Quick answer
Credit card swipe charges are about 1.1% to 2% of each payment; RuPay debit and UPI are free, and other debit cards cost at most 0.40% (small shops) or 0.90% (larger). On top of the MDR, a swipe machine usually has rent or a device price. Rent runs from ₹99 to ₹425 a month where it's published. Add 18% GST to all of it.
Card swipe MDR: what each card costs
| Card or method | Turnover up to ₹20 lakh | Above ₹20 lakh |
|---|---|---|
| UPI (QR on the machine) | Free (0.4% above ₹2,000 from 15 Oct if over ₹1 lakh/month) | Free until 15 Oct, then 0.4% above ₹2,000 (max ₹300) |
| RuPay debit | Free | Free |
| Visa / Mastercard debit | Up to 0.40%, max ₹200 | Up to 0.90%, max ₹1,000 |
| Credit cards | No cap; about 1.1% to 2% by business category | |
| Amex, corporate, international | Usually 2.75% to 3.5%, up to 3.99% for hotels (Paytm) | |
Debit caps: RBI circular, 6 December 2017, in force since 1 January 2018. RuPay debit and UPI have been zero-MDR since 2020.
POS machine charges by provider
| Provider | Machine | Rent | Debit MDR | Credit MDR | Settlement |
|---|---|---|---|---|---|
| Paytm Card Machine | Deposit (amount in app) | Shown in app only | RuPay 0%; Visa/Mastercard 0.40% (turnover < ₹20L); larger: 0.40% up to ₹2,000, 0.90% above | 1.20% utilities/education · 1.40% grocery · 1.99% others; Amex 2.75%+; international 3.50% | T+2 |
| Razorpay POS | ₹1,000 install, or ₹7,799 / ₹5,699 one-time (no rent) | ₹425 or ₹325 a month | Not published | 1.10% utilities/fuel/education · 1.30% grocery · 1.85% others | Not published |
| HDFC Bank | As per agreement | ₹99/month service charge | 0.40% (cap ₹200) · 0.90% (cap ₹1,000) for turnover above ₹20L | Consumer cards not published; commercial 2.75%; international 3% | Not published |
| Kotak Bank | Agreed in the form | Agreed in the form | RBI caps | Agreed in the form | T+1 (same day: 0.20% + GST) |
| PhonePe, Pine Labs, Mswipe, BharatPe, SBI, ICICI, Axis | Not published | Not published | RBI caps apply | Not published | ICICI T+1; others not published |
Most providers don't publish machine prices or rent; they quote when you apply. Numbers above are only those published on each provider's own page. Scroll the table sideways on a phone.
Hidden POS charges to ask about
- Low-usage penalty: HDFC charges up to ₹499 a month if card sales on the terminal are very low.
- Deposit: Paytm refunds 75% of the deposit if you return the machine in the first 3 months, and nothing after 9 months.
- Installation: Razorpay charges ₹1,000 on its monthly plans.
- Same-day settlement: Kotak charges 0.20% + GST for each same-day payout.
- Lost or damaged machine: HDFC lists ₹4,000 to ₹15,000 depending on the device.
- GST: 18% on MDR, rent and fees.
Zero MDR swipe machine: does it exist?
Partly. Zero MDR applies only to RuPay debit cards and UPI, on every machine. None of the providers we checked publishes zero MDR on credit cards or Visa/Mastercard debit cards, so a machine sold as "zero charges" still has card MDR, rent, or both. Before signing, ask for three numbers: the credit card MDR for your business category, the monthly rent, and any minimum-usage penalty.
Do you need a card machine at all?
If most customers pay by UPI, probably not. A printed UPI QR code is free, and a soundbox costs about ₹25 to ₹125 a month. A card machine makes sense when many customers pay by credit card, when tickets are large, or when customers expect to swipe (electronics, jewellery, restaurants, pharmacies). Some newer soundboxes also accept tap-to-pay cards up to ₹5,000.
Compare every option side by side on the cheapest way to accept payments, or see payment gateway charges for online sales.
Frequently asked questions
How much are charges on a POS machine?
There are two parts. The MDR per payment: RuPay debit and UPI are free, other debit cards are capped by RBI at 0.40% (max ₹200) for shops with turnover up to ₹20 lakh and 0.90% (max ₹1,000) for larger ones, and credit cards usually cost 1.1% to 2%. Then the machine: rent (for example Razorpay's ₹325 to ₹425 a month) or a one-time price, and sometimes a setup fee. GST of 18% applies to both.
What are card swipe machine charges per transaction?
For a ₹1,000 payment at a small shop: RuPay debit ₹0, Visa or Mastercard debit up to ₹4, and a credit card about ₹11 to ₹20 depending on the provider and category, plus 18% GST on the fee.
What is the MDR on credit cards at a POS machine?
RBI doesn't cap it. Published rates include Paytm at 1.20% to 1.99% and Razorpay at 1.10% to 1.85% by business category. Amex, corporate and international cards cost more, often 2.75% to 3.5%.
Is there a monthly rent for a card swipe machine?
Usually yes, unless you buy the device outright. Razorpay publishes ₹425 or ₹325 a month (plus ₹1,000 installation) or a one-time ₹5,699 to ₹7,799. HDFC charges ₹99 a month per terminal plus a penalty of up to ₹499 if your card sales are very low. Paytm shows rent only in its app.
Is UPI free on a POS machine?
Today, yes: Paytm, HDFC and Kotak list UPI at 0%. From 15 October 2026 the new 0.4% MDR (max ₹300) applies to merchant UPI payments above ₹2,000. Providers haven't yet updated their card machine tariffs, so ask yours how it will apply. Small merchants receiving up to ₹1 lakh a month by UPI QR stay exempt.
Is a POS machine worth it for a small shop?
Only if many customers pay by credit card or ask to swipe. With UPI and RuPay debit free, a shop taking ₹30,000 a month by card could spend more on rent than on MDR. Use the calculator above with your own numbers.
Can a shop charge customers extra for card payments?
No. RBI rules say debit card MDR must not be passed on to customers, and the new UPI rules also ban passing MDR on.
Sources
- Paytm pricing page
- Razorpay blog, 8 Jan 2026
- HDFC schedule of charges (undated)
- Kotak fees page
- RBI debit card MDR circular (2017)
- All checked 27 September 2026. For information only; your rates are in your merchant agreement.