UPI Surcharge Trap: Are You Paying Extra at Checkout?

Some merchants are adding a small fee when you pay by UPI for purchases above ₹2,000. This hidden cost can even push up prices for customers paying smaller amounts. Here is what you need to know and how to push back.

Here's what happened: An IIT Bombay study found that some merchants pass UPI transaction costs on to customers as higher prices, particularly on purchases above ₹2,000.. The price inflation does not stop at high-value buyers — even shoppers making sub-₹2,000 purchases end up paying more because merchants raise overall shelf prices.. NPCI guidelines prohibit merchants from levying a surcharge on UPI payments, but ground-level compliance — especially among small traders — remains weak..

What you should do: Check your bill total before you select a payment method — if the price rises when you choose UPI, ask the merchant to honour the original price.. Report any merchant openly charging a UPI surcharge using the NPCI complaint portal or through your UPI app's dispute section.. Compare your UPI bill receipts with the displayed price tag or menu price; any difference above rounding is a red flag worth questioning..

Screenshot the displayed price before checkout. If the merchant adds a UPI fee and refuses to remove it, that screenshot is your evidence for an NPCI complaint — most merchants back down immediately when you mention it.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.