Merchant & QR
What is MDR?
Merchant Discount Rate · मर्चेंट डिस्काउंट रेट
The slice a network takes from the merchant. From 15 Oct 2026 some UPI P2M above ₹2,000 take 0.4% MDR; it is not a government tax.
MDR is the fee slice taken from a merchant on a card or digital sale. Card networks typically charge 1–3%. From 15 October 2026, specified person-to-merchant UPI payments above ₹2,000 take a 0.4% MDR capped at ₹300 (₹5 flat for fuel, rail, telecom, insurance and agri inputs). The Finance Ministry said this is not a tax and is not collected by the government or NPCI.
P2P stays free at any amount. P2M of ₹2,000 or less stays free. Small QR merchants collecting up to ₹1 lakh a month stay in the zero-MDR net — about 96% of P2M volume, per the ministry. RuPay credit card on UPI above ₹2,000 remains a separate interchange product. GST at 18% may apply on the MDR; registered merchants can usually claim ITC.
MDR: quick answers
So accepting UPI still costs me nothing?
Often yes: P2P, sub-₹2,000 merchant scans, and small QR shops under ₹1 lakh/month. Larger P2M tickets may take 0.4% from 15 October 2026. Customers cannot be surcharged.
How much will my shop pay?
Use the UPI MDR calculator for a monthly estimate, then compare with the gateway savings calculator.
Use it right now