How to check the MDR deducted from your settlements
Your gateway pays you less than you sold. This is how to see exactly what it kept on each payment, and whether that matches the rule.
Why a settlement is less than your sales
A gateway such as Razorpay, PhonePe or Paytm collects your payments, keeps its fee and the GST on it, deducts refunds and chargebacks, then settles the rest into your bank in batches. So one bank credit can cover hundreds of payments, and the fees never show up as a separate line in your bank statement.
Check it step by step
- Download the settlement report for the month from your gateway dashboard, usually under Settlements or Reports, as CSV or Excel. Pick the report that lists each payment, not only the batch totals.
- Find the columns for the payment amount, the fee, the tax (GST) on the fee, and the amount settled. For each payment, the amount less the fee and the tax should equal what was settled.
- Work out what each UPI payment should pay: nothing at ₹2,000 or less, 0.4% above it, never more than ₹300. The UPI MDR calculator does one payment at a time. Your gateway contract may add its own charges, so compare against that too.
- Add up the settled amounts in each batch and match the total to a credit in your bank statement, using the settlement ID or UTR and the date.
- Look at refunds and chargebacks. Check whether the fee on the original payment was returned or kept.
- Check that the GST in the report matches the gateway’s monthly tax invoice. GST is charged at 18% on the fee.
What to look for
- An MDR on a payment of ₹2,000 or less, or on payments made before the MDR starts (after Diwali 2026, on a date NPCI has not yet notified).
- A fee above ₹300 on one UPI payment, or above 0.4% below the cap.
- A batch whose settled total does not match any bank credit.
- Fees kept on refunded payments.
- GST in the reports that is not on any invoice.
Do it in minutes instead
Doing this by hand across several gateways takes hours each month. Settlement Helper reads settlement exports from Razorpay, PhonePe and Paytm and statements from HDFC, ICICI, SBI and Axis on your device, works out the MDR on every payment, matches batches to bank credits, and lists fees kept on refunds. Your files are never uploaded. See plans and prices.
Questions
- Where do I find the MDR in my settlement report?
- Most gateway reports have a fee column and a tax column for each payment. The fee is the MDR or gateway charge, and the tax is the GST on it.
- Why does my bank statement show one credit for many payments?
- Gateways settle in batches. One credit covers every payment in that batch, less fees, GST, refunds and chargebacks. Match it using the settlement ID or UTR.
- How do I know if I was charged the right MDR?
- For each UPI payment, compare the fee with 0.4% of the amount, capped at ₹300, and nothing at ₹2,000 or less. Your gateway contract may add its own charges.
- Do I get the fee back when I refund a payment?
- It depends on your gateway. Many keep the fee on the original payment. Check refunds in your settlement report.