{"id":5582,"date":"2026-10-07T07:16:09","date_gmt":"2026-10-07T07:16:09","guid":{"rendered":"https:\/\/jumpp.finance\/blog\/?p=5582"},"modified":"2026-10-07T12:26:15","modified_gmt":"2026-10-07T12:26:15","slug":"what-is-mdr","status":"publish","type":"post","link":"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/","title":{"rendered":"What Is MDR? Meaning, Charges and Latest UPI Rules"},"content":{"rendered":"<div class='main-article-wrapper'>\n<p class=\"wp-block-paragraph\"><strong>\u201cUPI payments above \u20b92,000 will now cost extra.\u201d<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That\u2019s the worry doing the rounds after the latest MDR update. But before you start splitting your UPI payments, here\u2019s the important part: <strong>customers are not being charged MDR.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The new rules apply to certain merchant payments, while customers continue to pay only the actual transaction amount.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, what exactly has changed, who pays the MDR, and when does it apply?&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s break it down.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_MDR_in_a_Payment_Gateway\"><\/span>What Is MDR in a Payment Gateway?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">MDR stands for <strong>Merchant Discount Rate<\/strong>. It is a fee that businesses or merchants pay for accepting and processing certain digital payments made by customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, when a customer pays a merchant digitally, banks, payment networks and other payment providers may be involved in processing the transaction. Where MDR applies, the merchant bears the applicable processing charge.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_MDR_Work\"><\/span>How Does MDR Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A digital payment passes through multiple participants before it is completed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here is how MDR works:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Customer makes a payment:<\/strong> The customer pays through UPI, debit card, credit card or another supported method.<\/li>\n\n\n\n<li><strong>Transaction gets processed:<\/strong> The payment moves through the relevant banks, payment network and payment service providers.<\/li>\n\n\n\n<li><strong>Payment is settled:<\/strong> The transaction amount is processed for settlement to the merchant.<\/li>\n\n\n\n<li><strong>MDR is applied:<\/strong> Where applicable, the processing charge is borne by the merchant.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">The MDR collected can be distributed among different participants involved in processing the transaction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Issuing Bank:<\/strong> The bank that issued the customer\u2019s card or holds the paying account.<\/li>\n\n\n\n<li><strong>Acquiring Bank or Payment Gateway:<\/strong> Helps the merchant accept and process digital payments.<\/li>\n\n\n\n<li><strong>Payment Network:<\/strong> Facilitates communication and transaction processing between the participating entities.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The exact structure can differ depending on the payment method.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Do_Customers_Have_to_Pay_Extra_MDR_Charges_on_UPI\"><\/span>Do Customers Have to Pay Extra MDR Charges on UPI?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>No. Customers do not have to pay MDR on UPI transactions.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Where applicable, the MDR is borne by the merchant. So, if your bill is \u20b93,000, you continue to pay \u20b93,000, not \u20b93,000 plus MDR.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">More than 95% of UPI merchant transactions are \u20b92,000 or below and remain outside the new MDR charge.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Know <a href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/upi-transaction-limit\/\" target=\"_blank\" rel=\"noreferrer noopener\">UPI transaction limits<\/a> in 2026!<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Are_the_Latest_UPI_MDR_Charges_in_2026\"><\/span>What Are the Latest UPI MDR Charges in 2026?