniform MDR.

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Deal Subedar Deal Subedar
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True that, zero MDR mean no offers from bank on using rupay card, hence users are also not interested in rupay card…..

Royal Challengers Bangalore Royal Challengers Bangalore
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Bhai aap rupay cards ke liye marketing karto ho kya ??

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PappuPager wrote:

Bhai aap rupay cards ke liye marketing karto ho kya ??

Unofficially – yes.

Reason – for national interest.

Did i get money – absolutely no.

Do you have a lot of money ? – if your answer is yes, donate to me. I will open an NGO (Just Kidding). smile

Hope you have got answers to all your present and future questions. grinning

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myfungang829 wrote:

True that, zero MDR mean no offers from bank on using rupay card, hence users are also not interested in rupay card…..

Banks give offers on RuPay cards too but the issuance of RuPay cards has been trending down.

Super Stud Super Stud
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Rupay’s logo i find it to be very ugly idk y sweat_smile.

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xxxyyyzzz wrote:

Rupay’s logo i find it to be very ugly idk y sweat_smile.

Achaar daalo tum logo ka baith k. smile

Deal Subedar Deal Subedar
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I see more acceptance of UPI….much much more than Mastercard and Visa..
How come zero MDR is working against UPI and it will be killed smiling_imp
Even my local medical shop happily takes Rupay card as he is not charged anything where as for MC/Visa he wants surcharge to be added so that he dont loose anything.

Fact.
MDR charges are paid by merchant. having MDR charges means putting penalty on merchant to accept digital payments.
Whats is the use of all the infrastructure when merchants wont use it.
Visa/Mastercard has been in India for decades.. UPI came in 2016 and Zero MDR in 2019…just see the growth post Zero MDR…people are ready to accept digital payment on every corner of this country.

Companies makes money when we use their app, Our data is used for cross sell, upsell and even given to third party? do you see anyone complaining ??
Did anyone see Banks complaining when they make more profits as people are moving to digital means less branches, less workforce, less physical record keeping, less cheques to be issued and posted and etc etc

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Sudarshan61 wrote:

I see more acceptance of UPI….much much more than Mastercard and Visa..
How come zero MDR is working against UPI and it will be killed smiling_imp
Even my local medical shop happily takes Rupay card as he is not charged anything where as for MC/Visa he wants surcharge to be added so that he dont loose anything.

Fact.
MDR charges are paid by merchant. having MDR charges means putting penalty on merchant to accept digital payments.
Whats is the use of all the infrastructure when merchants wont use it.

Companies makes money when we use their app, Our data is used for cross sell, upsell and even given to third party? do you see anyone complaining ??
Did anyone see Banks complaining when they make more profits as people are moving to digital means less branches, less workforce, less physical record keeping, less cheques to be issued and posted and etc etc

UPI’s Competitors are coming but ya it will take 5 to 10 years time to surpass UPI.

There is no problem on RuPay card acceptance but the main problem is Private banks like Axis, yes bank, HDFC, ICICI, kotak, IndusIND etc banks are not interested to issue RuPay cards.

3 years ago all private banks alloted super premier RuPay debit card BINs -

Yes bank already allotted super premier RuPay debit card BIN – 652513

HDFC bank already allotted super premier RuPay debit card BIN – 652511

Axis bank already allotted super premier RuPay debit card BIN – 652514

Axis bank already allotted RuPay-JCB Platinum RuPay debit card BIN – 353805

Did you see any of this super premier RuPay debit card from this banks ? In fact, Axis and Yes Bank have almost stopped issuing RuPay Platinum Debit Cards.

Kotak & IndusIND bank – no RuPay Platinum debit cards and both banks set RuPay card transaction limit to 10k only.

Have you seen any new Fintect companies (Neo Banks) issuing RuPay Debit Cards ?

Ofcourse No, because Neo Banks are not interested to issue RuPay Debit Cards.

Zero MDR means Zero profit. Not only that banks need to spend money to maintain their infrastructure. most people dnt know, Card/UPI transaction proceed by banks. Private banks use world class tier 1 servers for visa/mastercard transactions and another side banks use low grade, i dnt know which class 3 or 4 servers for RuPay cards transactions. You’ve probably heard from some people Visa/mastercard have highest transaction success rate and another side some people told RuPay card is worst, always transaction failure. Why do people say that ? because banks give first priority to visa/mastercard transactions, that’s not all if any banks give worst service on visa/mastercard transactions then visa/mastercard impose heavy penalty to banks. It will take few decades, when banks will start giving priority to RuPay cards too but this will happen only when more and more people start using RuPay cards and more people will use RuPay card only when banks will issue more cards to customers including premium and super premium RuPay cards.

