Guwahati: Traders across Guwahati are worried about the new 0.4% Merchant Discount Rate on UPI merchant transactions above Rs 2,000, which is set to take effect on Oct 15.The fee, announced by the National Payments Corporation of India on Sept 15, applies to person-to-merchant UPI transactions above Rs 2,000 and is capped at Rs 300 per transaction. Person-to-person transfers, merchant payments up to Rs 2,000 and payments to eligible small merchants will remain free. The govt has said customers should not be billed separately, and banks have been advised to ensure merchants do not levy the charge as a surcharge.Businesses in sectors such as jewellery, electronics, restaurants, fuel retail and wholesale trade said the charge could add to costs at a time when margins are already under pressure.In markets such as Fancy Bazaar, Paltan Bazaar and Ganeshguri, traders said the change could eat into thin margins. Jewellers, garment sellers and electronics dealers, who often process UPI payments above Rs 2,000, said they may consider small price adjustments, though many said they were waiting for clearer instructions from banks and trade bodies.“Customers have become accustomed to paying through UPI because it is quick and convenient. We cannot suddenly discourage them from using it. But absorbing an additional transaction cost on every large bill will affect our margins,” said the owner of a jewellery brand, who did not want to be named.Restaurant operators said the impact would depend on how the cost is absorbed. “A family bill can easily cross Rs 2,000. If UPI remains the preferred payment mode, the additional cost will ultimately have to be absorbed by the business unless the payment ecosystem changes,” restaurant owner Akhil Kalita said.Wholesalers said the effect could be greater for businesses with high-value transactions. “Wholesale payments are much larger than Rs 2,000. Even though the percentage looks small, the cumulative cost over hundreds of transactions can become significant,” wholesale trader Ajay Paul said.Small retailers said the exemption for eligible merchants with monthly UPI receipts below Rs 1 lakh could protect many neighbourhood businesses, though some said customers remained confused about whether they would have to pay for UPI.With the festive season under way, traders said the timing was difficult. For now, many businesses are waiting before revising prices, but expect some costs to eventually reach consumers.
