Who Bears the UPI Credit Card Reward Cost?

[blackshadow]

When making payments via QR code using credit cards, if a 1.5% reward is provided by the credit card company, then who bears that 1.5% – the shopkeeper, the credit card company, or Rupay?

 

[Abhishek s Jain]

Hey, so over here , every time you make the transaction through credit card. A small fee that merchant has to pay to credit card company that is called MDR .
Normally, these MDR are ranging from 1.5 to 2.5 percent. Depending on the service provider like rupay, visa and mastercard.
So, whatever charges they comes from merchant. A small amount of reward they pass on to the customer for encouraging to spend more.
So , over here most Shop kipper has to pay for our rewards.
Now, you will ask me why, Shop kipper will bare the charges?
If you know the answer for these question then please let me know. I will answer it

 

[Nihal Singh]

When making payments via QR codes using credit cards and receiving a 1.5% reward from the credit card company, the cost of that reward is typically covered by the credit card company itself. This reward is a promotional incentive offered by the credit card company to encourage cardholders to use their credit cards for transactions. The shopkeeper receives the full payment amount for the transaction, and the credit card company absorbs the cost of the reward as part of their marketing and customer retention strategy. Rupay is a payment network like Visa or Mastercard, and it doesn't directly provide these rewards; they are offered by individual credit card issuers.

 

[blackshadow]

This is the case when we pay using POS machine
But it is same for payment from QR code also?

 

[arjungoyal12]

When making payments via QR codes using credit cards and receiving a 1.5% reward from the credit card company, the cost of that reward is typically covered by the credit card company itself. This reward is a promotional incentive offered by the credit card company to encourage cardholders to use their credit cards for transactions. The shopkeeper receives the full payment amount for the transaction, and the credit card company absorbs the cost of the reward as part of their marketing and customer retention strategy. Rupay is a payment network like Visa or Mastercard, and it doesn't directly provide these rewards; they are offered by individual credit card issuers.

Nice observation

 

[arjungoyal12]

This is the case when we pay using POS machine
But it is same for payment from QR code also?

I think it might be the same

 

[Utkarsh Sharma]

Merchants bear the reward costs.