A circular was issued by NPCI regarding the charging of interchange fees for specific transactions carried out via UPI.Will onlinepayments become costlier?,npci online payment, npci customer care number,methods,platforms,
The National Payments Corporation of India (NPCI) has proposed the imposition of interchange fees on merchant transactions carried out via Unified Payments Interface (UPI) using prepaid instruments such as wallets or cards. This move is expected to increase the cost of online payments, as per a notice issued by NPCI. The circular, as reported by Live Mint, states that a fee of up to 1.1% on ‘Prepaid Payment Instrument’ (PPI) transactions exceeding ₹20,000 will be charged.
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The purpose of an interchange fee is generally to compensate for the expenses related to accepting, processing, and authorizing a transaction. This latest regulation will be enforced from April and is relevant to transactions carried out by online merchants, as well as large and small offline merchants. Nevertheless, the surcharge will not apply to person-to-person and person-to-merchant transactions made between banks and prepaid wallets.Will onlinepayments become costlier?,npci online payment, npci customer care number,methods,platforms,
Some specific merchants, like fuel service stations, will be eligible for a reduced interchange fee of 0.5% on UPI payments. The NPCI will reassess the pricing on September 30th.
Will it make online transactions costlier?
Merchants will pay the interchange fees to wallets, which will be applicable for transactions above ₹2,000. As a result, small merchants and shopkeepers are unlikely to be affected. However, customers may end up bearing the surcharge imposed on merchants.
Since the government considers UPI to be a public good, it is improbable that there will be any transaction fees for bank-to-bank UPI transactions or merchant transactions. However, if wallet issuers pass on the interchange fees to customers, loading wallets with over ₹2,000 for UPI transactions may become more expensive.