Payment charges at a glance
| Method | MDR for merchant |
|---|---|
| UPI up to ₹2,000 | Zero |
| UPI above ₹2,000 | 0.4%, max ₹300 |
| UPI, small merchant (≤ ₹1 lakh/month) | Zero |
| RuPay debit card | Zero |
| Other debit cards, turnover ≤ ₹20 lakh | Up to 0.40% (QR 0.30%), max ₹200 |
| Other debit cards, turnover > ₹20 lakh | Up to 0.90% (QR 0.80%), max ₹1,000 |
| Credit cards | Set by bank, often ~1.5–2% |
| RuPay credit card on UPI, above ₹2,000 | Set by bank, e.g. 0.5–1.75% |
18% GST applies on top of MDR in each case.
Debit card MDR: RBI rules
RBI's debit card MDR circular, in force since 1 January 2018, caps what banks can charge merchants. Merchants with turnover up to ₹20 lakh in the previous year pay at most 0.40% on card machines and online payments (0.30% via QR), capped at ₹200 per payment. Larger merchants pay at most 0.90% (0.80% via QR), capped at ₹1,000.
RuPay debit card: zero MDR
In September 2026 the government notified, under Section 10A of the Payment and Settlement Systems Act, that no charges can be levied on RuPay debit card payments, at any amount, or on UPI payments up to ₹2,000. For a merchant, a RuPay debit card is free to accept.
Credit card MDR
Credit card MDR has no RBI cap. Banks set it by merchant category, and it's usually the most expensive way to get paid. RuPay credit cards on UPI also follow card rules: Canara Bank, for example, publishes rates from 0.50% to 1.75% above ₹2,000. See our RuPay credit card UPI charges guide.
UPI: the cheapest option for most merchants
UPI remains free up to ₹2,000 and for small merchants. Above that, 0.4% capped at ₹300 is lower than debit cards for larger merchants and far lower than credit cards. Details are in UPI charges above ₹2,000, based on the official FAQ.
Frequently asked questions
What is the MDR on debit cards in India?
RBI caps debit card MDR. For merchants with annual turnover up to ₹20 lakh: up to 0.40% (max ₹200) on card machines and online, or 0.30% (max ₹200) via QR. For other merchants: up to 0.90% (max ₹1,000) on card machines and online, or 0.80% (max ₹1,000) via QR. RuPay debit cards carry no charges.
Is there MDR on RuPay debit cards?
No. The government has notified under Section 10A of the Payment and Settlement Systems Act that no charges can be levied on RuPay debit card payments, at any amount.
What are credit card MDR charges in India?
There is no RBI cap on credit card MDR. Banks set it by merchant category, commonly around 1.5% to 2%, plus 18% GST. Check your bank or payment provider's rate and enter it in the calculator.
Which payment method is cheapest for a merchant?
RuPay debit cards and UPI payments up to ₹2,000 cost nothing. Above ₹2,000, UPI at 0.4% (max ₹300) is usually cheaper than Visa/Mastercard debit cards for larger merchants and much cheaper than credit cards.
Can I charge customers extra for paying by card?
No. RBI directs banks to ensure merchants do not pass debit card MDR on to customers, and the UPI rules also prohibit passing MDR on.
Last updated 26 September 2026. For information only; confirm rates with your bank or payment provider.