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Understand what your UPI payment actually costs, before you pay. Check consumer fees, shopkeeper MDR, and official government rules in seconds.
- Buyer surcharge
- ₹0
- Always free for buyers
- Under ₹2,000
- 0% MDR
- 96% of merchant scans
- High tickets
- ₹300 cap
- Statutory ceiling
Calculate any payment in seconds
Test a ticket size to see the consumer fee, seller acquiring deduction, and the gazette rule behind both numbers.
UPI Fee Instrument
Direct regulatory formulaDaily shopping up to ₹2,000 is completely fee-free for both buyer & seller!
What is actually free on UPI?
Personal transfers stay free. Everyday kirana scans up to ₹2,000 stay at 0% MDR. High-value tickets stop at a ₹300 cap.
You, the buyer
₹0 extra
UPI does not add a surcharge on your side. You pay the bill amount, then PIN.
The shop
May pay MDR
The shop's bank can take a fee from the shop, not from you. Under ₹2,000 that fee is ₹0.
High bills
₹300 max
From ₹75,000 upward the shop's UPI fee stops at ₹300, even on a high-value purchase.
Tap a band to try that bill size
See it in real life
Click any scenario to test the real-world payment cost for you and the seller.
The UPIfree Product Toolkit
Nine specialized payment utilities grouped by purpose. Choose what you want to accomplish.
Consumer Cost & Splitting
Know your exact fee before scanning, compare alternatives, or split group bills fairly.
UPI Charge Calculator
Instant consumer fee vs merchant MDR simulator with official government formula breakdown.
Payment Method Finder
Compare UPI, RuPay credit cards, debit cards, and net banking across fees, limits, and speed.
Multi-Payer Bill Splitter
Split shared dinner or trip expenses with instant scannable UPI QR codes generated on the fly.
Custom QR & Tabletop Posters
Generate private, custom payment codes and realistic countertop standees for your store or event.
Safety Inspection & Rules
Audit QR codes client-side for fraud traps and access verbatim regulatory gazettes.
Bill reader
Photograph a bill or UPI slip. Printed fields are read, then you get a copyable who-pays-what note.
UPI QR Code Analyzer
Inspect QR image strings client-side to verify registered merchant names, MCC codes, and safety flags.
Statutory Rules Directory
Searchable repository of active RBI, NPCI, and Ministry of Finance payment rules and formulas.
Merchant Economics & Education
Master payment acquiring costs, avoid common QR pitfalls, and decode financial jargon.
Merchant MDR Calculator
Model monthly shop turnover, evaluate the ₹300 statutory cap benefit, and estimate yearly fees.
Authoritative Payment Guides
In-depth editorial articles on UPI charge mechanics in 2026, MDR economics, and consumer rights.
Financial Glossary
Plain-English explanations for complex banking terms: MDR, VPA, interchange, PSP, and MCC.
After the 15 September gazette
What has changed in the last few days
The fee math is unchanged. These notes cover verified reporting up to 1 November 2026. NPCI confirmed that zero-MDR settlements remain fully active through Dhanteras and the Diwali festive week. NPCI will notify the revised implementation date after the Diwali festival period concludes. The Centre and NPCI submitted counter-affidavits to the Supreme Court. The submissions state that the merchant fee is an inter-bank infrastructure charge, not a tax. Consumer protection rules continue in full force. Consumers pay zero extra charges across all UPI transactions. Merchant surcharge prohibitions remain strictly enforced.
01 Nov 2026
LatestUPI records festive volume surge in October with zero MDR maintained across all transactions
NPCI transaction logs for October 2026 showed record digital payment volumes driven by Dussehra and pre-Diwali festive shopping. Daily transaction run-rates stayed above 800 million. All transactions operated under the zero-MDR framework following the post-Diwali deferral. Consumers and merchants experienced zero additional payment charges across retail checkouts.
NPCI / Press Information Bureau / Economic Times29 Oct 2026
LatestNPCI and acquiring banks confirm zero fee settlements through Dhanteras and Diwali shopping
NPCI and major acquiring banks issued operational guidelines confirming that merchant fee engines remain offline through Dhanteras (6 November) and Diwali (8 November). Commercial banks confirmed that settlement accounts will receive full value without deductions. NPCI stated that the formal circular with the revised post-Diwali effective date will be published after the festival period.
