UPI Payment Fee Update: What uEngage Partners Need to Know
UPI payments are part of everyday restaurant operations. When payment charges change, the first question is simple: what does this mean for your business?
According to uEngage’s partner notice, from 15 October 2026, an additional 0.40% Merchant Discount Rate (MDR) will apply to eligible person-to-merchant UPI payments above 2,000 on uEngage-powered ordering channels.
The additional MDR is capped at 300 per transaction. Payments of 2,000 or less are not affected by this update, and your uEngage subscription fee remains unchanged.
Here’s how the update works.
UPI Payment Fee Update at a Glance
Detail | What it means |
|---|---|
Effective date | 15 October 2026 |
Additional MDR | 0.40% on eligible UPI payments |
Payment threshold | Applies only above 2,000 |
Maximum additional MDR | 300 per transaction |
Existing platform fee | Continues as per your agreement |
uEngage subscription fee | Unchanged |
What Is MDR?
Merchant Discount Rate, or MDR, is a payment-processing charge applied to eligible merchant transactions.
The uEngage partner notice describes this additional MDR as a payment-processing charge handled by the payment gateway. It is separate from your uEngage subscription fee and is added to your existing platform fee where applicable.
Which UPI Payments Are Affected?
The notice covers eligible person-to-merchant UPI payments above 2,000 on uEngage-powered ordering channels.
For an eligible payment:
2,000 or less: No additional MDR under this update.
Above 2,000: An additional 0.40% MDR applies, capped at 300 per transaction.
A payment of exactly 2,000 does not attract this additional MDR. Your existing platform fee continues to apply according to your agreement.
For eligibility specific to your payment setup, contact your uEngage Account Success representative.
How Is the Additional Charge Calculated?
For eligible UPI payments above 2,000, the additional MDR is calculated as:
Payment amount × 0.40%, up to a maximum of ?300
The percentage applies to the full eligible payment amount, not just the amount exceeding 2,000.
For example, on an eligible 2,500 UPI payment:
2,500 × 0.40% = 10 additional MDR
Here are a few examples:
Eligible UPI payment amount | Additional MDR under this update |
|---|---|
1,000 | 0 |
2,000 | 0 |
2,500 | 10 |
5,000 | 20 |
10,000 | 40 |
75,000 | 300 |
1,00,000 | 300 |
The ?300 cap is reached at a payment amount of ?75,000. Above that amount, the additional MDR remains capped at ?300 per transaction.
The cap applies only to the MDR component. Your existing platform fee is separate.
These examples exclude taxes and show only the additional MDR described in the notice.
What Happens to Your Existing Platform Fee?
Your platform fee continues to follow your agreement with uEngage. The additional MDR is applied alongside it on eligible payments.
Example: A Restaurant With a 2% Platform Fee
For an eligible ?5,000 UPI payment:
Fee component | Amount |
|---|---|
Existing platform fee at 2% | 100 |
Additional MDR at 0.40% | 20 |
Combined fee, excluding taxes | 120 |
In this example, the combined fee is equivalent to 2.40%.
However, 2.40% is not a universal rate for every uEngage partner. Your platform fee depends on your agreement. Once the MDR cap is reached, the combined fee becomes your agreed platform fee plus ?300.
What Does This Mean for Your Restaurant?
The impact depends on the number and value of your eligible UPI payments above 2,000.
If all your UPI payments are 2,000 or less, this update adds no MDR to those payments. If you receive eligible payments above 2,000, those transactions will attract the additional charge.
An average order value below 2,000 does not automatically mean there is no impact. Individual payments above the threshold may still qualify.
To understand the effect on your business:
Review individual UPI payment amounts. Identify eligible transactions above 2,000.
Estimate the additional MDR. Apply 0.40% to each eligible payment, subject to the ?300 cap.
Review your settlement records. Speak with Account Success if you need help understanding the charges.
This gives you a clearer estimate than looking at average order value alone.
Your uEngage Subscription Fee Remains Unchanged
This update does not increase your uEngage subscription fee.
Your existing platform fee remains governed by your agreement, while the additional MDR applies to eligible UPI transactions described in the partner notice. Rates are subject to subsequent official revisions.