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Under the updated NPCI framework effective <strong>15 October 2026<\/strong>, UPI MDR follows a tiered structure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here is a quick look at the key <strong>UPI MDR charges, thresholds and caps<\/strong> under the updated framework:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>UPI Transaction \/ Category<\/strong><\/td><td><strong>Transaction Limit<\/strong><\/td><td><strong>MDR Rate<\/strong><\/td><td><strong>Maximum MDR \/ Cap<\/strong><\/td><\/tr><tr><td><strong>Person-to-Person (P2P)<\/strong><\/td><td>Any permitted amount<\/td><td><strong>0%<\/strong><\/td><td>No MDR<\/td><\/tr><tr><td><strong>Standard Merchant (P2M)<\/strong><\/td><td>Up to \u20b92,000<\/td><td><strong>0%<\/strong><\/td><td>No MDR<\/td><\/tr><tr><td><strong>Standard Merchant (P2M)<\/strong><\/td><td>Above \u20b92,000<\/td><td><strong>0.4%<\/strong><\/td><td>Maximum \u20b9300 for transactions of \u20b975,000 and above<\/td><\/tr><tr><td><strong>Small Merchants (P2PM)<\/strong><\/td><td>Up to \u20b91 lakh in monthly UPI collections<\/td><td><strong>0%<\/strong><\/td><td>No MDR<\/td><\/tr><tr><td><strong>Railways, Telecom, Insurance, Fuel &amp; specified categories<\/strong><\/td><td>Above \u20b92,000<\/td><td><strong>Flat \u20b95<\/strong><\/td><td>\u20b95 per transaction<\/td><\/tr><tr><td><strong>Capital Markets \u2013 Mutual Funds, Securities, Stockbrokers &amp; Dealers<\/strong><\/td><td>Eligible UPI transactions<\/td><td><strong>0.02% of transaction value<\/strong><\/td><td><strong>Maximum \u20b9300 per transaction<\/strong><\/td><\/tr><tr><td><strong>UPI AutoPay \/ Mandates<\/strong><\/td><td>Eligible recurring payments<\/td><td><strong>0%<\/strong><\/td><td>No MDR<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Note:<\/strong> The Capital Market MDR applies to UPI payments towards Mutual Funds, Securities, Stockbrokers and Dealers. The MDR is <strong>0.02% of the transaction value, capped at \u20b9300 per transaction<\/strong>.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>P2P (Person-to-Person):<\/strong> Private transfers sent between friends, family, or your own personal bank accounts.&nbsp;<\/li>\n\n\n\n<li><strong>P2M (Person-to-Merchant):<\/strong> Commercial payments made to registered businesses, retail shops, or online e-commerce stores.&nbsp;<\/li>\n\n\n\n<li><strong>P2PM (Small Merchant):<\/strong> Payments made to small-scale street vendors or local stalls using basic QR codes.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Standard P2M MDR: Quick Examples<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Transaction Amount<\/strong><\/td><td><strong>MDR<\/strong><\/td><td><strong>Merchant Pays<\/strong><\/td><\/tr><tr><td>\u20b92,000<\/td><td>0%<\/td><td>\u20b90<\/td><\/tr><tr><td>\u20b93,000<\/td><td>0.4%<\/td><td>\u20b912<\/td><\/tr><tr><td>\u20b950,000<\/td><td>0.4%<\/td><td>\u20b9200<\/td><\/tr><tr><td>\u20b975,000 and above<\/td><td>Capped<\/td><td>Maximum \u20b9300<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>For customers, the MDR remains \u20b90.<\/strong> These rates and caps apply on the merchant side where applicable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_are_MDR_Charges_Calculated\"><\/span>How are MDR Charges Calculated?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">MDR may be calculated as a percentage of the transaction value. Depending on the payment category, a flat fee or maximum cap may also apply.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose a \u20b95,000 merchant transaction attracts an MDR of 0.4%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>MDR = \u20b95,000 \u00d7 0.4% = \u20b920<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The applicable MDR would be \u20b920.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, there is no single MDR rate for every digital payment. The applicable charge can depend on the payment method, transaction amount, merchant category and prevailing rules.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Example of MDR on a High-Value UPI Payment<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose an eligible standard P2M transaction is <strong>\u20b91,00,000<\/strong>. At 0.4%, the MDR would normally be \u20b9400. However, since the MDR is capped at <strong>\u20b9300 for transactions of \u20b975,000 and above<\/strong>, the merchant pays \u20b9300 as MDR.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The customer still pays only \u20b91,00,000.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_Merchants_Pass_UPI_MDR_to_Customers\"><\/span>Can Merchants Pass UPI MDR to Customers?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Under the referenced framework, merchants cannot add the applicable UPI MDR to the customer\u2019s bill as a separate charge.