Standard Merchant UPI — ₹1,500
Customer Pays
₹1,500
MDR
₹0
Merchant Receives
₹1,500
Zero MDR applies — ₹1,500 is within the ₹2,000 limit. Effective fee: 0.000%
Calculation Details for ₹1,500
Every person-to-merchant (P2M) UPI transaction from a bank account of ₹1,500 qualifies for complete zero MDR. Payment gateways and acquiring banks do not deduct fees from this transaction.
Transaction Amount = ₹1,500
₹1,500 ≤ ₹2,000 (threshold) → Zero MDR applies
MDR = ₹0.00
GST on MDR = ₹0.00
Merchant Bank Settlement = ₹1,500.00
₹1,500 ≤ ₹2,000 (threshold) → Zero MDR applies
MDR = ₹0.00
GST on MDR = ₹0.00
Merchant Bank Settlement = ₹1,500.00
What If the Customer Pays With a Credit Card on UPI?
If a customer pays using a RuPay credit card linked to UPI, small merchants (turnover up to ₹20 Lakh) are still exempt from MDR for transactions up to ₹2,000. However, for larger enterprise merchants, acquirers may charge standard credit card interchange under specific bilateral merchant contracts.