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SUBSCRIBE ON YOUTUBEWhat Are PhonePe Merchant Charges?
If you run a shop or a small business, you probably use a PhonePe QR code to collect daily customer payments. Many shop owners ask a crucial question: Does PhonePe take a cut from the money I receive?
The short answer: it depends entirely on the payment method and the optional hardware or software features you choose to activate.
Are Standard UPI QR Payments Free?
Yes. Standard bank-to-bank UPI transfers made by scanning your business QR code carry zero payment processing fees under India's current UPI merchant framework.
For example, if a customer buys groceries worth ₹500 and pays via standard UPI, you receive the full ₹500 directly in your linked bank account. No deduction takes place on normal transactions.
Services That Come with Additional Costs
While basic UPI is free, other merchant services involve separate fees:
- Smart Speaker Rentals: The voice box that announces payments aloud when a customer scans your code usually involves a monthly rental or subscription fee (such as ₹125/month depending on your plan).
- Online Payment Gateways: If you collect payments through a website or an e-commerce mobile app, payment gateway processing fees apply based on payment mode (credit cards, debit cards, or net banking).
How to Check Your Account Charges
To avoid unexpected fees, check your active plans anytime:
- Open your PhonePe Business App.
- Navigate to your Service Details or subscription settings.
- Review your smart speaker rental plans and gateway terms.
- Contact PhonePe merchant support inside the app if any charge looks unfamiliar.
