MDR for Rupay Card transactions - Paytm / PhonePe / Gpay Business Accounts

[financewizard]

I am doing a freelancing service/consultation. I have been using my personal Gpay account to receive payment. Usually, the payments are very small amounts (not exceeding Rs 2000) and are from a limited number of people. Hence I never opened a proper current account or had Business UPI accounts to collect money. However, now I am planning to open a Gpay / PhonePe / Paytm Business account to receive payments (and most of my customers are opting to pay via Rupay Credit Card). Now I am concerned about the annual/monthly/transaction-based charges associated with such accounts and the MDR rates that these intermediaries charge for Card Payments.
Can someone please say which platform is good for small-scale businesses to receive money and the charges associated with it? If I agree to accept rupay card-based payments - what will be the MDR slabs/rates?
Not expecting more than 50 transactions (max) in a month and transaction value in the range of 500 - 2000 per transaction. Business type - Services / Consultation. The business is not registered and is more like a freelancing service.

 

[Tejo]

I am doing a freelancing service/consultation. I have been using my personal Gpay account to receive payment. Usually, the payments are very small amounts (not exceeding Rs 2000) and are from a limited number of people. Hence I never opened a proper current account or had Business UPI accounts to collect money. However, now I am planning to open a Gpay / PhonePe / Paytm Business account to receive payments (and most of my customers are opting to pay via Rupay Credit Card). Now I am concerned about the annual/monthly/transaction-based charges associated with such accounts and the MDR rates that these intermediaries charge for Card Payments.
Can someone please say which platform is good for small-scale businesses to receive money and the charges associated with it? If I agree to accept rupay card-based payments - what will be the MDR slabs/rates?
Not expecting more than 50 transactions (max) in a month and transaction value in the range of 500 - 2000 per transaction. Business type - Services / Consultation. The business is not registered and is more like a freelancing service.

MDR charges not applicable for less than or equal to 2k txns.

You can use paytm as it's more trusted than phonpe and gpay else hdfc smart vyapaar.

 

[shrewdoc]

I am doing a freelancing service/consultation. I have been using my personal Gpay account to receive payment. Usually, the payments are very small amounts (not exceeding Rs 2000) and are from a limited number of people. Hence I never opened a proper current account or had Business UPI accounts to collect money. However, now I am planning to open a Gpay / PhonePe / Paytm Business account to receive payments (and most of my customers are opting to pay via Rupay Credit Card). Now I am concerned about the annual/monthly/transaction-based charges associated with such accounts and the MDR rates that these intermediaries charge for Card Payments.
Can someone please say which platform is good for small-scale businesses to receive money and the charges associated with it? If I agree to accept rupay card-based payments - what will be the MDR slabs/rates?
Not expecting more than 50 transactions (max) in a month and transaction value in the range of 500 - 2000 per transaction. Business type - Services / Consultation. The business is not registered and is more like a freelancing service.

RBI defines small merchants as having an annual turnover of up to INR 20 Lakh.

So, you can accept these payments upto ₹2000 per transaction with 0 MDR charges. However, Merchant accounts on Gpay, Paytm, Phonepe etc have to pay for their services, you need to check those terms out.

 

[NAB]

For PayTM Merchant Account, Payments up to Rs 2000 , 0 MDR, and if it's more than Rs. 2000, then 1.99% + 18% GST

 

[Abhishek012]

For PayTM Merchant Account, Payments up to Rs 2000 , 0 MDR, and if it's more than Rs. 2000, then 1.99% + 18% GST

Bharatpe UPI merchant account charge only 1.25% MDR for RuPay CC link UPI payment acceptance if electronic categories.

other categories 1.50% and 1.75% MDR (depend on merchant categories).

Note - RuPay CC link UPI payment acceptance upto Rs 2000, 0 MDR.

 

[karankayastha]

Bharatpe UPI merchant account charge only 1.25% MDR for RuPay CC link UPI payment acceptance if electronic categories.

other categories 1.50% and 1.75% MDR (depend on merchant categories).

Note - RuPay CC link UPI payment acceptance upto Rs 2000, 0 MDR.

Has paytm added mdr charges for all rupay credit card upi transactions even if its below 2000rs casue our account got charged mdr for payment of 120 rs & even 10 rs transactions

 

[Abhishek012]

Has paytm added mdr charges for all rupay credit card upi transactions even if its below 2000rs casue our account got charged mdr for payment of 120 rs & even 10 rs transactions

You maybe a large merchant.

 

[karankayastha]

You maybe a large merchant.

But still large Marchant has to pay for all transactions there is no 2000 rs threshold? Also what is definition of large merchant?

 

[#aniket]

But still large Marchant has to pay for all transactions there is no 2000 rs threshold? Also what is definition of large merchant?

Large merchants are merchants which are not small merchants.😂

Annual turnover > 20 lakhs.😄

P.S: Yes only small merchants are exempted from MDR upto ₹2000 credit, whereas large merchants do incur MDR.

 

[karankayastha]

Large merchants are merchants which are not small merchants.😂

Annual turnover > 20 lakhs.😄

P.S: Yes only small merchants are exempted from MDR upto ₹2000 credit, whereas large merchants do incur MDR.

Ohh ok so this 20 lakh threshold is account wise or the app base like if i switch to google pay or phone pe there will be no charges right?

 

[Abhishek012]

Ohh ok so this 20 lakh threshold is account wise or the app base like if i switch to google pay or phone pe there will be no charges right?

Yes, Switch to google pay, phonepe, bharatpe etc many other fintech apps and banks offer merchant UPI QR codes.

 

[financewizard]

Large merchants are merchants which are not small merchants.😂

Annual turnover > 20 lakhs.😄

P.S: Yes only small merchants are exempted from MDR upto ₹2000 credit, whereas large merchants do incur MDR.

So if my individual transactions (the payments that I received) are less than 2000, and if my turnover is less than 20 Lakhs, there will be no MDR charges is it??

 

[Abhishek012]

So if my individual transactions (the payments that I received) are less than 2000, and if my turnover is less than 20 Lakhs, there will be no MDR charges is it??

Payment aggregator/acquirer banks have the right to discontinue your free MDR, if they find suspicious transactions like CC to bank rotation etc.