Fee on UPI transactions: Will your payments get costlier? What consumers need to know

MUMBAI: Will the reintroduction of MDR on select UPI transactions impact you in any way? Well, a lot will depend on individual retailers, even though the government has kept consumers beyond the ambit of the framework. MDR is charged to merchants by banks and payment networks for processing digital transactions.Many of the large merchants such as big retail chains and restaurants are likely to absorb the cost in a competitive market instead of passing it on to consumers, industry executives said. Their margins, however, will get impacted and that too at a time when profitability is already under pressure on the back of considerable commodity inflation.“Large retailers can afford to bear the cost and the overall business impact for them should not be much. Credit cards always carried a charge.