Photo: LiveMintUPI MDR: ‘Not a single penny’ will go to govt; earnings to be shared among banks and other entities, says report | Today News
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The implementation of a merchant discount rate for certain UPI transactions means that businesses accepting larger payments will face new fees, altering transaction costs within the digital payment ecosystem.
Starting from October 15, a new merchant discount rate is set to take effect for businesses that accept unified payments interface transactions above the value of two thousand rupees. According to a recent report, the entirety of these earnings will be distributed directly among participating banks and various other corporate entities rather than the government, meaning authorities will not receive any portion of the revenue generated through this fee structure.
Merchant discount rate refers to the fee paid by a merchant to a bank for accepting payment from their customers through digital methods. It is typically distributed among the payment service providers, technology vendors, and acquiring banks involved in processing the transaction.
- •The rollout of the new merchant discount rate structure on October 15.
- •Reactions from merchants regarding the fees applied to UPI payments exceeding two thousand rupees.
- •How banks and participating entities divide the generated earnings.