Economy, business and finance
Free to fee: What new UPI MDR means for you and your kirana store
Why is govt introducing MDR for UPI payments? Does it mean cash is better? Should you be looking at credit or debit cards? Here's a breakdown of the facts
India’s UPI payment system is entering a new phase.
From October 15, person-to-merchant (P2M) UPI transactions above Rs 2,000 will attract a Merchant Discount Rate (MDR) of 0.4 per cent. The Centre's move to introduce the MDR has raised much concern among traders, industry bodies, retailers and consumers. What exactly is happening? We give you the lowdown.
What exactly is MDR?
MDR is a fee associated with processing a digital merchant payment. It is distributed among participants in the payment ecosystem, including banks, payment service providers and other entities involved in processing and settling the transaction.