Quick wins for a faster PC:
Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →For a small business in India, the cheapest way to collect payment depends on how customers pay, how you accept it and your merchant category. A direct UPI QR can have no MDR in specified cases, but an online gateway or payment link may still charge a platform fee. Cards and net banking have no single market-wide rate: check the offer from your acquirer or gateway and compare the full cost and workflow.
The latest official fee position covered here is the Ministry of Finance’s 15 September 2026 announcement. Because it may be subject to implementation details or later changes, check for a subsequent official circular before relying on it.
What changed in the UPI fee position?
The Ministry of Finance said on 15 September 2026 that person-to-person UPI remains free and specified zero-MDR treatment for merchant payments up to ₹2,000. It also said eligible small merchants receiving up to ₹1 lakh per month through UPI QR under the P2PM category continue to have zero MDR on all transactions. These protections have specific conditions; they do not mean every merchant UPI transaction is always free of MDR. Read the government announcement.
For specified P2M transactions above ₹2,000, the announcement sets MDR at 0.4%, capped at ₹300 per transaction for transactions of ₹75,000 and above. It names a flat ₹5 MDR for transactions above ₹2,000 in listed essential sectors, including railways, telecom, insurance, fuel and agricultural inputs, and 0.02%, capped at ₹300, for listed capital-market transactions. These are the categories and terms stated in the announcement; confirm that no later official circular or implementation change applies to your business.
#1 Best Overall
- Use the, easy-to-use, and customizable POS to get started.
- Accept contactless payments, chip cards, Apple Pay, and Google Pay from anywhere, with improved connectivity, extended battery life, and enhanced security. Pay one low rate for every tap or dip.
- No long-term commitments or contracts, no monthly fees- and with offline payments, keep taking payments for up to 24 hours.
- Safely and securely accepts payments anywhere. Plus, get data security, 24/7 fraud prevention, and payment-dispute management at no extra cost.
- Use the, easy-to-use, and customizable POS to get started.
The release says MDR is part of the merchant payment ecosystem, not a charge on customers, and says banks have been advised to ensure merchants do not pass it on. It estimates that approximately 96% of P2M transactions remain unaffected and about 4% of merchant transactions attract MDR. Those percentages are government-published estimates, not independent measurements.
How the methods compare
| Method | Where it fits | Costs to check | Trade-offs |
|---|---|---|---|
| UPI merchant QR | In-person counter sales, especially where customers already use UPI | Your merchant category and QR classification, transaction amount, monthly QR receipts, and any service-provider fee if you accept through an aggregator | Can be a low-friction counter option, but customers must use UPI and you need to display your own merchant QR clearly. |
| Cards | Online checkout or in-person acceptance for customers who want to use credit, debit or card rewards | Acquirer or gateway rate by card type, taxes, terminal or service fees, refunds and disputes, and any special card category | Offers customers a credit or debit option; the merchant rate depends on the provider and contract. |
| Net banking | Online checkout for customers who prefer a bank login or transfer flow | Gateway rate, supported banks, settlement terms and refund terms | Adds an alternative at checkout, but the customer flow depends on their bank and the gateway integration. |
| Payment link | Remote orders, invoices or requests sent through messaging or email, including when you do not have a full website checkout | Provider fee for the payment method used, GST, settlement, refunds and disputes, and feature limits | Easy to share and may offer several ways to pay, but the customer still has to complete the provider’s checkout. |
Why zero MDR may not mean zero UPI cost
MDR is only one possible cost. A payment aggregator or gateway can charge a separate platform or technology fee for processing an online payment, even when the underlying payment route has zero MDR. For example, Razorpay’s pricing page, accessed 4 October 2026, lists a standard 2% transaction fee plus applicable GST across cards, UPI, wallets and net banking. It says its standard plan has no setup fee or annual maintenance charge, and separately notes that standard bank-to-bank UPI and RuPay debit have zero MDR while its gateway platform or technology fee still applies. See Razorpay’s published pricing.
Rank #2
- With Square Terminal, you can ring up sales, accept payments, and print receipts, all with one device. Use it at the counter or ring up customers anywhere in your store.
- Accept all major credit and debit cards and pay one low rate with no hidden fees and no long-term contracts.
- Process chip cards in just two seconds.
- Get your money as soon as the next business day.
- Use it cordlessly with the built-in battery, designed to last all day.
That is one provider’s published standard pricing, not an industry average or a guaranteed rate for every merchant. Razorpay says settlement is typically T+1 or instant, with separate pricing for optional services such as instant settlement. Merchant-specific or promotional terms may differ, so use your current offer and contract rather than assuming another provider charges the same.
When a payment link is useful
A payment link is a way to request and collect payment remotely, not a separate payment rail. Razorpay says its links can be shared through WhatsApp, email and SMS, and its payment collection suite supports cards, net banking, UPI and wallets. That makes links useful for taking payment for an invoice or remote order without sending the customer through a conventional website checkout. See Razorpay’s payment-link description.
Crashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minutePC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Rank #3
- Get your money as soon as the next business day.
- Get set up quickly with no long-term commitments. Download the Square Point of Sale app for free, create an account, and start taking payments anywhere.
- Run your business all in one place with the free Square Point of Sale app. Track your sales, manage inventory, accept tips, send receipts digitally, and more.
- Works with Apple devices with a Lightning connector.
Because a link can route a customer to different payment methods, check the fee for the method the customer actually chooses, as well as settlement, refund and dispute terms. Features and rates depend on the provider and can change.
Compare the total cost and operating fit
When comparing providers or acceptance routes, ask for the full terms that apply to your business rather than relying on a headline rate. Include:
Rank #4
- Pay one transparent rate per swipe for Visa, Mastercard, Discover and American Express.
- Works in conjunction with most downloadable Square point-of-sale apps on your device. Customers can pay, tip and sign directly on your device. Track payments in cash, gift cards and more. Also lets you send receipts via e-mail or text message, makes it easy to apply discounts, keeps a data and sales history log and more.
- Accepts magstripe credit card payments, including those from Visa, Mastercard, Discover and American Express (fees apply).
- App sends deposits to your bank account within 1 to 2 business days, or enjoy instant deposits (fees apply).
- Total fee after GST, including percentage charges and any fixed transaction fees.
- Settlement timing and the cost of optional faster settlement.
- Supported payment methods, card types and banks.
- Refund, dispute and chargeback charges or processes.
- Reconciliation and reporting features for your sales workflow.
- Evidence for payment success and service uptime; do not treat a vendor’s own promotional claim as an independent comparison.
- Customer friction and operational fit: a counter QR serves a different workflow from a remote invoice link.
For a physical shop considering UPI, a QR standee can display the merchant’s existing QR at the counter. It is only a display accessory: it does not enroll the business in UPI or provide card acceptance, gateway processing or accounting.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Do not use older UPI fee statements as the whole answer
An RBI report records the historical rule that, from 1 January 2020, MDR was not to be collected on UPI and RuPay debit transactions; it also notes that savings-account holders were not to be charged for online-initiated NEFT transfers. That history does not account for the specified P2M MDR described in the government’s 15 September 2026 announcement. Consult the RBI annual report publication.
Quick Recap
Best Value
- Accept all major credit and debit cards and pay one low rate
- No hidden fees and no long-term contracts
- Mobile card reader that accepts payments anywhere & anytime
- Use the free SumUp App on your smartphone or tablet to start accepting transactions
- Simply pay 2.6% +10 per in-person transaction
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