Livemint / Business Standard / PTI27 Oct 2026
LatestCentre and NPCI file Supreme Court counter-affidavit; clarify MDR is service infrastructure cost, not tax
The Union Government and NPCI filed detailed counter-affidavits in the Supreme Court within the four-week timeline set on 28 September. The responses addressed bench queries by clarifying that the 0.40% MDR on transactions above ₹2,000 is an inter-bank operational fee rather than an executive tax. The affidavit emphasised that consumer transactions remain 100% free and that over 96% of all merchant transactions remain exempt.
LiveLaw / The Hindu / Supreme Court of India22 Oct 2026
LatestCAIT reports robust festive retail adoption on UPI; zero merchant restrictions recorded
The Confederation of All India Traders (CAIT) reported strong retail transaction volume across trade hubs in the run-up to Diwali. Trade associations verified that member merchants across consumer electronics, jewellery, and apparel processed high-value UPI payments without friction or checkout surcharges, following the withdrawal of earlier protest calls.
Financial Express / CAIT / ANI19 Oct 2026
LatestMinistry of Finance and IBA joint monitoring cell confirms compliance against POS surcharges
The joint monitoring cell set up by the Department of Financial Services and the Indian Banks' Association (IBA) issued its first review report. The team confirmed that acquiring banks and aggregators have enforced zero-surcharge mandates across retail merchant terminals. Stray merchant inquiries regarding convenience fees were addressed, preserving zero cost for consumers.
Economic Times / PIB16 Oct 2026
LatestCareEdge Global Ratings ranks India's UPI and DPI among top 10 global structural reforms
CareEdge Global Ratings evaluated 43 reform programs across 38 countries and ranked India's Digital Public Infrastructure (DPI)—powered by UPI and Aadhaar—among the world's top 10 most effective structural reforms. The report highlighted that UPI processes over 13 billion transactions monthly, lowers operational friction, and enables over 85% of MSME transactions to occur digitally, formalising enterprise commerce while preserving zero transaction costs for retail users.
ANI / NewsBytes / CareEdge Global Ratings16 Oct 2026
Hotel and supermarket associations drop proposed UPI curbs following post-Diwali deferral
Trade and hospitality bodies, including the Kerala Hotel and Restaurant Association (KHRA) and Super Market Welfare Association Kerala (SWAK), confirmed normal acceptance of all digital payments across dining and retail. The associations formally dropped proposed restrictions on UPI transactions above ₹2,000 after NPCI deferred the 0.40% MDR framework past Diwali, ensuring customer checkout remains free of surcharges.
Livemint / Kerala Kaumudi / ANI16 Oct 2026
NPCI Operating Circular 237 advisory confirms merchant fee engines must remain disabled in production
Compliance advisories for NPCI Operating Circular No. 237/2026-27 reiterated that acquiring banks and payment aggregators must keep MDR deduction algorithms inactive on live merchant accounts during the festive shopping period. Technical configurations may be tested in sandbox environments, but zero-charge settlements remain mandatory on all live UPI transactions until the post-Diwali effective date is notified.
SCC Online / Taxmann / NPCI15 Oct 2026
15 October arrives with UPI MDR on hold; transactions continue at 0% across festive shopping
The original 15 October implementation date arrived with the 0.40% merchant fee held in abeyance across India. Acquiring banks and payment aggregators maintained standard zero-MDR settlement processing for the festive shopping surge, following NPCI's post-Diwali deferral directive. For consumers and merchants, all UPI transactions proceed under existing zero-fee terms while payment networks await the post-festive notification.
The Hindu / Financial Express / PTI14 Oct 2026
Acquiring banks and payment aggregators pause fee deduction engines; configurations held on standby
Following NPCI's steering committee circular, commercial banks and major payment aggregators confirmed the suspension of scheduled 15 October merchant fee deductions. Technical integrations, category code mapping, and settlement engines remain configured in staging, ready to activate once NPCI issues the specific post-Diwali date. Consumer UPI transactions remain completely free.
