QR BenchSmall merchants and P2PM: what to check
Small business size alone does not establish a UPI fee exemption. Confirm the account’s P2PM classification with the acquiring bank or payment provider.
What the official FAQ says
P2PM means Person-to-Person-Merchant. Eligible merchants receiving up to ₹1 lakh monthly through UPI QR have zero MDR. Three consecutive months above that level trigger transition to P2M. GST registration is not required for this exemption (Q23–29).
Ask for classification, not a sales assurance
Give the provider the UPI ID shown on your existing merchant QR. Ask for the current category, the date any category change takes effect and how monthly inward receipts are monitored. Keep its written response with your payment records.
Check that you are discussing the same account and QR used by customers. If your business has multiple collection addresses, do not assume the answer for one address covers all of them.
A useful monthly review
- Download settlement or transaction records from your bank or payment provider.
- Identify the collection account and statement period.
- Compare inward UPI collections with the provider’s classification report.
- Ask the provider to explain any deduction or category change you cannot reconcile.
QR Bench cannot see those records. Selecting P2PM in the calculator is your assumption, not a verification performed by this website.
Changing the QR does not change the account
Generating a new image, shortening the payee name or removing a payment note cannot grant P2PM status. Continue using the collection setup your provider supports. Read the MDR reference for the complete supported schedule.
Official sources
Informational only. Merchant classification affects applicability. Confirm current terms with your acquiring bank.