National Payments Corporation of India and banks have hamerd out the contours of pricing of credit card transactionson Rupay- UPI. Merchant Discount Rate (MDR) which is the charge paid by the merchands to the card issuing bank for card transactions of 2 percent. Of this 1.5 percent will go tp the issuing bank, rest shared with RuPay and acquiring entity.
The scheme is to be forwarded to the RBI and RuPay- UPI credit card transactions will start by mid-september. Fixing of MDR on transactions has been asticking point after RBI announced linking RuPay credit cards to UPI. Unlike debit card transactions linke in UPI in which there is no MDR for ticket sizes upto ₹2000.
At outlets with an annual turnover of upto ₹20 lakh, transactions will be free, with the ticket size capped at ₹ 2000- ₹5000 and no limits on the number of daily transactions.
Loss of MDR at smaller outlets to be made up for by annual charges on credit cards, and earnings on rollovers after 45-day interest free window.
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