RuPay Credit Card For UPI Payment By Scanning QR Code Will Be Launched Very Soon
Merchant Discount Rate (MDR) is the charge paid by the merchant to the bank for processing the payment. This can be up to 2-3 percent of the transaction.
In the meeting of the Reserve Bank of India's Monetary Policy Committee in June, it was decided that now UPI transactions can also be done with the help of credit cards. Work is progressing rapidly in this direction. National Payment Corporation of India (NPCI) is in talks with several banks to allow transactions by scanning QR codes with the help of RuPay credit cards. To give relief to small merchants, they are also being considered for exemption in the MDR charge.
Merchant Discount Rate (MDR) is the charge paid by the merchant to the bank for processing the payment. This can be up to 2-3 percent of the transaction. The bank charges up to a 2-3 percent merchant discount rate on credit card transactions from large shopkeepers. NPCI is considering giving relief to small shopkeepers from this charge.
Focus on different types of transactions
Dilip Asbe, Managing Director and CEO of NPCI said at the event organized by Bank of Baroda, “We are focusing on crores of different types of transactions that happen daily. Card tokenization for contactless transactions is underway. Apart from this, the facility of parking is being considered to be added to the toll collection FASTag card. Apart from this, the idea of including transactions at petrol pumps is also going on.
Many banks have shown interest
Last week, the NPCI CEO said that in the next two months, with the help of RuPay credit cards, UPI payments will also be able to be done. Many banks have shown interest in this. NPCI will first make a guideline in this regard, then it will be sent to the Reserve Bank for approval. SBI Cards, Bank of Baroda Cards, Axis Bank, and Union Bank of India have shown their interest.
MDR charges up to 2-3% on credit cards
There are currently 2-3 million merchants who receive credit card payments. There are 50 million who receive payments with the help of UPI. Talking about the charges, there is no MDR charge for making a payment with the help of UPI. Talking about card payments, MDR charges up to 0.90 percent of the transaction value are levied even on debit card payments. This is its maximum capping. At the same time, a merchant discount rate of up to 2-3 percent is charged for transactions with credit cards. Well, it's not capping.
What is the MDR charge on the RuPay card?
Talking about RuPay cards, the merchant discount rate is not charged on RuPay debit cards. On the other hand, paying with a RuPay credit card has to pay less MDR charge as compared to Visa or Mastercard. Talk about UPI payment, it is connected to your savings bank account. If you have funds in your account, then transactions are possible with the help of UPI. UPI transactions cannot be done if there is no balance. By allowing credit cards to be linked with UPI, customers will have more payment options.
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