Royal Challengers Bangalore Royal Challengers Bangalore
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abhishek012 wrote:

Unofficially – yes.

Reason – for national interest.

Did i get money – absolutely no.

Do you have a lot of money ? – if your answer is yes, donate to me. I will open an NGO (Just Kidding). smile

Hope you have got answers to all your present and future questions. grinning

Appreciate your efforts
But is this the correct platform for all your efforts
Ultimately the work has to be done by the banks.

Deal Subedar Deal Subedar
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abhishek012 wrote:

UPI’s Competitors are coming but ya it will take 5 to 10 years time to surpass UPI.

There is no problem on RuPay card acceptance but the main problem is Private banks like Axis, yes bank, HDFC, ICICI, kotak, IndusIND etc banks are not interested to issue RuPay cards.

3 years ago all private banks alloted super premier RuPay debit card BINs -

Yes bank already allotted super premier RuPay debit card BIN – 652513

HDFC bank already allotted super premier RuPay debit card BIN – 652511

Axis bank already allotted super premier RuPay debit card BIN – 652514

Axis bank already allotted RuPay-JCB Platinum RuPay debit card BIN – 353805

Did you see any of this super premier RuPay debit card from this banks ? In fact, Axis and Yes Bank have almost stopped issuing RuPay Platinum Debit Cards.

Kotak & IndusIND bank – no RuPay Platinum debit cards and both banks set RuPay card transaction limit to 10k only.

Have you seen any new Fintect companies (Neo Banks) issuing RuPay Debit Cards ?

Ofcourse No, because Neo Banks are not interested to issue RuPay Debit Cards.

Zero MDR means Zero profit. Not only that banks need to spend money to maintain their infrastructure. most people dnt know, Card/UPI transaction proceed by banks. Private banks use world class tier 1 servers for visa/mastercard transactions and another side banks use low grade, i dnt know which class 3 or 4 servers for RuPay cards transactions. You’ve probably heard from some people Visa/mastercard have highest transaction success rate and another side some people told RuPay card is worst, always transaction failure. Why do people say that ? because banks give first priority to visa/mastercard transactions, that’s not all if any banks give worst service on visa/mastercard transactions then visa/mastercard impose heavy penalty to banks. It will take few decades, when banks will start giving priority to RuPay cards too but this will happen only when more and more people start using RuPay cards and more people will use RuPay card only when banks will issue more cards to customers including premium and super premium RuPay cards.

Merchant dont care if it is super premium card or entry level card.
again please dont look at just MDR..banking is much much more apart from MDR.
Banks have tons of avenue to make money, they will even charge you withdrawing own money or depositing cash in own account.

Even As a customer my preference will be as below
1. Acceptance without any additional surcharge
2. Acceptance without any additional surcharge
3. rewards(if surcharge is their than reward should be more than the surcharge)
4. I dont care if my card is on Visa/Mastercard or Rupay. ..why should I even care about this.

As a merchant one must be just happy accepting even entry level Rupay card (Zero MDR) vs top most premium AMEX card. ..eventually this what drive the digital penetration

Coming to the original post..which was talking about benefits of digital payments, transparency…what is the volume of digital transactions 3 years back(MDR) vs now(Zero MDR vs Rupay)..one will get the answer what is driving the digital switch.

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PappuPager wrote:

Appreciate your efforts
But is this the correct platform for all your efforts
Ultimately the work has to be done by the banks.

So, what should i do ? give me some advice. smile

Banks will not promote untill customers start demanding RuPay cards.

It’s a paradox, Banks will not promote until customers start demanding RuPay cards or customers will not ask for RuPay cards unless banks forcefully issue them to customers.

Somebody has to move forward, whether it will be a bank or a customer.

Deal Subedar Deal Subedar
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abhishek012 wrote:

So, what should i do ? give me some advice. smile

Banks will not promote untill customers start demanding RuPay cards.

