What are the charges for using UPI for transactions?
Curious about Unified Payments Interface
The charges for using UPI for transactions can vary depending on the bank or UPI service provider you are using. In general, UPI transactions are categorized into two types:
1. PeertoPeer (P2P) transactions: These are persontoperson transfers where you send money to another individual's UPI ID or bank account. Many banks and UPI apps offer P2P transactions free of charge, meaning there are no transaction fees.
2. Merchant transactions: These are transactions where you make payments to merchants or for services such as bill payments, online shopping, or utility payments. Some UPI service providers may charge a nominal fee for merchant transactions, often a percentage of the transaction amount. However, many merchants and service providers absorb these charges and offer UPI payments without any additional fees to the customers.
It's important to check with your bank or UPI service provider regarding the specific charges, if any, applicable to your transactions. The charges and fee structure may differ from one provider to another. Additionally, some banks may have specific offers or promotions that waive transaction fees for a certain period or for specific types of transactions.