Economic Times / ET BFSI / Business Standard13 Oct 2026
NPCI officially defers UPI MDR rollout until immediately post-Diwali; revised date to follow
The UPI and Services Steering Committee of NPCI officially announced that the planned implementation of the 0.40% MDR on specified P2M transactions above ₹2,000 has been deferred from 15 October to immediately post-Diwali. NPCI stated the decision ensures uninterrupted festive commerce for retail merchants and shoppers. A revised implementation date will be notified separately. All consumer UPI transfers and tickets up to ₹2,000 stay 100% free.
NPCI Press Release / NewsOnAir / The Hindu13 Oct 2026
CAIT and retail associations welcome festive deferral; all planned merchant protests withdrawn
The Confederation of All India Traders (CAIT), AICPDF, and regional merchant federations welcomed the post-Diwali deferral as practical relief for small retailers and MSMEs during the festive shopping season. Trade bodies formally withdrew all planned protest calls and boycott threats. Associations reiterated requests for continuing discussions on long-term MDR caps for thin-margin sectors.
Livemint / CAIT / ANI / NDTV Profit13 Oct 2026
Fintech shares rebound sharply as NPCI confirms MDR deferred to post-Diwali rather than scrapped
Shares of listed payment and fintech companies, including Paytm (One97 Communications) and MobiKwik, rebounded intraday following NPCI's official circular. Market analysts noted that postponing the rollout to post-Diwali rather than shelving the fee framework provides clarity that commercial monetization for the digital payments ecosystem remains on track, while avoiding near-term festive volume disruptions.
Business Standard / CNBC-TV18 / Reuters11 Oct 2026
Finance Ministry and NPCI conduct high-level trade reviews; consensus builds to safeguard festive retail
Senior officials from the Department of Financial Services (DFS), NPCI, and merchant representatives held consultative discussions on operational readiness ahead of the peak Navratri-Dussehra-Diwali shopping window. Trade representations stressed avoiding new friction or merchant checkout disputes during high-turnover weeks, establishing consensus to realign the switchover date post-festivals.
Financial Express / Economic Times08 Oct 2026
NPCI weighs deferring the UPI MDR rollout from 15 October to 1 January 2027
Multiple reports said NPCI and the government are considering pushing the 0.40% UPI MDR start from 15 October to 1 January 2027 after pushback from merchant bodies, fintechs, and payment aggregators over festive-season disruption and operational readiness. A final decision was still pending, with an announcement reported as expected within days. Nothing changes for consumers either way; the fee only ever applies to merchants on P2M payments above ₹2,000.
Times of India / Business Today / BusinessWorld08 Oct 2026
Fintech stocks swing on MDR deferral reports; Paytm, MobiKwik, Pine Labs move sharply
Shares of listed payment firms including Paytm, MobiKwik, and Pine Labs moved sharply as reports of a possible MDR deferral to January 2027 rippled through the market, since a delay postpones a potential new revenue stream for the ecosystem. The reports concern how and when the merchant fee is shared across the chain; consumer UPI remains free regardless.
Economic Times / Inc42 / Free Press Journal07 Oct 2026
Traders press for rollback; planned "No UPI Day" protest called off after Finance Minister meeting
Retail trader associations renewed demands to withdraw or defer the 0.40% MDR, warning some shops could decline UPI for larger purchases or steer buyers to cash. An earlier plan to observe 2 October as a "No UPI Day" was called off after trade bodies met Finance Minister Nirmala Sitharaman. The rules still bar merchants from passing the fee to customers.
NDTV / The Week / MSN07 Oct 2026
GST Council reviews the GST rate on UPI MDR amid deferral requests
The GST Council took up a review of the GST rate applicable on UPI MDR deductions while trade associations sought to defer the charge until after the festive season or early next year. NPCI had not announced a final decision on timing. The review concerns tax on the merchant-side fee and does not add any charge for consumers.
BusinessWorld05 Oct 2026
LocalCircles survey: 83% of merchants unwilling to absorb the 0.40% MDR; many may pass it on
A LocalCircles survey found that 83% of polled merchants are unwilling to absorb the 0.40% MDR on P2M payments above ₹2,000, with many signalling they would try to recover it from buyers. Under RBI and IBA rules the fee is charged to merchants and cannot be passed to consumers, who continue to pay ₹0 extra, while P2P and sub-₹2,000 shop payments stay free.
