UPI Payment rules change from today, who will pay the charge
The new UPI payment rule starts from today creating lots of confusion for customers. Here we have a clear picture on who is liable to pay the interchange charges on UPI payments,.
After the recently introduced interchange charges on UPI payments, users are in a dilemmatic situation and surf through varied sources to know how this new rule will affect their future transactions. If you are also worried for the same reason, then we shall let you know that there is nothing to worry as the National Payments Corporation of India (NPCI) and several digital payment firms such as Paytm and PhonePe have issued clarification on the same. As per the clarification, the fees will be applicable for the Prepaid Payment Instrument (PPI) merchant transactions and not for the customers. Then you must know who will pay the fees and what will be the new rule all about. Let’s have a look.
What says the Notification
Clarifying on the recently introduced surcharge rules, NPCI said that 1.1 percent interchange fee will be applicable on any UPI transaction of more than Rs 2,000 via prepaid payment instruments (PPI) like online wallets or pre-loaded gift cards. This fees will be paid to wallet issuers like banks, payment banks, etc by payment service providers like Paytm, Phonepe, Google Pay, etc. to cover the costs to accept, process, and authorize the transactions.
So the best part is the fees will not be applicable to consumers for UPI payments, Bank accounts or wallets. And merchants will pay the cost, but only if they accept to pay any charge levied by the QR company. That means it’s a an absolute choice of the merchants to decide if they would accept the PPI or not.
Explaining the entire scenarios, Paytm founder and CEO Vijay Shekhar Sharma said in a tweet “There is absolutely no charge for consumer nor to merchant for payments from UPI linked bank accounts. It is rather for QR company to decide how do they pay this interchange to issuer. Right now government is paying for payment charges to be charged to merchants for payments from UPI.”
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