Card MDR calculator
Pick the card, type a payment amount and see the merchant discount rate (MDR) on it, the GST on that fee, and what reaches your bank.
The most RBI lets a bank charge on a debit card
Debit cards use the most the RBI lets a bank charge, so your actual fee may be lower. Credit card rates are not regulated: enter the rate in your agreement. GST is 18% of the fee.
| Payment | Debit card, RBI maximum | RuPay debit card | Credit card at 2% |
|---|---|---|---|
| ₹500 | ₹5.31 | No MDR | ₹11.80 |
| ₹2,000 | ₹21.24 | No MDR | ₹47.20 |
| ₹10,000 | ₹106.20 | No MDR | ₹236.00 |
| ₹50,000 | ₹531.00 | No MDR | ₹1,180.00 |
| ₹1,00,000 | ₹1,062.00 | No MDR | ₹2,360.00 |
| ₹2,00,000 | ₹1,180.00cap | No MDR | ₹4,720.00 |
How card MDR is worked out
The MDR is a percentage of the payment, rounded to the paisa. Some cards have a cap per payment. Your bank or gateway adds GST at 18% on the fee, and what reaches you is the payment less both.
For a ₹10,000 payment, a debit card at a larger merchant costs at most ₹90 of MDR and ₹16.20 of GST, ₹106.20 in all. A credit card at 2% costs ₹200 plus ₹36 of GST, ₹236 in all. A RuPay debit card costs nothing.
Debit cards: the RBI limits
On 6 Dec 2017 the RBI set the most a bank may charge as MDR on a debit card payment, in force from 1 Jan 2018. The limit depends on your turnover in the previous financial year and on how the card was accepted:
- Turnover up to ₹20,00,000: at most 0.4% by card machine or online, 0.3% by QR code, never more than ₹200 per payment.
- Turnover above ₹20,00,000: at most 0.9% by card machine or online, 0.8% by QR code, never more than ₹1,000 per payment.
- So a ₹2,00,000 debit card payment at a larger merchant pays at most ₹1,000, not ₹1,800.
- These are ceilings. Your bank may charge less.
RuPay debit cards: no MDR
Since 1 Jan 2020, Section 10A of the Payment and Settlement Systems Act has barred banks and payment systems from charging for payments by RuPay debit card. Notification S.O. 5067(E) of 14 Sept 2026 kept RuPay debit cards charge-free at any amount, while UPI is charge-free only up to ₹2,000. So no MDR should be taken from a RuPay debit card payment.
Credit cards: set by your agreement
The RBI does not cap credit card MDR. The rate is whatever your bank or payment gateway agreed with you. Published gateway prices for Indian credit cards are often around 2% plus GST, and American Express, Diners, international and corporate cards usually cost more. The calculator starts at 2%; change it to your own rate.
RuPay credit cards, including RuPay credit cards linked to UPI, are credit cards. The zero MDR rule for RuPay debit cards does not cover them.
Payment gateways and the RBI limit
Many payment gateways quote one flat rate for all cards, debit cards included. If your settlement report shows more than the RBI limit on a debit card payment, or any fee on a RuPay debit card payment, ask your gateway what the charge is for.
To check every payment at once, follow how to check the MDR deducted from your settlements, or let Settlement Helper read your settlement reports and flag fees that look wrong. For UPI payments, use the UPI MDR calculator.
Questions
- What is the MDR on debit cards in India?
- At most 0.9%, capped at ₹1,000 per payment, for merchants with turnover above ₹20,00,000, and at most 0.4%, capped at ₹200, for smaller merchants. QR code payments have lower limits. GST at 18% is added on the fee. RuPay debit cards carry no MDR.
- Is there MDR on RuPay debit cards?
- No. Payments by RuPay debit card are charge-free under Section 10A of the Payment and Settlement Systems Act, and notification S.O. 5067(E) of 14 Sept 2026 keeps them free at any amount.
- What is the MDR on credit cards?
- The RBI does not cap it, so it is set by your agreement with your bank or gateway. Published gateway prices for Indian credit cards are often around 2% plus GST.
- How much MDR is charged on a ₹10,000 card payment?
- By debit card at a larger merchant, at most ₹90 plus ₹16.20 of GST. By credit card at 2%, ₹200 plus ₹36 of GST. By RuPay debit card, nothing.
- Is GST charged on card MDR?
- Yes. The MDR is a service, so GST at 18% is charged on the fee. If you are registered for GST, you can usually claim it as input tax credit against your bank’s or gateway’s tax invoice.
Sources
- Reserve Bank of India, Rationalisation of MDR for debit card transactions, circular DPSS.CO.PD No.1633/02.14.003/2017-18, 6 Dec 2017
- Fox Mandal, Govt notifies charge-free payment modes under the PSS Act (notification S.O. 5067(E), 14 Sep 2026)
- Razorpay, published pricing (an example of gateway pricing, not a regulated rate)