Government Weighs Charges On UPI Payments Over Rs 3,000

[jeh]

When UPI was launched, from 2016 to 2019 — for a total of 4 years — MDR charges used to apply and still UPI kept growing.

There used to be a 0.1% MDR charge for transactions up to ₹2,000 and 0.25% MDR for transactions above ₹2,000.

Merchants had no problem with it.

But now, after making MDR free, merchants have gotten used to it in such a way that —

When RuPay Credit Card via UPI charges 1.25% to 2.25% MDR, they refuse to accept it. Yet they happily accept 3% to 3.5% MDR on Amex and Diners Club cards.

If you try to explain this, merchants say:

“RuPay Credit Card on UPI has charges imposed by the Indian government, that’s why we’ve disabled it.”

But when you ask them — “You're paying 3% to 3.5% MDR on Amex and Diners Club, what about that?” —

Then they themselves start explaining, “That’s charged by Amex and Diners Club companies, not by the government. 🤣🤣

Since when AMEX is charging 3% MDR?! Today my mom just signed up for new AMEX merchant acc for her business and it's 1.90% + GST.

 

[Abhishek012]

Since when AMEX is charging 3% MDR?! Today my mom just signed up for new AMEX merchant acc for her business and it's 1.90% + GST.

I read somewhere—maybe on SBI Bank’s site or on PhonePe, I can’t remember—that Amex is offering new registerted users 1.90% + GST as a limited‐time offer on accept payments up to the first ₹2 lakh (or so). After that, it’ll go up to 3%+GST.

 

[jeh]

I read somewhere—maybe on SBI Bank’s site or on PhonePe, I can’t remember—that Amex is offering new registerted users 1.90% + GST as a limited‐time offer on accept payments up to the first ₹2 lakh (or so). After that, it’ll go up to 3%+GST.

No, it’s not a limited-time offer — that’s the standard rate we’ve been offered regardless of the transaction volume. We received same offers from IndusInd, Axis, MSwipe, and Pine Labs PoS for AMEX. Ultimately, we chose to go ahead with Pine Labs.

I don’t have any firsthand experience with SBI Payments PoS, but I can confirm that PhonePe PoS does not support AMEX. It has never worked for me, and their website doesn’t mention AMEX acceptance either.

According to PhonePe’s website: “Customers can make payments using debit cards, credit cards, and UPI by scanning the QR code on your PhonePe POS Device. You can accept payments from domestic VISA, Mastercard, and RuPay cards. Only international RuPay cards are accepted.”