Sending Money Online Without Charges, Not Anymore

29 Mar, 2023 11:12 IST|Sakshi Post

New Delhi: Are you using online payment services like Google Pay, PhonePe etc? So far, the online transactions were free but not anymore. The National Payments Corporation of India (NPCI) has suggested levying interchange fees on merchant transactions made through Unified Payments Interface (UPI) using prepaid payments like wallet or cards. 

UPI transactions of over Rs 2,000 made through Prepaid Payment Instruments (PPIs) will likely attract an interchange fee of up to 1.1 per cent. However, fuel service stations will be eligible for lower interchange fees on UPI.

The NPCI has proposed the interchange fee to help the banks and payment service providers, who have been struggling with the high cost of UPI transactions. According to the NPCI circular, the stated pricing will be reviewed on or before September 30, 2023.

The policy of levying charges on online transactions will come into effect from April 1, 2023. The charges will be applicable on transactions made to online merchants, large merchants and small offline merchants. However, the person-to-person and person-to-merchant transactions between bank and prepaid wallet will not be affected due to this change.

The individual users who make personal transactions using UPI will not be charged any additional fees. The interchange fee on UPI transactions will only be applicable to merchants who accept payments over Rs 2,000 using Prepaid Payment Instruments (PPIs).

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