Hot Deal

Stop Discrimination Against RuPay Card and UPI

346°
Finance Ninja
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.
Disclaimer
We are not SEBI/IRDA registered. The information provided herein is for education purposes only. We will not be responsible for any of your profit/loss with this channel's suggestions. Consult your financial advisor before making any decisions.
Top Comments
Deal Subedar Deal Subedar
Link Copied

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

Finance Ninja Finance Ninja
Link Copied
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
Benevolent Benevolent
Link Copied
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
Benevolent Benevolent
Link Copied
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
Finance Ninja Finance Ninja
Link Copied
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.
24 Comments  |  
8 Dimers
  • Sort By
Deal Subedar Deal Subedar
Link Copied

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

Finance Ninja Finance Ninja
Link Copied

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

Deal Subedar Deal Subedar
Link Copied

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

Finance Ninja Finance Ninja
Link Copied
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
View 8 more replies
Finance Ninja Finance Ninja
Link Copied

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

Finance Ninja Finance Ninja
Link Copied

Achaar daalo tum logo ka baith k. smile

View 3 more replies
Benevolent Benevolent
Link Copied
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
Finance Ninja Finance Ninja
Link Copied
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.
View 1 more reply
Helpful Helpful
Link Copied

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.

Finance Ninja Finance Ninja
Link Copied
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.
View 2 more replies
replyuser
Click here to reply
Reply