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if the bill amount is \u20b92,500, the customer pays \u20b92,500. An applicable MDR is handled separately on the merchant side.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full app-download-banner\"><a href=\"https:\/\/jumpp.finance\/pay\" target=\"_blank\" rel=\" noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"720\" src=\"https:\/\/jumpp.finance\/blog\/wp-content\/uploads\/2026\/07\/Send-and-receive-money-instantly-using-UPI-with-mobile-app-and-QR-code-payments-scaled.png\" alt=\"Send and receive money instantly using UPI with mobile app and QR code payments\" class=\"wp-image-4778\" srcset=\"https:\/\/jumpp.finance\/blog\/wp-content\/uploads\/2026\/07\/Send-and-receive-money-instantly-using-UPI-with-mobile-app-and-QR-code-payments-scaled.png 2560w, https:\/\/jumpp.finance\/blog\/wp-content\/uploads\/2026\/07\/Send-and-receive-money-instantly-using-UPI-with-mobile-app-and-QR-code-payments-300x84.png 300w, https:\/\/jumpp.finance\/blog\/wp-content\/uploads\/2026\/07\/Send-and-receive-money-instantly-using-UPI-with-mobile-app-and-QR-code-payments-1024x288.png 1024w, https:\/\/jumpp.finance\/blog\/wp-content\/uploads\/2026\/07\/Send-and-receive-money-instantly-using-UPI-with-mobile-app-and-QR-code-payments-768x216.png 768w, https:\/\/jumpp.finance\/blog\/wp-content\/uploads\/2026\/07\/Send-and-receive-money-instantly-using-UPI-with-mobile-app-and-QR-code-payments-1536x432.png 1536w, https:\/\/jumpp.finance\/blog\/wp-content\/uploads\/2026\/07\/Send-and-receive-money-instantly-using-UPI-with-mobile-app-and-QR-code-payments-2048x576.png 2048w, https:\/\/jumpp.finance\/blog\/wp-content\/uploads\/2026\/07\/Send-and-receive-money-instantly-using-UPI-with-mobile-app-and-QR-code-payments-520x146.png 520w\" sizes=\"auto, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 543px, 580px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"UPI_vs_Debit_Card_vs_Credit_Card_MDR\"><\/span>UPI vs Debit Card vs Credit Card MDR<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here is a simple comparison of how MDR differs across common payment methods:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Payment Method<\/strong><\/td><td><strong>Applicable MDR<\/strong><\/td><td><strong>Who Bears It?<\/strong><\/td><\/tr><tr><td>UPI P2P<\/td><td>Zero<\/td><td>No MDR<\/td><\/tr><tr><td>UPI P2M up to \u20b92,000<\/td><td>Zero<\/td><td>No MDR<\/td><\/tr><tr><td>Standard UPI P2M above \u20b92,000<\/td><td>0.4%, subject to applicable cap<\/td><td>Merchant<\/td><\/tr><tr><td>Debit Card<\/td><td>Subject to applicable RBI limits<\/td><td>Merchant<\/td><\/tr><tr><td>Credit Card<\/td><td>Commonly around 1.5%\u20133%, depending on arrangement<\/td><td>Merchant<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is why MDR should not be understood as one fixed charge across all digital payments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Watch_Out_for_These_Merchant_Workarounds\"><\/span>Watch Out for These Merchant Workarounds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While customers do not have to pay MDR, you may come across some situations while making UPI payments:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Splitting the bill:<\/strong> A merchant may ask you to split a payment above \u20b92,000 into smaller transactions to avoid the 0.4% MDR. For example, a \u20b93,000 bill may be split into two \u20b91,500 payments.<\/li>\n\n\n\n<li><strong>RuPay Credit Card payments:<\/strong> The 0.4% MDR applies to standard bank-account UPI payments. RuPay Credit Cards linked to UPI follow separate card-related rules, so a merchant may ask you to switch to a bank-account UPI payment.<\/li>\n\n\n\n<li><strong>Extra UPI charges:<\/strong> A UPI app does not automatically add an extra charge to your bill for high-value payments. The customer pays the actual bill amount.<\/li>\n\n\n\n<li><strong>Changing the payment mode:<\/strong> A merchant may choose which payment methods to accept, but MDR should not be added separately to your UPI bill as an extra charge.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">MDR is mainly a processing cost for merchants accepting certain digital payments. For customers, standard UPI payments continue without an additional MDR charge. Knowing the applicable rates, limits, and payment categories can help you understand what happens behind every digital payment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1791356733041\"><strong class=\"schema-faq-question\"><strong>What does MDR mean in banking?<\/strong><\/strong> <p class=\"schema-faq-answer\">MDR in banking refers to the merchant-side processing cost associated with eligible digital payments made through banks and payment networks.