If you also use prepaid payment instruments (PPIs) such as online wallets or pre-loaded gift cards for easy payments, you may have to pay extra charges for UPI payments made through them from April 1.
National Payments Corporation of India (NPCI) has introduced an interchange charge of up to 1.1 percent on merchant UPI transactions done using prepaid payment instruments from April 1. It is being levied on UPI payments above Rs 2,000 made to online merchants, large merchants, and small merchants.
In such a situation, many questions arise that what is this interchange charge and whether it is going to be applicable in all types of online payments or whether it is going to affect a particular segment. Today we have come up with answers to questions related to this.
What is an interchange fee?
The interchange fee is a fee paid by payment service providers to wallet issuers such as banks. These wallets are mainly online payment enablers like Paytm, PhonePe, and Google Pay. Thus these fees are levied to cover the cost of accepting, processing, and authorizing transactions.
Will this fee apply to every UPI payment?
This Shukla will be levied in merchant UPI transactions as mentioned earlier. This means that person-to-person transactions or person-to-merchant transactions between the bank and the prepaid wallet will not be levied. This means that you can use UPI without any worries and for this, you will not have to pay any additional charges.
What will be the charging fee?
For UPI transactions above Rs 2,000 done through PPIs, an interchange fee of 1.1 percent is levied, which the issuer like Paytm or Google Pay has to pay to the bank as a wallet loading fee. Categories like fuel, education, agriculture, and utility payments have an interchange charge of 0.5-0.7 percent. At the same time, for food shops, specialized retail shops, and contractors, this fee is a maximum of 1.1.
What will be the effect on the general public?
The interchange fee is paid by the merchants to the wallet or card issuer. In such a situation, it will not affect small traders and shopkeepers who pay less than 2,000. However, in some cases, it is applicable to Wallet-on-UPI, depending on the capability and willingness of the payment companies.
After the success of the Chandrayaan-3 mission, the whole world is eagerly waiting for the inform
Congress MP and Leader of Opposition in Lok Sabha Rahul Gandhi recorded his statement in the defa
The story of Akshay Kumar starrer film 'Kesari 2' is based on the painful incident of the Jallian
For the last three days, the situation has been miserable due to continuous rain in many district
A big dream project of Bihar Chief Minister Nitish Kumar was completed on Gandhi Jayanti. Caste c
Act Of Worship: Hearing in Supreme Court today on Places of Worship Act, Owaisi has filed a petition
The Supreme Court will hear on Thursday the petition of AIMIM chief Asaduddin Owaisi seeking impl
A political battle has once again erupted between the Congress and the BJP over the GST. Senior C
Rahul Dravid, who led the Indian team to win the T20 World Cup under his coaching, is spending qu
Gujarat Titans have announced the replacement of Kane Williamson who has been ruled out of IPL 20
Shahrukh Khan has proved through his two films 'Pathan' and 'Jawaan' released this year, why he i
