eWallet platform Paytm 1% MDR Fee on payment via its platform – Nothing is free, eWallet company Paytm has announced that it will charge a 1% MDR fee (Merchant Discount Rate) on merchant payments received through wallet. The business decision will impact on the pocket of million of the merchants in the current situation. Due to COVID-19 pandemic the volume of digital payments has already been reduced.
Paytm has announced the fees on their business blog, it will charge a 1% fee including 18% GST on receiving payment from wallets beginning May 4, 2020.
Further to clarify on the 1% MDR or merchant discount rate, it said that there will not be any charges for merchants accepting payments directly into their bank accounts via UPI.
Earlier, there were no MDR on the payment received via Paytm wallet for less than Rs 20,000. There were 2% MDR on all the transactions above Rs 20,000. Paytm has also clarified that the 1^ MDR is being charged to the merchants to cover the fees that banks charge to them to load the wallet.
Paytm wallet at 1% fee from 4th May 2020.
|Payment Mode||Payment Acceptance Fee||Monthly Acceptance Limit|
|Wallet||1% inclusive of GST||Existing limits|