India Today05 Oct 2026
Survey finds just 1 in 4 Hyderabadis willing to pay via UPI if the MDR is passed on
A consumer survey reported that only about one in four Hyderabad respondents would keep paying via UPI if the merchant discount rate were passed on to them. In practice that scenario is barred: RBI and IBA rules prohibit shops and apps from charging the 0.40% MDR to buyers, so consumers still pay nothing extra on UPI.
The Times of India05 Oct 2026
UPI value and volume dip in September: 24.07 billion transactions, average ticket ₹1,012, ahead of 15 October MDR
NPCI data showed UPI processed 24.07 billion transactions in September with an average ticket size of ₹1,012, a dip in both value and volume ahead of the 15 October MDR start. The 0.40% fee applies only to merchant payments above ₹2,000 and is borne by merchants, leaving consumer costs at zero for P2P and sub-₹2,000 payments.
MediaNama05 Oct 2026
Former RBI Governor C. Rangarajan says UPI MDR should not attract any GST
Former RBI Governor C. Rangarajan argued that the UPI merchant discount rate should not attract any GST, adding to the ongoing debate over whether the 0.40% charge is taxable. The MDR itself remains a merchant-side cost, with consumers paying ₹0 extra on P2P transfers and sub-₹2,000 shop payments.
The Hindu BusinessLine05 Oct 2026
ET explainer: how the new 0.40% MDR will flow across banks, aggregators and fintechs
An Economic Times explainer broke down how the new 0.40% MDR fee pool will be split across sponsor banks, payment aggregators and fintechs once the framework takes effect on 15 October. The mechanics concern only how the merchant fee is shared along the payments chain; the consumer still pays zero.
ET BFSI / Economic Times05 Oct 2026
B2B platform flags MDR could eat up to 94% of thin margins; MSME cash-flow and digital-credit concerns raised
A B2B payments platform warned that on high-ticket, low-margin trade the 0.40% MDR could absorb as much as 94% of thin margins, raising MSME cash-flow and digital-credit concerns. The fee lands on merchants rather than buyers, so consumer-facing UPI remains free for P2P and sub-₹2,000 payments.
CNBC-TV18 / Economic Times04 Oct 2026
LocalCircles survey projects ~10% drop in UPI value, 4% in volume after 15 October MDR start
A LocalCircles consumer survey, cited by its CEO Sachin Taparia, estimated UPI could see roughly a 10% fall in monthly transaction value and a 4% dip in monthly volume if the 0.40% MDR on P2M payments above ₹2,000 takes effect on 15 October. The fee is still charged to merchants, not buyers, and P2P plus sub-₹2,000 shop payments stay free.
Business Standard / The Statesman01 Oct 2026
Payment aggregators press sponsor banks for a bigger share of the MDR fee pool
Ahead of the 15 October switchover, leading payment aggregators opened negotiations with their partner sponsor banks to secure a larger cut of the MDR fee pool on high-value UPI transactions. The talks concern how the 0.40% merchant fee is split across the payments chain and do not change what consumers pay, which remains zero.
Lapaas Voice28 Sep 2026
Supreme Court asks Centre to justify MDR, questions whether it is tax, fee or "expropriation"
While refusing the interim stay, the Supreme Court bench pressed the government on the legal character of the charge, asking whether it is a tax, a fee, or an "expropriation", and sought an affidavit from the Centre explaining the basis and nature of the MDR. The 15 October timeline stays intact unless the Court directs otherwise.
The Hindu / Times Now01 Oct 2026
Banks and aggregators enter final two-week testing window ahead of 15 October switchover
Acquiring banks, payment aggregators, and enterprise accounting platforms commenced final end-to-end technical dry runs ahead of the October 15 MDR rollout. Systems are validating automated settlement deductions, verifying the strict ₹0 consumer extra-fee rule, and confirming concessional flat ₹5 and 0.02% caps across category codes.
