Payment gateways still charge for UPI, RuPay

Most payment gateway service providers are continuing to charge merchants a fee for enabling and using the Unified Payments Interface (UPI) and RuPay cards despite a government notification making it illegal to do so. According to banking sources, the Central Board of Direct Taxes has directed query to payment service providers on their position with regard to charges for UPI and RuPay card transactions. This comes as a follow-up to the board’s order in August 2020 asking banks to refund any fees collected for payments using RuPay or UPI. In December 2019, the government had issued a notification designating RuPay debit cards and the UPI as prescribed electronic modes of payments, against which banks and service providers cannot impose any charges.