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1791356734031\"><strong class=\"schema-faq-question\"><strong>What are MDR charges on UPI?<\/strong><\/strong> <p class=\"schema-faq-answer\">Under the updated 2026 framework, standard P2M UPI transactions above \u20b92,000 attract 0.4% MDR, subject to the applicable cap. Different rates apply to specified essential services and capital-market transactions.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1791356734749\"><strong class=\"schema-faq-question\"><strong>Is MDR a Tax?<\/strong><\/strong> <p class=\"schema-faq-answer\">No. <strong>MDR is not a tax.<\/strong> It is a payment-processing charge associated with eligible merchant transactions.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1791356735315\"><strong class=\"schema-faq-question\"><strong>Is MDR the same as GST?<\/strong><\/strong> <p class=\"schema-faq-answer\">No. MDR is a payment-processing charge, while GST is a tax. Applicable GST may be charged on the MDR or payment-processing service.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1791356736091\"><strong class=\"schema-faq-question\"><strong>Who Pays MDR Charges?<\/strong><\/strong> <p class=\"schema-faq-answer\">The merchant bears the applicable MDR charges, rather than the customer. For UPI, the updated framework also keeps MDR as a merchant-side charge. Customers continue to pay only the transaction amount.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1791356737073\"><strong class=\"schema-faq-question\"><strong>Is there a monthly limit on free UPI transactions?<\/strong><\/strong> <p class=\"schema-faq-answer\">There is no MDR-based monthly quota for individual users under the referenced framework. Standard transaction limits set by banks or UPI for security and risk management may still apply.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1791356738133\"><strong class=\"schema-faq-question\"><strong>What are MDR charges on debit cards?<\/strong><\/strong> <p class=\"schema-faq-answer\">For small merchants with turnover up to <strong>\u20b920 lakh<\/strong>, debit-card MDR is capped at <strong>0.40%<\/strong>, with a maximum of <strong>\u20b9200 per transaction<\/strong>. For other merchants, it is capped at <strong>0.90%<\/strong>, with a maximum of <strong>\u20b91,000 per transaction<\/strong>. The applicable limit may also vary based on the payment acceptance infrastructure used.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1791356828441\"><strong class=\"schema-faq-question\"><strong>What are MDR charges on credit cards?<\/strong><\/strong> <p class=\"schema-faq-answer\">Credit-card MDR commonly ranges from around <strong>1.5% to 3%<\/strong> of the transaction value. The actual rate can vary depending on the merchant agreement, payment provider, card network, card type and transaction volume.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1791356836569\"><strong class=\"schema-faq-question\"><strong>Are UPI transactions below \u20b92,000 free?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes. Under the referenced framework, P2M UPI transactions up to \u20b92,000 carry zero MDR.<\/p> <\/div> <\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Source:<\/strong> <a href=\"https:\/\/financialservices.gov.in\/sites\/default\/files\/2026-09\/FAQs---Merchant-Discount-Rate--MDR--on-Select-UPI--P2M--Transactions_0.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">https:\/\/financialservices.gov.in\/<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n<\/div><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#What_Is_MDR_in_a_Payment_Gateway\" >What Is MDR in a Payment Gateway?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#How_Does_MDR_Work\" >How Does MDR Work?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#Do_Customers_Have_to_Pay_Extra_MDR_Charges_on_UPI\" >Do Customers Have to Pay Extra MDR Charges on UPI?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#What_Are_the_Latest_UPI_MDR_Charges_in_2026\" >What Are the Latest UPI MDR Charges in 2026?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#How_are_MDR_Charges_Calculated\" >How are MDR Charges Calculated?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#Can_Merchants_Pass_UPI_MDR_to_Customers\" >Can Merchants Pass UPI MDR to Customers?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#UPI_vs_Debit_Card_vs_Credit_Card_MDR\" >UPI vs Debit Card vs Credit Card MDR<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#Watch_Out_for_These_Merchant_Workarounds\" >Watch Out for These Merchant Workarounds<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u201cUPI payments above \u20b92,000 will now cost extra.