UPI Merchant Charge: Merchant Fee on UPI and Rupee Card Transactions!

The government expects to re -connect the merchant discount rate (MDR) on transactions with UPI and Rupee Debit Card. Banks are currently demanding fees for large businesses, even if the transaction is free. Its proposal was sent to the government. UPI, however, is free to small traders like the previous. Because of this, the general public will not bother.

Fee on UPI and Rupee

It has been reported that the banking industry has demanded traders to collect merchant fees who sell more than Rs 40 lakh annually. Banks and payment companies also argue that big traders should also charge on UPI and rupee cards when they are already paying for visas, master cards and credit cards.

From big traders

In the budget of 2022, the government said that the purpose of MDR was to promote digital payments. But now UPI has become the most commonly used payment tool. The government can charge big traders instead of raising the cost of this facility. It has been reported that the government is considering the proposal.

Merchant charges

According to this proposal, the government can implement the tire system. This means that small traders are charged more. Small low fees can be paid. MDR is a fee that pays a merchant discount rate to its bank to complete the digital payment process. If the customer pays for UPI or Debit Card, banks and payment companies have to bear the cost of the IT system. The merchant fee is proposed to replace it. The government has now canceled the fee.