It’s a paradox, Banks will not promote until customers start demanding RuPay cards or customers will not ask for RuPay cards unless banks forcefully issue them to customers.

Somebody has to move forward, whether it will be a bank or a customer.

India is moving away from cards.
UPI is the future. just see the volumes it is doing every month.

if you are looking for a card, just try to get most rewarding card as customer.

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Sudarshan61 wrote:

India is moving away from cards.
UPI is the future. just see the volumes it is doing every month.

Yes, but currently UPI only replaces debit cards and wallets.

Credit cards still dominate and now a days some fintech companies start issuing credit line on Prepaid cards, also get 1% or 2% cashback on prepaid card transactions.

Deal Subedar Deal Subedar
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abhishek012 wrote:

Yes, but currently UPI only replaces debit cards and wallets.

Credit cards still dominate and now a days some fintech companies start issuing credit line on Prepaid cards, also get 1% or 2% cashback on prepaid card transactions.

UPI replaces everything.

Total Debit card transactions in Sep2021 348779858 ~ 35Crore
Total Credit card transactions in Sep2021 184720412 ~18Crores
Total UPI transactions in Oct 2021 4.2 billion or 420 Crores ..

All this growth is because of Zero MDR and UPI does not need physical cards

Dont know why you are saying credit cards still dominate…

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Sudarshan61 wrote:

UPI replaces everything.

Total Debit card transactions in Sep2021 348779858 ~ 35Crore
Total Credit card transactions in Sep2021 184720412 ~18Crores
Total UPI transactions in Oct 2021 4.2 billion or 420 Crores ..

All this growth is because of Zero MDR and UPI does not need physical cards

Dont know why you are saying credit cards still dominate…

No bro, Credit UPI (cUPI) is not available yet.

Credit cards reach different types of customers. Those who want to pay now and repay later or repay in EMIs.

You can’t compare UPI with Credit cards. Currently UPI is equivalent to Debit cards and ewallets only.

Deal Cadet Deal Cadet
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Its rupay’s problem still no int’l payment gateways don’t have rupay support. Even google play has no rupay card support. Rupay won’t work without 2FA while visa/mastercard cards works. Rupay should introduce co-branded cards with visa and mastercard. Inside India it works as rupay while outside it will be visa/mastercard. Also increase the MDR to atleast Amex level so we will get more bank offers. Personally I hate upi now every local offline merchant allow only upi for digital transactions because of 0% MDR. UPI doesn’t give any regular rewards or cashback for every transaction.

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timelord wrote:

Its rupay’s problem still no int’l payment gateways don’t have rupay support. Even google play has no rupay card support. Rupay won’t work without 2FA while visa/mastercard cards works. Rupay should introduce co-branded cards with visa and mastercard. Inside India it works as rupay while outside it will be visa/mastercard. Also increase the MDR to atleast Amex level so we will get more bank offers. Personally I hate upi now every local offline merchant allow only upi for digital transactions because of 0% MDR. UPI doesn’t give any regular rewards or cashback for every transaction.

1st, 99% card transactions are domestic in India.

2nd, many international payment gateways already support RuPay domestic cards like Dlocol, razorpay (yes razorpay also expand in International market), Novaplay (Steam like gaming websites use Novaplay gateway to accept RuPay domestic cards), Rapyd, ccavenue etc

3rd, RuPay-International cards – Discover, Diners club & JCB network support almost 80% to 90% all International websites. (Of course not all but mostly all covered). PayPal also support RuPay-Discover cards for International e-com payment.

4th, Google play/youtube already support UPI payment. RuPay card and without 2FA will soon supported via RuPay tokenisation mode.

1000+ issuing banks support RuPay paysecure ecom, New RuPay BEPG ecom migration under process. 3 banks already live, 17 banks under issuing certifications. Therefore, minimize certification efforts and facilitate faster onboarding of member banks for RuPay BEPG ecom support.

RuPay BEPG ecom features -

5th, RuPay prepaid cards MDR charges already increase to 2.5% but do you know what happened with this ? merchants reject to accepting RuPay prepaid cards and some online merchants already disabled RuPay prepaid cards because of 2.5% MDR and you suggesting for increase the MDR to atleast Amex level means 3%+ MDR. smile This idea has already flopped. Most of the merchants can’t afford higher MDR charges.

