MDR for Standard Business Merchants
Standard businesses — retail shops, restaurants, hotels, e-commerce stores, service providers — fall under the standard merchant UPI MDR framework:
- Transactions ≤ ₹2,000: Zero MDR
- Transactions > ₹2,000: 0.4% MDR (max ₹300)
Impact by Business Type
Retail Stores
Retail businesses handling a mix of small and large transactions benefit from the ₹2,000 zero-MDR threshold for many everyday purchases. Higher-value transactions (electronics, furniture) will incur 0.4% MDR.
Restaurants
Restaurant bills often exceed ₹2,000, particularly for groups. MDR of 0.4% applies on the total bill amount above the threshold. A ₹3,000 restaurant bill: MDR = ₹12.
E-Commerce
E-commerce merchants accepting UPI pay 0.4% MDR on most transactions (since most online orders exceed ₹2,000). The ₹300 cap is beneficial for high-value orders.
Monthly Cost Planning
For a business processing ₹10 lakh/month in UPI payments (average ₹2,500/transaction, 400 transactions): Estimated MDR = 400 × ₹10 = ₹4,000/month. With GST: ~₹4,720/month. Use the monthly MDR calculator for your exact numbers.