Online Payment Charge – A new rule regarding UPI may come into force from tomorrow. If this happens, then interchange charge or prepaid payment instrument fee will be applicable on merchant transactions above Rs 2000… In such a situation, let us know in the news below that from tomorrow, who will have to pay online payment charges.
For the last two days, the news of deducting extra charge on transactions above Rs 2000 through Unified Payment Interface (UPI) is in headlines. This extra charge is being called Prepaid Payment Instrument i.e. PPI Charge, which will be levied at the rate of 1.1 per cent on merchant transactions above Rs 2,000.
The biggest confusion about this was whether the common users would fill it? On this, the National Payment Corporation of India (NPCI) cleared the picture by issuing a press release. Let’s understand the whole issue of this PPI charge through questions and answers…
What will change in UPI from April 1?
NPCI has said in the circular that from April 1, 2023, it has been recommended to implement PPI fees on merchant transactions done through UPI. Under this, PPI charge will be levied on merchant transactions above Rs.2000.
Will this PPI charge be paid by the common customer?
No, as per NPCI, recently PPI wallets have been allowed to be a part of the interoperable UPI ecosystem. This will not put any additional burden on the common customer, rather it is a matter between the merchant and the bank. Means it will be recovered from the merchant.
What is PPI after all?
PPI is a type of digital wallet, which allows the user to store his money. Companies like Paytm and PhonePe provide the option of PPI.
What will be the PPI charge or interchange charge?
PPI charge or interchange charge is actually a fee paid by payment service companies to wallet issuers such as banks. It is levied to cover the cost of accepting, processing and authorizing transactions. It is proposed to be implemented at the rate of 1.1% on merchant transactions.
Will there be a charge for sending money from a bank account?
NPCI has made it clear that there will be no charge for account-to-account money transfer, that is, you can transfer money as much as you want. Interchange charge will be deducted on sending money from wallet to account. Which will be deducted from the amount of the merchant.
