Standard Merchant UPI — ₹1,000
Customer Pays
₹1,000
MDR
₹0
Merchant Receives
₹1,000
Zero MDR applies. Net payout is exactly ₹1,000. Effective fee: 0.000%
How ₹1,000 UPI Payments Are Processed
Under the Zero-MDR mandate for low-value payments, merchant transactions of ₹1,000 made via regular bank-to-bank UPI do not attract any fee deductions. The full ₹1,000 is credited to the merchant's account on the settlement cycle.
Transaction Amount = ₹1,000
₹1,000 ≤ ₹2,000 (threshold) → Zero MDR applies
MDR = ₹0.00
GST on MDR = ₹0.00
Merchant Net Settlement = ₹1,000.00
₹1,000 ≤ ₹2,000 (threshold) → Zero MDR applies
MDR = ₹0.00
GST on MDR = ₹0.00
Merchant Net Settlement = ₹1,000.00
What About Soundbox or QR Rentals?
While the transaction fee (MDR) on ₹1,000 is ₹0, payment companies (such as Paytm, PhonePe, BharatPe) may charge a fixed monthly hardware subscription fee (typically ₹99 – ₹125/month) for audio voice-box devices. However, this is a hardware rental charge, not a per-transaction MDR deduction.