iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
No—under the Department of Financial Services’ current FAQ, an onboarded merchant cannot add its UPI merchant discount rate (MDR) to your bill. The announced framework makes MDR a merchant-side acceptance cost for certain person-to-merchant (P2M) payments. It does not authorize a shop to collect a separate “UPI fee,” “convenience fee” or surcharge from the customer.
The FAQ dated 15 September 2026 says consumers will not be charged for UPI payments. It announces a 0.4% MDR for qualifying P2M transactions above ₹2,000, capped at ₹300 for transactions of ₹75,000 or more, with an effective date of 15 October 2026. The government material available through 13 October 2026 does not include a later implementation notice, so treat those dates as the announced framework and verify any subsequent official update before relying on a change in status.
The short answer for a customer at checkout
If a shop says, “UPI costs extra,” that demand conflicts with the Department of Financial Services (DFS) FAQ’s stated rule. The FAQ uses explicit language: “No, merchants on-boarded cannot pass on MDR charges to customers while accepting payments through UPI.” A merchant may have a payment-acceptance cost within the banking and payment system, but that cost is not described as money to be collected from you as a surcharge.
Do these 3 things before closing this tab:
1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteThis answer concerns a charge linked specifically to paying by UPI. A merchant can still set its normal selling price, levy a disclosed delivery charge, or apply another charge that is genuinely independent of the payment method. The problem is adding an amount because you selected UPI, or describing the merchant’s MDR as a fee that the customer must reimburse.
#1 Best Overall
- 【Professional image】The clear acrylic and black matte base look sleek and professional, making a lasting impression. Make your potential customers scan your QR code without hesitation and help you win business opportunities!
- 【Foldable Design】Unlike typical acrylic signs, this folds so that packing it away isn’t about finding a niche space to avoid cracks, chipping, and fractures. Easily adjust to the right angle for optimal display, and make your flyers stand out!
- 【Magnetic QR Code Stand】The magnetic feature makes changing out QR codes, flyers, or promotional paper super quick. Saves time and allows you to better focus on your business during events!
- 【Environmentally friendly material】The QR code stand is crafted from eco-friendly acrylic, it offers a transparent and clear view. The double-sided design is great for maximizing visibility!
- 【Wide Use】Ideal for personal studios, exhibitions, trade shows, reception areas, retail stores, restaurants, booths, meeting rooms, hotels, and hair salons, the ability to flexibly display business advertising information is an ideal tool for effective brand promotion.
MDR and a UPI surcharge are different things
What MDR means
Merchant discount rate is the payment-acceptance charge applied within the payment ecosystem to a merchant for an eligible transaction. The announced 2026 framework describes MDR as payable on the merchant side for specified P2M UPI payments. It is not presented as a consumer transaction fee.
What a surcharge means
A surcharge is an additional amount shown on the customer’s bill because the customer chose UPI. Examples include “UPI charge,” “QR fee,” “digital-payment fee” or “MDR recovery.” Under the DFS FAQ, an onboarded merchant cannot pass MDR on in this way. A sign at the counter or a line on an invoice does not change who the policy says must bear the charge.
Other platform fees
The FAQ also says UPI app providers may not add platform fees for UPI payments and that consumers remain free from transaction charges. That statement is separate from the merchant-side MDR rule, but both point to the same practical result: the customer should not be presented with a UPI transaction fee at checkout.
Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchPC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11What the announced 2026 MDR framework contains
The following figures come from the DFS FAQ dated 15 September 2026. They describe the announced framework rather than an independently verified post-15 October implementation notice.
Rank #2
- Classic Size: 4 x 6 inch. Dimensions: 4 x 6”(102mm X 153mm) , QR Code Signs.
- Premium Acrylic: transparent and super strong.The clear display stand vendor booth display items allows your signs to shine, grabbing customers' attention.
- Metal Stand: Easy to load in paper signs and stay sturdy. These versatile acrylic paper holder can be used in a variety of settings, making them ideal for any small business supplies.
- Slanted Back Support: To ensure that your pamphlet can maintain a certain Angle of tilt and not tip forward.
- Stable Base Extended: Allows your book to be more stable on the table.
| Item | Announced rule | Who it concerns |
|---|---|---|
| Standard MDR | 0.4% of a qualifying transaction | Specified P2M UPI transactions above ₹2,000 |
| Maximum MDR | ₹300 per transaction | Transactions of ₹75,000 or more |
| Transactions at or below ₹2,000 | Unaffected by the announced MDR | More than 95% of P2M UPI transactions by volume, according to the FAQ |
| Small-vendor P2PM tier | Zero MDR remains in place | Merchants meeting the relevant classification and monthly-collection conditions |
| Person-to-person (P2P) payments | Remain free | Transfers between individuals rather than purchases from a merchant |
| Stated start date | 15 October 2026 | Effective date given in the 15 September 2026 FAQ |
The FAQ’s statement that more than 95% of P2M transactions by volume are up to ₹2,000 is a volume measure, not a promise that every small-value transaction has the same merchant classification. A separate News On AIR report citing government figures says around 96% of UPI merchant transactions remain unaffected. That is a reported government figure, not an independent calculation.