Livemint / Economic Times30 Sep 2026
NPCI confirms zero hardware or QR replacement required for merchants
NPCI and acquiring banks issued operational guidance clarifying that merchants will not need new tabletop QR codes, soundboxes, or POS terminals. The 0.40% MDR fee calculations and small-merchant exemptions (under ₹1 lakh monthly turnover) are executed entirely in bank settlement software.
Business Standard / Financial Express30 Sep 2026
UPI daily transactions reach 802 million average in September, up 1% despite fee debate
NPCI transaction logs revealed UPI processed an average of 802 million transactions per day in September, up 1% from August's 792 million daily run-rate. Transaction momentum remained robust, with over 96% of all daily retail transactions falling within the 100% zero-MDR threshold.
Business Standard / PIB29 Sep 2026
Petrol dealer bodies warn of UPI restrictions above ₹2,000 as Ministry reviews plea
The All India Petroleum Dealers Association (AIPDA) and regional fuel dealer federations across several states warned they may decline UPI payments above ₹2,000 starting October 15 unless exempted from the ₹5 MDR band. The Department of Financial Services and Petroleum Ministry are reviewing dealer representations.
MoneyLife / NDTV Profit / ANI28 Sep 2026
Supreme Court refuses interim stay on 15 October UPI MDR rollout; issues 4-week notices
A three-judge Supreme Court bench headed by Chief Justice Surya Kant declined to grant an interim stay on the government's 15 October UPI MDR notification. The Court issued formal notices to the Centre, RBI, and NPCI seeking replies within four weeks, while the government reiterated that 96% of transactions remain completely free.
The Hindu / Economic Times / LiveLaw24 Sep 2026
IBA rolls out nationwide multilingual campaign against consumer surcharge rumours
The Indian Banks' Association (IBA) initiated a nationwide multilingual public awareness drive across digital, print, and regional television media to reassure consumers that UPI remains completely free for buyers. The campaign urges customers to decline any illegal merchant surcharge and report non-compliant POS terminals.
Livemint / Outlook Business / ANI24 Sep 2026
Centre and IBA set up joint monitoring mechanism to stop POS MDR pass-through
The Ministry of Finance and IBA agreed on a joint oversight mechanism requiring acquiring banks and payment aggregators to audit merchant settlement records and billing slips. Banks are mandated to penalise or delist merchants attempting to shift the 0.40% MDR onto customer bills.
Economic Times / ANI23 Sep 2026
Trade chambers petition Finance Ministry for GST Council waiver on MDR tax
Retail merchant associations and trade federations submitted representations urging the GST Council to waive the 18% GST currently applicable on merchant MDR deductions. Retailers highlighted that exempting MDR from service tax will prevent escalating administrative overheads for retail businesses.
Economic Times / Rediff / NewsOnAir22 Sep 2026
NPCI reiterates 96% transactions unaffected following localized merchant protests
After select regional market associations observed symbolic QR blackout demonstrations, NPCI and Ministry officials clarified that over 96% of all retail transactions remain entirely exempt from MDR under the ₹2,000 threshold and small-merchant P2PM annual turnover guidelines.
The Hindu / ANI21 Sep 2026
Fuel dealers seek waiver on flat ₹5 MDR citing thin margins
Petrol pump associations, including the All India Petroleum Dealers Association (AIPDA), submitted representations seeking exemption from the flat ₹5 MDR on fuel transactions exceeding ₹2,000. Dealers cited fixed commission margins per litre and requested parity with card MDR exemptions.
MoneyLife / India Today / ANI21 Sep 2026
Supreme Court petition against MDR remains unlisted; October 15 timeline intact
The Public Interest Litigation (PIL) filed by advocate Anjan Datta challenging the Ministry of Finance notifications has not been listed for urgent hearing or stay. The Ministry of Finance and NPCI confirmed the planned 15 October rollout remains on schedule.
LiveLaw / Financial Express20 Sep 2026
Mutual fund SIPs via UPI AutoPay confirmed free; lump sums set at 0.02%
Operational guidelines clarified that recurring mutual fund investments via UPI AutoPay mandates carry 0% MDR. One-time lump sum stockbroking and investment payments above ₹2,000 carry a concessional 0.02% merchant fee, capped at ₹300, without any deduction from investor allocations.
