Effective 15 October 2026
From 15 October 2026, how much will UPI cost my shop?
From 15 October 2026 a merchant pays 0.4% MDR on UPI payments above ₹2,000, capped at ₹300 per transaction. Payments of ₹2,000 or less cost nothing. Small merchants taking up to ₹1 lakh a month over QR straight into a personal account pay nothing at all. You may not pass the charge on to your customer, and your QR code stays the same.
Four tools
Every tool runs on the same rules engine and shows the arithmetic behind each number.
- MDR calculatorType an amount, see the fee and what is left - with the arithmetic shown.
- Does it apply to me?Three questions, one straight answer - yes or no.
- Monthly costA monthly and yearly estimate, with every assumption stated.
- Settlement checkPut in your PSP report and catch anything overcharged. The file never leaves your phone.
What changes on 15 October
15 October 2026
- 0.4% on the full amount of merchant payments above ₹2,000. FAQ question FAQ Q26
- Never more than ₹300 per transaction - past ₹75,000 the fee stops growing. FAQ question FAQ Q32
- Nothing at all on payments of ₹2,000 or less - which is most of them. FAQ question FAQ Q26
- Nothing for small merchants taking up to ₹1,00,000 a month over QR into a personal account. FAQ question FAQ Q23, Q24, Q26, Q25
- Nothing on UPI AutoPay and recurring mandates. FAQ question FAQ Q22
- You may not recover the fee from your customer - it cannot go on the bill. FAQ question FAQ Q34
- Your QR code, your soundbox and your registration all stay exactly as they are. FAQ question FAQ Q25
Read it explained
One article per question - plain language, real rupee examples.
- UPI charges from 15 October 2026: the complete guide for merchantsThe new UPI MDR explained: 0.4% on payments above ₹2,000, capped at ₹300, zero for small P2PM merchants, flat ₹5 in some sectors - with worked examples and FAQ references.
- Does the new UPI MDR apply to my shop? A step-by-step checkWho pays UPI MDR from 15 October 2026, and who does not? Three questions decide whether you are exempt as a P2PM merchant - with four worked shop examples.
- Can a shopkeeper charge the 0.4% to customers? What the rules actually sayCan merchants add the UPI MDR to a customer's bill? No - FAQ Q34 prohibits it. Surcharges, "extra on UPI" signs and higher UPI prices, explained plainly.
- P2PM explained: the ₹1 lakh monthly exemption for small merchantsWho qualifies for the P2PM exemption? Merchants taking up to ₹1 lakh a month over QR into a personal account pay zero UPI MDR - the conditions, the three-month rule, examples.
- How the ₹300 UPI MDR cap works, with examples at ₹5,000, ₹50,000 and ₹1 lakhWhy does UPI MDR stop at ₹300? Where the cap starts (₹75,000), and exactly what payments of ₹5,000, ₹50,000 and ₹1 lakh cost - with the arithmetic shown.
- UPI vs debit card vs credit card: what a merchant actually pays nowUPI vs card fees for merchants: UPI costs 0.4% above ₹2,000, capped at ₹300. Debit cards up to 0.9%, credit cards typically 1.5-2.5% - all from the official FAQ.
- Flat ₹5 sectors: fuel, telecom, insurance, railways, utilities - and what is still unconfirmedWhich sectors pay a flat ₹5 UPI MDR instead of 0.4%? The FAQ names railways, telecom, insurance, fuel and utility bills - and an "among others" list not yet published.
- Why AutoPay and SIP payments carry no UPI MDRNo MDR on UPI AutoPay, SIPs, utility bills or OTT subscriptions (FAQ Q22). Which payments count as mandates, how one-off investments differ, and how to check your settlement.
- How to read your UPI settlement statement and spot a wrong deductionWhere to find the amount, date and fee on a PSP settlement report, and which deductions are wrong: fees under ₹2,000, above ₹300, or before 15 October 2026.
- How much will UPI MDR cost my business? Worked scenarios for a kirana, a restaurant and a pharmacyWhat UPI MDR adds to a month's costs, worked through for a kirana, a restaurant and a pharmacy - counting payments above ₹2,000, not averaging.
Where the money is deducted
What this site stands on
Every figure comes from the NPCI/DFS FAQ of 15 September 2026, and every rule carries the question number it came from. Where the official position is still incomplete, we say so on screen rather than guessing.
What is not settled yetNot confirmed yet
- NPCI's operating circular has not been issued yet
- The small-merchant support fund framework is not finalised FAQ question FAQ Q27