Which payments and merchants are covered?
P2P: sending money to another person
P2P transfers remain free under the FAQ. This includes a transfer between individuals rather than a purchase from a business. The announced MDR framework is not a reason for a friend, family member or other individual recipient to add a UPI fee.
Standard P2M: paying a business
P2M means person-to-merchant payment. For the qualifying standard P2M category, the announced rate is 0.4% when the transaction is above ₹2,000, subject to the ₹300 cap at ₹75,000 and above. The existence of that merchant-side rate does not give the business permission to add 0.4% to your invoice.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Small P2PM merchants
The FAQ says small vendors in the P2PM framework remain at zero MDR. It describes eligibility through merchant classification and monthly collections. The payment amount alone does not determine whether a merchant is in or out of that exemption: a payment above ₹2,000 does not automatically remove the small-vendor zero-MDR treatment.
Rank #3
- Multi-Platform NFC & QR Code Display Stand: Engage your visitors with this transparent acrylic display stand featuring review tap card, Instagram QR code stand, and Facebook follow us sign. Each platform has an independent NFC tag and QR code, letting guests review us or follow us individually. Works seamlessly with all smartphones
- Easy Setup & Platform Activation: Quickly set up each platform by scanning its individual QR code, then enter the activation code to link it to the corresponding platform. Each platform operates independently, allowing visitors to instantly interact with your review stand, Instagram QR code stand, or Facebook follow us sign
- Analytics Dashboard & Engagement Tracking — No App, No Subscription Fees: Access visitor statistics and engagement data through your dashboard. See how often customers access your Google review $ social media page and gain greater visibility into customer interactions. Simply activate once and manage everything from your dashboard
- Premium Clear Acrylic Stand: Made from crystal-clear acrylic, this 110×210 mm display stand neatly organizes your Google Reviews, Instagram andFacebook links in one professional display. Customers can instantly connect through either NFC tap or QR code scan, making it easier to review or follow your social media—all from a single stand while keeping your counter clean and organized
- Suitable for All Business Environments: Perfect for small businesses, cafés, salons, retail stores, or events, this stand works as a professional review us and follow us on social media sign. Its modern, transparent design fits seamlessly in any commercial setting, enhancing visibility and engagement
Because the supplied official summary does not state the complete classification thresholds or monthly-collection figures, a customer should not try to decide a merchant’s category from the bill amount alone. The acquiring bank or payment provider applies the relevant merchant classification.
Worked examples of the announced rate
These examples show how a merchant-side percentage would work; they do not create a right to charge the customer.
- ₹3,000 qualifying P2M payment: 0.4% is ₹12. That amount, if applicable under the merchant’s classification, is an MDR cost within the payment system, not an automatic ₹12 addition to your bill.
- ₹20,000 qualifying P2M payment: 0.4% is ₹80. The customer still should not see an ₹80 UPI surcharge.
- ₹75,000 qualifying P2M payment: 0.4% calculates to ₹300, matching the stated cap.
- ₹100,000 qualifying P2M payment: 0.4% would calculate to ₹400, but the announced maximum is ₹300 per transaction for transactions of ₹75,000 or more.
- ₹2,000 payment: The FAQ says transactions up to ₹2,000 are unaffected by the announced MDR. That does not, by itself, determine every other merchant classification or commercial charge.
Why older articles may give a different answer
An 18 August 2025 Ministry of Finance answer to Lok Sabha Unstarred Question No. 4111 said there was then no proposal to impose transaction charges on UPI. That is historical context, not the latest description of the announced framework. The September 2026 DFS FAQ came later and introduced the stated 0.4% merchant-side MDR for selected P2M transactions.
Older headlines saying “UPI has no MDR” may therefore be accurate for the period they covered but incomplete for the 2026 announcement. The lasting customer-facing point is narrower and more useful: even where a merchant-side MDR applies, the FAQ says an onboarded merchant cannot pass it to the customer.
Rank #4
- ✅ ALL-IN-ONE SCAN TO PAY QR CODE SIGN:Accept payments effortlessly with our custom QR code stand! Perfect for Venmo, Cash App, PayPal, Zelle, or any payment app you use. Just add your QR codes, set it up, and let customers scan and pay in seconds—no more fumbling with cash or card readers at your small business, vendor booth, salon, or shop.
- ✅ HIGH-QUALITY ACRYLIC & STURDY WOODEN STAND:Made with premium, clear acrylic (thick and durable, no easy scratches) and a solid wooden base, this QR payment sign stays stable on your countertop, table, or checkout desk. The smooth, glossy finish keeps your QR codes clear and scannable, even with daily use at busy markets or shops.
- ✅ FULLY CUSTOMIZABLE TO YOUR NEEDS:Upload your own QR codes, choose your background design, and add custom text to make your payment sign unique. Whether you need 1, 2, 3 or 4 QR codes for payments, social media, or Wi-Fi, we’ll print it exactly how you want—great for branding your small business or side hustle.
