What the new UPI merchant charge from 15 October 2026 costs on any payment, and split-bill QR codes of ₹2,000 or less.
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Am I a small (P2PM) merchant?
Merchant pays₹40
Customer pays extra₹0
Merchant receives₹9,960
Above ₹2,000, merchants pay 0.4% of the payment.
Same payment by card (for comparison)
UPI₹40
Debit card (up to 0.9%)up to ₹90
Credit card (typically 1.5–2.5%)₹150 – ₹250
Estimate a month of charges
Applies from 15 October 2026, per NPCI's FAQ dated 15 September 2026. Merchants can't add this charge to the customer's bill.
The New UPI Charge in Plain Numbers
From 15 October 2026, merchants pay a small fee, the merchant discount rate (MDR), on UPI payments above ₹2,000. Customers pay nothing extra, and most everyday payments are under ₹2,000, so they stay free. These are the rates from NPCI's official FAQ dated 15 September 2026:
Small vendors (P2PM, up to ₹1 lakh a month into own account)
No charge on any amount
Person-to-person transfers
No charge
UPI AutoPay (recurring mandates)
No charge
The customer, in every case
Never charged
NPCI says education fees above ₹2,000 get "flat-fee structures or capped processing rates" but hasn't published the figure, so the calculator doesn't guess it.
How to Use This Tool
1Enter the payment amountOr tap one of the examples, such as ₹2,000, ₹2,001 or ₹10,000, to see where the charge starts.
2Choose the type of businessRegular merchants pay 0.4% above ₹2,000; fuel, utilities, insurance, railways and telecom pay a flat ₹5; small P2PM vendors pay nothing.
3Read the resultWhat the merchant pays, what they receive, and what the same payment would cost by debit or credit card.
4Split a bill if both sides agreeThe second tab turns a bill into payments of ₹2,000 or less, each with its own QR code, fixed amount and "part 1 of 5" note.
Good to Know
The charge is paid by the merchant, not the customer. NPCI says merchants can't pass it on, and UPI apps can't add a platform fee.
The threshold is per payment: a ₹2,000 payment is free, a ₹2,001 payment costs 0.4% of the whole amount, about ₹8.
If your QR pays into your own account and you receive up to ₹1 lakh a month, you may be a P2PM merchant with no charge at all. NPCI says merchants over ₹1 lakh a month for 3 months in a row move to the regular category.
Existing QR codes, stands and sound boxes keep working. NPCI says merchants don't need to replace or re-register them.
Splitting a bill is not banned today, but repeated identical payments can trip a bank's fraud checks, and customers can decline. For most bills the saving is small: ₹40 on ₹10,000.
Everything is calculated in your browser. Your UPI ID and amounts aren't sent anywhere.
Need a single payment code for your counter? Use the UPI QR Code Generator, or put UPI, Google review and Wi-Fi codes on one sign with the Shop QR Kit.
Frequently Asked Questions
What is the new UPI charge from 15 October 2026?
NPCI has introduced a merchant discount rate (MDR) on person-to-merchant UPI payments above ₹2,000: 0.4% of the payment, capped at ₹300 for payments of ₹75,000 or more. Railways, telecom, insurance, fuel and utilities pay a flat ₹5 instead. Payments of ₹2,000 or less stay free.
Do customers have to pay anything extra?
No. NPCI's FAQ says UPI stays free for consumers, UPI apps can't charge a platform fee, and merchants can't pass the MDR on to customers. If a shop asks for an extra "UPI charge", you can refuse and report it through your UPI app or the merchant's bank.
How much is the charge on a ₹10,000 payment?
₹40 for a regular merchant (0.4% of ₹10,000), so the merchant receives ₹9,960. A small P2PM vendor pays nothing, and fuel or utility merchants pay a flat ₹5.
Is a ₹2,000 payment charged?
No. NPCI's own example table shows ₹0 for a ₹2,000 payment. The charge applies only to payments above ₹2,000.
Can I split a bill into ₹2,000 payments to avoid the charge?
Nothing in NPCI's FAQ forbids it, and the charge is worked out per payment. But several identical payments to one merchant in a short time can be flagged by banks' fraud checks, banks limit how many UPI payments a customer can make in a day, and the customer can say no. Small P2PM vendors don't need to split at all. If you do split, agree it with the customer first.
Are person-to-person UPI transfers charged?
No. Sending money to family or friends, splitting a dinner bill, or moving money between your own accounts stays free for both sides.
Does this apply to RuPay credit cards on UPI?
No. NPCI says credit cards and credit lines linked to UPI follow separate credit product rules. Ask your bank or payment app for those rates.
Source: NPCI, "Merchant Discount Rate (MDR) on Select UPI (P2M) Transactions — Frequently Asked Questions", 15 September 2026. Rates can change; check NPCI, RBI or PIB announcements for the latest.
