Wednesday, June 25, 2025 | 11:06 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Merchant discount rate on UPI-RuPay credit cards likely to be 2%

NPCI set to seek RBI nod for scheme; free swipes at smaller outlets

upi credit card link
premium

Of the 2% MDR, 1.5% will go towards the issuing bank and the rest will be shared by the acquiring entity and RuPay

Raghu Mohan Mumbai
National Payments Corporation of India (NPCI) and banks have hammered out the contours of the pricing of credit-card transactions on the RuPay-Unified Payments Interface (UPI).

In talks held last week, the consensus veered to a merchant discount rate (MDR) — the charge paid by merchants to the card-issuing bank for card transactions — of 2 per cent. Of this, 1.5 per cent will go towards the issuing bank, with the rest (50 basis points) being shared with RuPay and the acquiring entity.

This can be a bank or players like Mswipe or Paytm. At outlets with an annual turnover of