- ✅ PERFECT FOR EVERY BUSINESS & EVENT:Ideal for small businesses, pop-up shops, craft fairs, farmers markets, food trucks, salons, boutiques, and even yard sales. Whether you’re a vendor, freelancer, or local shop owner, this QR code stand makes contactless payments easy for you and your customers.
- ✅ EASY TO USE & LONG-LASTING:Setting up your custom QR code sign is simple: just remove the protective film, place it in the wooden stand, and start accepting payments. The high-quality print won’t fade, so your QR codes stay scannable for years. If you have any questions about customization or your order, our support team is here to help!
What to check when a shop adds a UPI fee
- Read the bill line carefully. Check whether the extra amount is labelled UPI fee, MDR, QR charge, convenience fee or something similar, and whether the base price or a delivery charge is being confused with it.
- Ask whether the amount applies only to UPI. A charge that disappears when you pay by cash or another method is a payment-method surcharge. Ask the merchant to show the same price and any general charges before payment.
- Request an itemised receipt. Keep the invoice, the UPI transaction confirmation, the QR or checkout screen and any written notice. These records establish what was advertised and what was collected.
- Do not assume the percentage is authoritative. A merchant may quote 0.4%, but the announced rate is a merchant-side rule for qualifying transactions and categories. The customer is not required to validate or reimburse it.
- Check for an updated official notice. The FAQ gives 15 October 2026 as its effective date. Since implementation details can be updated, consult the latest DFS or Ministry of Finance communication for the date of your transaction.
The official materials identified here establish the no-pass-through rule but do not set out a specific consumer complaint portal, mandatory refund timeline or adjudication process for an individual surcharge dispute. Do not treat a generic online complaint route as an officially prescribed remedy unless a current authority confirms it. You can still preserve the evidence and ask the merchant or payment provider to explain and reverse a charge that was collected as a UPI surcharge.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Common misunderstandings
“If the merchant pays MDR, it must be allowed to recover it from me.”
No. The FAQ separates the merchant’s acceptance cost from the consumer’s payment. It expressly says onboarded merchants cannot pass MDR to customers.
“Every payment above ₹2,000 attracts 0.4%.”
No. The rate applies only to qualifying P2M transactions and is affected by merchant category. The FAQ says small P2PM vendors remain at zero MDR, and a payment amount above ₹2,000 alone does not end that exemption.
“UPI is free, so no merchant-side charge can ever exist.”
That was a useful description of earlier policy conditions, but it is too broad for the announced 2026 framework. The 2025 parliamentary answer reflected the position at that time. The later FAQ describes a limited merchant-side MDR while keeping consumers free from transaction charges.
Best Value
- 【Elegant Design】The sign adopts a standing design, which is easy to move and place. The size reaches 3.9*5.5 inches, which is very eye-catching. The material is high-end plastic material, which highlights the high-end of your brand. The design of large NFC coil and QR code allows users to enter your shop page more smoothly to follow you.
- 【Win More Followers】More followers means higher SEO and more sales while attracting new customers. Our eye-catching stands are perfect for local businesses, shops, restaurants, offices or any type of business that is looking to improve their online presence.
- 【No Monthly Fees】Our products are purchased once and used forever. No subscription or monthly payments are required. Products can be tapped and scanned by customers an unlimited number of times.
- 【No App, Easy Setup】You don't need to download any App, you can easily set up the sign on our website, and it can be set up in a few minutes. And our backend provides the service of changing the settings at any time.
- 【Data Statistics】You can view the data of a single stand or multiple stands through your backend. If you have multiple stores, you can also view the data of a single store or multiple stores. This makes it easier for you to analyze data and formulate business strategies.
“A QR-code payment is different from UPI.”
The relevant question is the payment rail and transaction category, not whether you scanned a printed QR code, a display or a device. If the payment is a UPI transaction, the FAQ’s consumer and merchant rules are the ones to check.
A quick decision checklist
- Is the payment a purchase from a merchant or a person-to-person transfer?
- Does the bill add money solely because you selected UPI?
- Is the merchant claiming to recover MDR from you?
- Could the amount instead be a disclosed charge that applies regardless of payment method?
- Have you retained the receipt, payment confirmation and any surcharge notice?
- Are you checking the latest official communication rather than relying on a pre-2026 article?
If the answer to the second or third question is yes, the charge conflicts with the DFS FAQ’s stated policy. The announced MDR, where it applies, is a merchant-side cost; it is not a customer fee that can simply be added to the bill.
Bottom line for shoppers and merchants
The government’s 15 September 2026 FAQ says consumers will not pay UPI transaction charges and that onboarded merchants cannot pass MDR on to them. The announced framework may impose 0.4% MDR on qualifying P2M transactions above ₹2,000, capped at ₹300 for transactions of ₹75,000 or more, while keeping P2P payments and the small-vendor P2PM tier at zero MDR under the stated conditions. None of those merchant-side provisions authorizes a UPI surcharge on a customer’s bill.
Recommended Free Tools
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