Mint / Economic Times20 Sep 2026
NPCI directs banks to test systems and enforce zero-surcharge compliance
NPCI circular issued to acquiring banks and payment aggregators mandates technical readiness for merchant settlement engines before October 15. The circular reiterates zero tolerance for merchant surcharges, requiring acquirers to audit merchant POS and settlement terminals.
Economic Times / Business Standard19 Sep 2026
Payment apps strictly barred from levying user platform fees
NPCI operating directives and Ministry clarifications confirm third-party application providers (TPAPs like PhonePe, Google Pay, and Paytm) cannot charge consumers platform convenience fees or processing surcharges. The consumer experience remains strictly zero-cost across all apps.
The Hindu / PIB19 Sep 2026
Trade bodies demand transparent settlement without backdoor rentals
The Confederation of All India Traders (CAIT) and retail merchant associations submitted representations urging banks not to impose disguised standee rentals, soundbox markups, or gateway service charges beyond the notified 0.40% rate, requesting transparent digital deductions on settlement slips.
Economic Times18 Sep 2026
State utilities, electricity boards & civic taxes confirmed on flat ₹5 band
State electricity distribution utilities, municipal corporations, water authorities, and educational institutions received operational circular confirmations that digital bill payments above ₹2,000 strictly attract the flat ₹5 cap rather than percentage MDR, keeping public utility bills protected.
Financial Express17 Sep 2026
Government will watch MDR every day from 15 October
From 15 October, the Centre plans daily checks so banks and payment aggregators do not pass the new merchant fee on to buyers. P2P stays free. Shop payments up to ₹2,000 stay at 0% MDR.
Mint17 Sep 2026
No GST add-on for buyers, officials say
Government sources said the October rollout will be monitored so shops do not load MDR onto the bill, and they dismissed rumours that GST would be added on top for the person paying.
India Today16 Sep 2026
NPCI FAQ: ₹3,000 costs the shop ₹12; ₹1 lakh still caps at ₹300
NPCI's 15 September FAQ, covered on 16 September, repeats the worked examples: ₹2,000 = ₹0, ₹3,000 = ₹12, ₹50,000 = ₹200, ₹75,000 and above = ₹300. The buyer is not billed that fee.
SCC Times16 Sep 2026
Officials say there is no rollback of the 0.40% shop MDR
A government official said the 0.40% merchant fee on specified shop payments above ₹2,000 will still start on 15 October. Essential sectors stay on the flat ₹5 band.
India Today16 Sep 2026
Street QR shops under ₹1 lakh a month stay exempt
Small merchants in the P2PM class (those receiving up to ₹1 lakh per month on a UPI QR into their personal account) keep zero MDR on every ticket. GST registration is not required for that class, and existing QR standees do not need replacing.
Mint / Financial Express16 Sep 2026
A Supreme Court petition has been filed; no stay reported
A writ petition asks the Court to quash the September gazette on commercial UPI fees above ₹2,000. As of 16 September, news reports do not record a stay. The 15 October start still stands unless a court says otherwise.
LiveLaw
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Understand the economics
Taxing the digital rail: how UPI transaction fees impact India's strained economy and households
India's real economy faces high living costs, subdued rural consumption, and compressed retail margins. An economic analysis of how a 0.40% merchant MDR behaves like an indirect tax and transmits through retail supply chains.
If the shop pays MDR, do you still pay?
A UPI checkout extra is not the same as a higher sticker. When there is ₹0 MDR, there is nothing to bake in.
UPI Charges in India: The Complete 2026 Breakdown
Peer-to-peer transfers, merchant MDR tiers, and why everyday payments remain free.
How Merchant MDR Works: Who Pays and Where It Goes
Acquiring banks, interchange, switch costs, and how small kiranas are protected.
UPI Safety & Fraud Prevention: Spotting QR Traps
Reverse collect scams, why a PIN always deducts money, and how to inspect QRs on-device.
Frequently asked questions
Straight answers on UPI costs, MDR, and consumer safety.
Pay smarter. Know the cost.
Verify any ticket size, or print a tabletop QR, without sending banking data off your device.