New Delhi, Oct. 5 -- With the UPI merchant discount rate (MDR) set to apply from 15 October 2026, merchants will pay a 0.4% charge on eligible person-to-merchant (P2M) UPI transactions above Rs.2,000. The charge will apply to the merchant and not to the customer making the payment.

But how does this UPI MDR compare with the charges merchants typically pay when customers use debit or credit cards? Here is what you need to know.

According to NPCI FAQs released on 15 September, "UPI MDR is structured to be much lower than all traditional card-based transaction fees. Standard credit card MDRs typically range from 1.5% to 2.5% per transaction, while debit card MDRs are capped up to 0.90%."

Credit card MDRs can vary depending on factors such...