UPI (Unified Payments Interface) is a real-time digital payment system developed by the National Payments Corporation of India (NPCI).
It allows users to send and receive money instantly by linking multiple bank accounts to their mobile phones.
RuPay credit cards, India’s own credit card network, offer secure and fast payments both online and offline.
Transaction Fees on UPI
Most UPI transactions are completely free for users. However, for UPI payments using RuPay credit cards, transactions up to ₹2,000 are free.
Payments above ₹2,000 may include a small fee, which is typically borne by the merchant, not the customer.
This fee helps cover infrastructure costs and ensures smooth UPI operations.
Impact on Merchants and Customers
Since April 1, 2023, NPCI requires merchants to charge a fee of up to 1.1% on UPI credit card payments above ₹2,000.
Customers do not pay this fee. This rule helps maintain a balanced and sustainable digital payment ecosystem, keeping transactions efficient and secure for everyone.
Benefits of RuPay Credit Cards
RuPay has significantly boosted digital payments in India. Using a RuPay credit card for UPI is fast, easy, and secure. Many cards also offer cashback, discounts, and other rewards.
RuPay cards make it simple for small merchants to adopt UPI, promoting the growth of digital transactions across the country.
In short: UPI transactions with RuPay credit cards are virtually free, especially for amounts up to ₹2,000.
Any small fee for higher transactions is paid by the merchant, not the customer. This system supports secure, convenient, and widely accessible digital payments in India.
