Answer By law4u team
UPI (Unified Payments Interface) has become one of the most popular and convenient payment methods in India. It is widely used for quick transactions due to its zero transaction fees and seamless integration with banks. However, some online merchants have been found to charge extra fees or impose surcharges for UPI payments, which is both unfair and against the regulations. According to the Reserve Bank of India (RBI), merchants are not allowed to levy extra charges on payments made via UPI. If you encounter this situation, it is essential to know your rights and take the appropriate steps to report the issue to the relevant authorities.
Rights of Consumers Regarding Extra Charges for UPI Payments
Right to Fair Pricing
As per the RBI guidelines, no merchant can impose an additional surcharge or extra charges for UPI payments. UPI transactions are designed to be free from transaction fees for consumers. Merchants cannot charge any extra fees for using UPI as a payment method.
- Action: If a merchant adds any extra charge or surcharge for UPI transactions, it is against the law, and you have the right to report them.
Right to Transparency
Consumers are entitled to clear and transparent information regarding any transaction fees. The price displayed should be the final price that the consumer is required to pay without any hidden charges for choosing a specific payment method, including UPI.
- Action: If there are additional charges for UPI payments, ask the merchant for an explanation, and keep records of the conversation for future reference.
Right to Report Unfair Practices
You have the right to report any unfair business practices or violations of payment regulations to appropriate authorities, such as the RBI, consumer protection organizations, or payment gateways.
- Action: If a merchant refuses to reverse the charges or continues to impose extra fees, file a formal complaint with the authorities.
Steps to Take If an Online Merchant Charges Extra for UPI Payments
Check the Merchant’s Terms and Conditions
Before taking action, review the merchant’s terms and conditions to ensure that they have clearly stated any payment-related charges. Some merchants may claim to charge fees for certain payment methods, but for UPI payments, this is not permissible.
- Action: If the terms mention fees for UPI, this is a violation of RBI guidelines. Take screenshots of this information for evidence.
Contact the Merchant
Reach out to the merchant's customer support team and inquire about the additional charges on UPI payments. Politely inform them that RBI regulations prohibit merchants from charging extra fees for UPI transactions.
- Action: Request that they immediately reverse the charges and ensure that no extra fees are imposed on future UPI transactions.
Request a Refund or Reversal
If the merchant has already charged extra for UPI payments, request a refund or reversal of the surcharge amount.
- Action: Keep a record of all communications, including emails or chat logs, as proof of your request and the merchant's response.
Escalate the Issue
If customer support does not provide a satisfactory response or refuses to reverse the charges, escalate the matter to a higher authority within the merchant's organization, such as a manager or supervisor.
- Action: Use your communication records as evidence and insist on a resolution.
Report the Issue to Regulatory Authorities
If the merchant continues to charge extra fees for UPI payments, you can report the matter to the Reserve Bank of India (RBI), which regulates digital payments in India. You can also file a complaint with the National Consumer Helpline or use the Consumer Online Resource and Empowerment Centre (CORE).
- Action: Visit the RBI's official website or the National Consumer Helpline (NCH) to submit your complaint. Ensure that you include details such as:
- Merchant name and contact details
- Transaction details (date, amount, etc.)
- Evidence of extra charges or surcharge
- Communication records with the merchant
File a Complaint with Payment Gateway Providers
Many online merchants use third-party payment gateways like Razorpay, Stripe, or Paytm to process payments. You can also report the issue directly to these payment gateway providers.
- Action: Contact the payment gateway provider and explain the situation, asking them to investigate and ensure that the merchant complies with the guidelines regarding UPI payments.
Use Consumer Forums and Social Media
If the merchant remains unresponsive, consider using consumer forums, social media platforms, or review sites to bring attention to the issue. Publicly sharing your experience might encourage the merchant to resolve the matter.
- Action: Be specific about the issue, provide evidence, and tag the merchant or relevant regulatory authorities.
How to Protect Yourself from Unfair Payment Practices
Always Review Payment Details Before Confirming
Before completing any transaction, carefully review the final price to ensure that no additional fees are added for the payment method you are using, including UPI.
- Tip: If you notice any surcharge, do not proceed with the payment and report the issue immediately.
Use UPI-Compatible Platforms
Ensure that the merchant platform supports UPI payments without imposing any charges. Choose merchants that are transparent about their pricing and follow RBI regulations.
- Tip: Opt for reputable online platforms that clearly state their payment policies.
Keep Records of Transactions
Always keep a copy of your receipts, payment confirmation emails, and transaction history for future reference, especially if there are any issues with additional charges.
- Tip: Save screenshots of the checkout page showing the payment details and any charges added during the payment process.
Enable Alerts for UPI Transactions
Enable transaction alerts for UPI payments, so you are instantly notified if any unusual charges are applied.
- Tip: Use SMS alerts or app notifications to monitor your UPI transactions in real-time.
Example
Scenario
You purchased an item from an online merchant for ₹1,000 and opted to pay using UPI. However, during checkout, the merchant added an extra ₹50 charge for the UPI payment option, making the total ₹1,050.
Steps the consumer should take
- Check Merchant Terms: Review the merchant’s terms and conditions to see if they mention any surcharge for UPI payments.
- Contact the Merchant: Contact customer support and inform them that RBI guidelines prohibit charging extra fees for UPI payments. Request them to reverse the ₹50 surcharge.
- Request a Refund: Ask the merchant to issue a refund for the extra ₹50 charge if they are unwilling to reverse it immediately.
- Escalate the Issue: If the merchant refuses to comply, escalate the issue to a higher authority, such as a manager or supervisor.
- Report to RBI and Consumer Authorities: If the matter remains unresolved, file a complaint with RBI, National Consumer Helpline, and the payment gateway provider, providing all supporting evidence.
- Raise Awareness: Post your experience on social media and consumer forums, tagging the relevant authorities to ensure that the issue gets attention.
By following these steps, consumers can take appropriate actions to report merchants charging extra fees for UPI payments, ensuring they are protected under consumer protection laws and payment regulations.
