NPCI informs Supreme Court that commercial merchants are prohibited from passing UPI transaction fees to customers

The National Payments Corporation of India informed the Supreme Court that commercial merchants are strictly prohibited from passing Unified Payments Interface transaction charges to customers. The submission clarifies platform rules regarding digital payment processing fees. Digital payment architecture relies on merchant discount rates and fee-sharing agreements among payment aggregators, banks, and networks to maintain system viability without burdening end-users.

Previously, merchants attempted to levy extra fees on digital buyers at checkout, whereas current regulatory frameworks prohibit passing transaction costs to consumers to encourage adoption. Retail businesses must update point-of-sale software and pricing structures to absorb payment processing fees internally without charging customers extra for Unified Payments Interface transactions.

Monitor Supreme Court proceedings and National Payments Corporation of India compliance directives regarding digital transaction fees. Bottom line: Review merchant pricing mechanisms immediately to avoid regulatory penalties for charging users extra.