In-store payments · 2 October 2026
POS Machine Charges in India: MDR, Rental and What to Check
The cost of a POS machine in India usually has two parts: a fee for the device (one-time price or monthly rental) and a merchant discount rate (MDR), a small percentage charged on card payments. UPI and RuPay debit card payments carry zero MDR under government rules, while credit cards typically cost more.
The main POS charges
- Device fee: a one-time purchase price, a monthly rental, or sometimes free with minimum usage.
- MDR: a percentage of each card transaction, which differs by card type.
- Setup or onboarding fee, charged by some providers.
- Fees for paper rolls, repairs or replacement.
- Charges for faster settlement, if offered.
Zero MDR on UPI and RuPay
Since January 2020, government rules set zero MDR for merchant payments made with UPI and RuPay debit cards. That makes accepting these methods cheaper than credit cards. Many shops use a POS machine for cards alongside a UPI QR code and soundbox.
How to compare POS machine offers
- Ask for the full price list, not just the device price.
- Check MDR for debit cards, credit cards and international cards separately.
- Check settlement time: next day, same day or instant.
- Make sure the device accepts tap-to-pay, chip cards, UPI QR and wallets.
- Look at battery life, connectivity (SIM and Wi-Fi) and printer quality.
- Ask about service and replacement if the device fails.
Frequently asked questions
What is MDR on a POS machine?
MDR (merchant discount rate) is the percentage of each card payment that the merchant pays the provider for processing it.
Is there any charge on UPI payments taken on a POS machine?
UPI payments to merchants carry zero MDR under government rules. The provider may still charge for the device or other services.
POS machine or soundbox: which do I need?
A soundbox is enough if you only take UPI QR payments. A POS machine is needed to accept debit and credit cards.