\u201d That\u2019s the worry doing the rounds after the latest MDR update. But before you start splitting your UPI payments, here\u2019s the important part: customers are not being charged MDR. The new rules apply to certain merchant payments, while customers continue to pay only the actual transaction amount. &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;What Is MDR? Meaning, Charges and Latest UPI Rules&#8221;<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":5585,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3576],"tags":[5554,5551,5553,5555,5547,5542,5550,5544,5548,5543,5549,5545,5546,5556,5552],"class_list":["post-5582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-upi","tag-how-mdr-works","tag-mdr-charges-means","tag-mdr-charges-on-credit-card","tag-mdr-charges-on-debit-card","tag-mdr-charges-on-upi","tag-mdr-full-form","tag-mdr-in-upi","tag-mdr-meaning","tag-mdr-meaning-in-banking","tag-merchant-discount-rate","tag-upi-mdr-charges","tag-what-is-mdr","tag-what-is-mdr-charges","tag-what-is-mdr-in-payment-gateway","tag-who-pays-mdr-charges"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Is MDR? 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Different rates apply to specified essential services and capital-market transactions.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#faq-question-1791356734749","position":3,"url":"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#faq-question-1791356734749","name":"Is MDR a Tax?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"No. <strong>MDR is not a tax.<\/strong> It is a payment-processing charge associated with eligible merchant transactions.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#faq-question-1791356735315","position":4,"url":"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#faq-question-1791356735315","name":"Is MDR the same as GST?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"No. MDR is a payment-processing charge, while GST is a tax. Applicable GST may be charged on the MDR or payment-processing service.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#faq-question-1791356736091","position":5,"url":"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#faq-question-1791356736091","name":"Who Pays MDR Charges?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"The merchant bears the applicable MDR charges, rather than the customer. For UPI, the updated framework also keeps MDR as a merchant-side charge. Customers continue to pay only the transaction amount.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#faq-question-1791356737073","position":6,"url":"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#faq-question-1791356737073","name":"Is there a monthly limit on free UPI transactions?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"There is no MDR-based monthly quota for individual users under the referenced framework. Standard transaction limits set by banks or UPI for security and risk management may still apply.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#faq-question-1791356738133","position":7,"url":"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#faq-question-1791356738133","name":"What are MDR charges on debit cards?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"For small merchants with turnover up to <strong>\u20b920 lakh<\/strong>, debit-card MDR is capped at <strong>0.40%<\/strong>, with a maximum of <strong>\u20b9200 per transaction<\/strong>. For other merchants, it is capped at <strong>0.90%<\/strong>, with a maximum of <strong>\u20b91,000 per transaction<\/strong>. The applicable limit may also vary based on the payment acceptance infrastructure used.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#faq-question-1791356828441","position":8,"url":"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#faq-question-1791356828441","name":"What are MDR charges on credit cards?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Credit-card MDR commonly ranges from around <strong>1.5% to 3%<\/strong> of the transaction value. The actual rate can vary depending on the merchant agreement, payment provider, card network, card type and transaction volume.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#faq-question-1791356836569","position":9,"url":"https:\/\/jumpp.finance\/blog\/financial-wellness\/upi\/what-is-mdr\/#faq-question-1791356836569","name":"Are UPI transactions below \u20b92,000 free?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Yes. 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