UPI payment After the government's new framework regarding merchant payments, there is increased concern among merchants about who will pay the possible charges on merchant payments. Will the shopkeepers bear this charge themselves or will they charge additional amount from the customers? Read team talked to different businessmen of Noida on this issue. During the conversation, many traders said that if the burden of charges comes on their pockets, then their already low margin business will be affected. At the same time, some traders are asking customers to charge extra.
The government has clarified that person to person i.e. P2P (Person to Person) UPI payment will be completely free. This means that common people will not have to pay any kind of charge for sending money to each other through UPI. At the same time, there is talk of charging for transactions of more than Rs 2,000 on merchant UPI payments. Due to this, a question is being raised among the traders whether it will affect the shopkeepers or the customers.
Shopkeepers put up posters of not accepting UPI payment
During conversation with businessmen in Noida, it came to light that some shopkeepers have even put up posters at their shops for not accepting UPI payments. Vikas Jain, a businessman who deals in hardware and building materials, expressed his displeasure over this decision. He said that there is already less work in the market and due to increase in online business, shopkeepers are facing problems.
“By imposing charges the government has worked to break the traders”
Vikas Jain said, “Online work has increased considerably. The customer does not want to go out to the market. He gets the goods delivered to his home with one click from his mobile. In such a situation, by imposing such charges, the government has worked to break the traders. This is a very negative decision of the government. We have already put up a poster that we will not take UPI payment. If someone makes UPI payment, he will have to pay 2% extra. Why would we pay the charge from our own pocket? Anyway, there is no work in the market.”
Karan Grover and Vikas Jain
“Loss for both customer and shopkeeper”
Businessman Karan Grover said that the share of UPI payment in his business is around 50 to 70 percent. He says that if the burden of additional charges falls on traders or customers, then both will suffer losses. He said that in the era of increasing online shopping, customers may prefer online shopping instead of coming to the market due to additional charges.
Karan Grover said, currently our UPI payment remains between 50 to 70%, so if any additional charges are imposed on us or on the customer, then both the customer and the shopkeeper suffer loss. Most of the customers try to purchase anything online. Now in such a situation, if there will be more charges, then why would the customer come to the market, he will buy online only. To what extent will the trader make adjustments? Our own margin remains at 5%. We will pay tax to the government again, we will pay more charges from our own margin.
“If the customer will not pay, we will have to pay from our own pocket.”
Karan Grover further said, we will try to get the customers to pay cash first because we also have to make ends meet and pay children's fees. If the customer does not pay, we will have to pay from our own pocket because we cannot leave the work. We would like the cash flow to increase. If the customer does not want to give it to us, then it will be on our pocket only.
“The government's decision is very wrong”
Arif, a businessman associated with interior business, also expressed his displeasure over the charges on merchant UPI payments. He said that nowadays most of the payments in business are done online and cash transactions have remained very less. In such a situation, additional charges can increase problems for traders. Arif said, this decision of the government is very wrong. Generally what happens is that when we work, we do it all online, no one gives us cash. If anyone buys any item above Rs 2,000, we are already paying tax on it. Now if this new charge is imposed, we will have to pay more. According to me, this is completely wrong for the shopkeepers.
Arif further said, we will try to take extra charge from the customers, but if the customer does not pay then we will have to pay from our own pocket. This will affect the customers also. Similarly, business is slow now and the festival is about to come. In the meantime, this kind of decision will make a lot of difference to the business, because nowadays everyone makes online payments. No one gives cash. Only 5% people make cash payment, otherwise 90 to 95% people make online payment.
It is clear from the conversations with traders in Noida that there is concern among shopkeepers about the possible additional cost on UPI payment. Some traders are preparing to take additional amount from customers, while some say that if the customer is not ready to pay extra, then they may have to pay the charge from their own pocket. In such a situation, traders are confused about how much impact the new charge will have on their business and customers' purchases.