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RUPAY UPI CREDIT CARD BLOCKED BY MERCHANT
- Thread starter rixypanther
- Start date
D₹V
TF Pioneer
You might have registered as new 😉
Or merchant restricted to accept new payments.
Both can be reason.
Shiladitya
TF Buzz
D₹V
TF Pioneer
2 payments from 2 cards you mentioned
Shiladitya
TF Buzz
Checked it. The online limits are quite high and has not been reached yet. How weird
Shiladitya
TF Buzz
D₹V
TF Pioneer
Probably merchant problem, try with other merchant
Shiladitya
TF Buzz
amitagl27
TF Buzz
Looks like MDR on UPI is higher than the MDR on POS machine, and that is the reason most merchants are disabling CC on UPI...For sure, govt. has to do something or else plan to expand Rupay CC will go for a toss...
And the real beneficiaries will be Visa/Master/Amex.
https://www.moneycontrol.com/news/b...h-upi-hits-the-mdr-speedbreaker-11534981.html
And yes, this limit of 2000, it isn't helping...as soon as a merchant discovers the MDR charges in his statement, his immediate reaction will be to stop accepting Rupay CC on UPI. My brother runs a hardware shop in Bihar and he stopped it the very next month after he discovered the charges.
Raising awareness will take huge investments. Instead, govt. should come up with some schemes to give incentives to the banks. Also need to involve the UPI apps, they need to be incentivized as well.
And the real beneficiaries will be Visa/Master/Amex.
https://www.moneycontrol.com/news/b...h-upi-hits-the-mdr-speedbreaker-11534981.html
And yes, this limit of 2000, it isn't helping...as soon as a merchant discovers the MDR charges in his statement, his immediate reaction will be to stop accepting Rupay CC on UPI. My brother runs a hardware shop in Bihar and he stopped it the very next month after he discovered the charges.
Raising awareness will take huge investments. Instead, govt. should come up with some schemes to give incentives to the banks. Also need to involve the UPI apps, they need to be incentivized as well.
Abhishek012
TF Pioneer
Moneycontrol wale andh sandh likhte rahete hai.
MDR is same, its depend on merchant categories.
For example - suppose if you have grocery or electronic shop and you purchase HDFC POS machine and HDFC will charge you 1.25% to 1.3% MDR for Grocery or electronic category.
Now 2016-2017 has come. You have noticed an increase in customers paying through UPI. You have registered on PhonePe/GPay as a merchant for UPI QR codes, but you added any falana dimkana business categories or you have added none at all. Companies themselves have categorized you under hotel and travel category, and provided you with merchant UPI QR codes.
What happens now? Now it's 2022-2023. RuPay CC on UPI launched. Since your merchant UPI QR was registered under the hotel and travel categories, and hotel or travel category MDR has charged 1.75% to 2%, you feel that you are being charged a higher MDR.
But in reality, You will have to change the category of your merchant UPI QR to grocery or electronics and pay only 1.25% to 1.3% MDR.
It's also possible that you negotiated with HDFC bank and managed to reduce the MDR changes. In such cases, you'll have to use the HDFC merchant account's UPI QR, which will have a lower MDR, similar to a credit card MDR. Either you'll need to print out your HDFC POS merchant account's UPI QR code and display it at your shop, or Contact HDFC, they will send you a UPI QR code themselves, if they provide such a service.
Sometimes, after so much talking, I feel like I should just go and write my article in Moneycontrol or Economic Times. 😒😒
By the way, recently UPI has also released its circular stating that payment companies should properly assign their merchant categories, correcting any incorrect merchant category assign.
panchabhut
TF Ace
POS MDR is highly negotiable. Banks offer various lower packages. Many merchants opt for UPI QR instead of POS because they do not want to pay any MDR. Both type of merchants would promptly disable UPI-CC the moment they get hit by MDR.
Problem is not with the merchants. It is with NPCI big bosses who are unwilling to lower the MDR charges for txn above 2000. If UPI-CC MDR was half of POS MDR, most merchants would promptly opt for that.
For Rupay the whole process in within India only. So even if UPI-CC MDR is kept at 0.75% for all txn above 2000, NPCI would still be earning. But they have become greedy. Net result of the greed, merchants disable UPI-CC completely, public get frustrated and then vent their anger on social media and other platform and UPI-CC becomes a non-starter.
Problem is not with the merchants. It is with NPCI big bosses who are unwilling to lower the MDR charges for txn above 2000. If UPI-CC MDR was half of POS MDR, most merchants would promptly opt for that.
For Rupay the whole process in within India only. So even if UPI-CC MDR is kept at 0.75% for all txn above 2000, NPCI would still be earning. But they have become greedy. Net result of the greed, merchants disable UPI-CC completely, public get frustrated and then vent their anger on social media and other platform and UPI-CC becomes a non-starter.
Last edited:
Abhishek012
TF Pioneer
Ya, The POS MDR is highly negotiable, but the same POS machine also charges the same MDR for CC-UPI payments. You'll have to use your POS merchant account's UPI QR, which will have a lower MDR, similar to a credit card MDR.
For example - If you have negotiated 1% MDR for your HDFC POS, then the MDR for your CC-UPI transactions through the same POS machine's UPI QR will also be 1%.
Many people are not aware that POS machines can also generate UPI QR codes or they can request a separate printout of a UPI QR code. Some POS companies provide this UPI QR service.
Furthermore, this is a baseless statement regarding your 0.75% MDR. 🤣🤣 In India, there are people who would disable it even if you charge them 0.10% MDR.
By the way Banks also decide such MDRs, NPCI also has to consider the banks. There are meetings with banks, and SBA collaboratively decide on the MDR. NPCI doesn't act alone.
panchabhut
TF Ace
As long as UPI-CC MDR is less than POS MDR, the merchant who is already having a POS would be ok with that. My point was for such type of merchants only.
Yes, there are the second category of merchants who are unwilling to pay any MDR. But they would not also take any POS and only ask for cash or UPI. Such merchants will always disable UPI-CC.
Also, if POS QR is used for UPI payment, would be treated as UPI txn or POS txn? Will UPI txn specific benefits be available? If not, then most people would rather directly use the card.
There's a pharmacy near me who has 2 or 3 POS but doesn't allow CC on upi🤣
The biggest two culprits here are
- Travel agents
- Vehicle dealers
Please visit this thread for the probable solution: CPGRAMS - Rupay CC UPI not accepted by merchants
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