Standard Merchant UPI — ₹1,00,000
MDR Capped
Customer Pays
₹1,00,000
MDR (Capped)
₹300
GST on MDR
₹54
Total Deduction
₹354
Merchant Receives
₹99,646
Effective fee: 0.354% (with GST) · Without GST: ₹99,700 received (0.300% effective)
Why ₹300 Cap Applies at ₹1 Lakh
The UPI MDR cap of ₹300 per transaction applies to all standard merchant transactions above ₹75,000. The cap formula is:
Without cap: ₹1,00,000 × 0.4% = ₹400 (above cap)
Cap = ₹300
Therefore: MDR = ₹300 (capped)
GST on MDR = ₹300 × 18% = ₹54
Total Deduction = ₹354
Merchant Settlement = ₹1,00,000 − ₹354 = ₹99,646
Cap = ₹300
Therefore: MDR = ₹300 (capped)
GST on MDR = ₹300 × 18% = ₹54
Total Deduction = ₹354
Merchant Settlement = ₹1,00,000 − ₹354 = ₹99,646
MDR on ₹1 Lakh by Category
| Category | MDR Rate | MDR | GST | Settlement |
|---|---|---|---|---|
| Standard Merchant | 0.4% (capped at ₹300) | ₹300 | ₹54 | ₹99,646 |
| Essential Sector | ₹5 flat | ₹5 | ₹0.90 | ₹99,994.10 |
| Capital Market | 0.02% (max ₹300) | ₹20 | ₹3.60 | ₹99,976.40 |
| Zero MDR | Zero | ₹0 | ₹0 | ₹1,00,000 |