RuPay Credit Card UPI Charges Above ₹2,000
Last updated 26 September 2026
When a customer pays with a RuPay credit card through UPI, the merchant pays a card-style MDR, which is usually much higher than the new 0.4% UPI rate. The customer pays nothing extra.
Different rules from regular UPI
The new UPI MDR starting 15 October 2026 (0.4%, capped at ₹300) applies to payments from bank accounts. The official government FAQ says RuPay credit cards linked to UPI follow standard credit card guidelines instead. That means each bank sets its MDR by merchant category, with no ₹300 cap.
Example rates: Canara Bank
Canara Bank has published indicative MDR rates for RuPay credit card payments on UPI above ₹2,000, effective 1 June 2026. Other banks and payment apps use similar category-based rates, but the exact numbers vary. The example column shows the total deduction on a ₹5,000 payment, including 18% GST.
| Merchant category | MDR | On ₹5,000 (incl. GST) |
|---|---|---|
| Public sector insurance companies | 0.5% | ₹29.50 |
| Agriculture, railways, transit, transport, telecom, insurance, education, government, post office | 0.7% | ₹41.30 |
| Fuel | 0.75% | ₹44.25 |
| Supermarkets, convenience stores, contractor services | 1.1% | ₹64.90 |
| All other categories | 1.75% | ₹103.25 |
18% GST applies on top of the MDR. Source: Canara Bank. Your bank's rates may differ, and banks can revise them.
Calculate your RuPay credit card charges
Open the UPI MDR calculator, choose Custom MDR rate as the merchant type, and enter your bank's rate (for example 1.75). You'll see the MDR, GST and what you'll actually receive.
Who pays?
The merchant. The MDR is deducted from the settlement. Customers paying with a RuPay credit card on UPI don't pay an extra fee to the shop.
How to find your exact rate
- Check the MDR or fee page of your bank or payment app (PhonePe Business, Paytm for Business, Google Pay for Business, and so on).
- Look at your settlement report: fees on credit card UPI payments are sometimes labelled "MDR recovery".
- Ask your bank which merchant category (MCC) your business is registered under, since the rate depends on it.
Frequently asked questions
Does the customer pay extra for RuPay credit card payments on UPI?
No. The charge is paid by the merchant and deducted from the settlement. The customer pays the normal price.
Does the new 0.4% UPI MDR apply to RuPay credit cards?
No. According to the official government FAQ, RuPay credit cards linked to UPI follow standard credit card guidelines, not the UPI MDR framework that starts on 15 October 2026.
Is there a charge on RuPay credit card UPI payments below ₹2,000?
The published bank schedules we've seen, such as Canara Bank's, apply MDR on RuPay credit card UPI payments only above ₹2,000. Confirm your bank's schedule, as rates and rules can differ.
How much is the charge on a ₹5,000 RuPay credit card UPI payment?
At Canara Bank's default 1.75% rate, MDR is ₹87.50 plus ₹15.75 GST, a total of ₹103.25. The merchant receives ₹4,896.75. Rates differ by bank and merchant category.
Related: UPI vs card charges calculator · UPI charges above ₹2,000 (bank account payments) · Is UPI free for customers?