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abhishek012 wrote:

2nd, many international payment gateways already support RuPay domestic cards like Dlocol, razorpay (yes razorpay also expand in International market), Novaplay (Steam like gaming websites use Novaplay gateway to accept RuPay domestic cards), Rapyd, ccavenue etc

3rd, RuPay-International cards – Discover, Diners club & JCB network support almost 80% to 90% all International websites. (Of course not all but mostly all covered). PayPal also support RuPay-Discover cards for International e-com payment.

4th, Google play/youtube already support UPI payment. RuPay card and without 2FA will soon supported via RuPay tokenisation mode.

5th, RuPay prepaid cards MDR charges already increase to 2.5% but do you know what happened with this ? merchants reject to accepting RuPay prepaid cards and some online merchants already disabled RuPay prepaid cards because of 2.5% MDR and you suggesting for increase the MDR to atleast Amex level means 3%+ MDR. smile This idea has already flopped. Most of the merchants can’t afford higher MDR charges.

Rupay doesn’t work in stripe, steam (direct payment without novaplay),origin,gog,Google pay (US),Amazon pay(US)

I need rupay to work like visa and mastercard without tokenisation in int’l websites and bypass 2fa

Well it’s prepaid what they are going to do if rupay increases the MDR on credit and debt cards outright ban all of them considering the fact many govt banks default provide rupay cards. These merchants shooting themselves for banning rupay. I need attractive cashback/reward points on rupay credit cards like amex so high mdr is necessary. Also rupay doesn’t have a super premium tier CC that gives luxury car rental,unlimited int’l lounge access, free five star hotel stays without enough mdr how it is possible.

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abhishek012 wrote:

Unofficially – yes.

Reason – for national interest.

Did i get money – absolutely no.

Do you have a lot of money ? – if your answer is yes, donate to me. I will open an NGO (Just Kidding). smile

Hope you have got answers to all your present and future questions. grinning

Great initiative.
I hope they won’t sell Rupay someday. If they do, all your efforts would go in vain, it would be betrayal or backstabbing you.

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timelord wrote:

Rupay doesn’t work in stripe, steam (direct payment without novaplay),origin,gog,Google pay (US),Amazon pay(US)

I need rupay to work like visa and mastercard without tokenisation in int’l websites and bypass 2fa

Well it’s prepaid what they are going to do if rupay increases the MDR on credit and debt cards outright ban all of them considering the fact many govt banks default provide rupay cards. These merchants shooting themselves for banning rupay. I need attractive cashback/reward points on rupay credit cards like amex so high mdr is necessary. Also rupay doesn’t have a super premium tier CC that gives luxury car rental,unlimited int’l lounge access, free five star hotel stays without enough mdr how it is possible.

The dream you are dreaming of will take 30 to 40 years to come true. grinning

Yes int’l websites, it will work without tokenisation.

You need to understand, people like you are just 0.001% who want this type of luxury services. smile

Visa/mastercard/Amex took 70 years to reach here.

Visa/mastercard spend more than $1 Billion to just maintain their servers & security every year.

You already know what would happen if our govt gave $1 billion to NPCI ? smile

Everything takes time. There is only one party system in china. No one can ask any ques to the Chinese govt and chinese govt is trying to push China’s UnionPay card to accept and issue every country but still even 20 years after the launch of Unionpay Card, the coverage in Europe, North America, and the Asia Pacific to 70%, 70%, and 90% respectively.

If you think, why i gave you the example of China. The simple answer is that everything takes time. Now you will understand why would RuPay card take 30 to 40 years to complete with Visa/Mastercard in the international arena. sunglasses

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xxxyyyzzz wrote:

Rupay’s logo i find it to be very ugly idk y sweat_smile.

Hindi waala ya english waala ya dono

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demerius2020 wrote:

Hindi waala ya english waala ya dono

They did a lazy job designing it. Whoever designed, should be fired.

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xxxyyyzzz wrote:

They did a lazy job designing it. Whoever designed, should be fired.

this is india they will get promotion and increment instead

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decideaim wrote:

Great initiative.
I hope they won’t sell Rupay someday. If they do, all your efforts would go in vain, it would be betrayal or backstabbing you.

It will be a very good decision if the govt sell few percentage NPCI shares to Indian private companies.

In long run, I see NPCI as a loss making company and huge burden for our country until the govt withdraws its control over NPCI.

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