UPI ADVANCES · OWNER CONTROL
0% UPI advances.
Direct to you.
Collect a qualifying UPI booking advance of ₹2,000 or less at zero MDR. Show the amount at checkout, receive it directly and confirm after verifying payment.
Policy update · 17 October 2026: The planned UPI MDR rollout has been deferred until after Diwali. The revised start date will be announced separately. Read the NPCI notice →
0% MDR applies to eligible UPI payments. Balance payments and provider fees follow applicable terms.
See all the ways UPI can still be 0% ↓
ILLUSTRATIVE PAYMENT FLOW
Your booking. Your collection.
Direct UPI · manual confirmation
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Your guestPays the booking advance shown at checkout
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₹
Your property’s UPI IDThe payment details you configure
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✓
Your bank accountVerify receipt, then confirm the booking
OpenStays organises the booking.
We never hold your guest’s money.
FROM ADVANCE TO CONFIRMATION
A clear path from booking to payment
Quote the amount
Guests choose their dates and room. Checkout shows your UPI details and the amount due under your advance policy.
Receive directly
The guest pays using their UPI app. Funds go to the account linked to your property’s UPI ID, without passing through OpenStays.
Verify & confirm
The reservation remains pending. Check the credit in your bank or UPI app, match the payment reference and then confirm the booking.
YOUR ADVANCE PAYMENT FEATURE
Start with an advance up to ₹2,000
Set a partial advance so the initial amount due stays at ₹2,000 or less. Checkout shows that amount alongside your property’s UPI details. A qualifying merchant UPI payment within this threshold has zero MDR.
Verify receipt, then confirm the reservation. Collect the remaining balance when due under your stated payment policy.
If you use a percentage advance, check the resulting amount for each booking. A percentage does not automatically cap every advance at ₹2,000.
ILLUSTRATIVE BOOKING
₹10,000
Total stay amount
₹2,000
20% booking advance
Qualifying UPI advance · 0% MDR
₹8,000
Balance due later
Collect under your property’s policy
The balance is a separate payment. Its amount, method and transaction category determine any applicable charges.
PUBLISHED FRAMEWORK · ROLLOUT DEFERRED
When UPI can still be 0%
The September framework retains zero MDR for the categories below. The new charge on select merchant payments has been deferred. Check your provider’s current terms and the revised implementation notice.
0%
P2P · individual accounts
An individual homestay or B&B host may use a personal-account UPI ID. If the provider processes permitted collections as P2P, transfers remain free regardless of amount.
0%
Merchant payments ≤ ₹2,000
Person-to-merchant UPI payments up to ₹2,000 remain free of MDR under the updated framework.
0%
Eligible P2PM merchants
Small merchants in the P2PM category receiving up to ₹1 lakh per month through UPI QR codes continue to have zero MDR, including payments above ₹2,000.
Using UPI linked to an individual account? Confirm with your bank or UPI provider how your property collections are classified and whether your account terms permit that use. A personal app versus a business app, such as Google Pay Business, is not by itself proof of the transaction category.
Policy checked: 17 October 2026 · NPCI rollout update → · Ministry of Finance framework →
Product walkthrough · Opens on YouTube
SEE THE GUEST EXPERIENCE
A clearer guest checkout
Dates, room choice, amount due and your payment details sit in one booking flow. Guests do not need to search an old message for your UPI ID.
Watch the manual UPI checkout, then see how to configure your property and advance policy.
CLEAR ABOUT COSTS
Direct collection. Transparent charges.
OpenStays charges for its software. Your bank or payment provider sets the charges for processing payments. These are separate costs.
0%
OpenStays booking commission
We do not take a percentage of your bookings or hold guest payments.
Subscription
Software & usage charges
Your OpenStays plan and applicable usage charges cover the software. See current pricing →
Provider fees
Payment processing
Applicable UPI MDR, gateway fees and taxes depend on your payment setup and provider.
UPI MDR rollout deferred
The original 15 October 2026 start date no longer applies. NPCI’s 13 October notice postponed implementation until after Diwali, with a fresh date to follow.
The September framework specifies 0.4% MDR on eligible merchant payments above ₹2,000, capped at ₹300. This describes the announced framework, not a charge that started on 15 October. Confirm the revised effective date, your classification and any separate provider fees before collecting payments.
Direct UPI collection does not automatically exempt your property. Confirm your category and applicable charges with your bank or payment provider before choosing your setup.
Policy checked: 17 October 2026 · Read the official NPCI update → · Read the September Ministry of Finance FAQ →
UPI & advance payment questions
The deferred rollout, published exemptions and your booking workflow: explained for property owners.
What is MDR?
MDR is the payment-acceptance fee charged within the merchant payment ecosystem. It is separate from OpenStays subscription and usage charges.
When do the new UPI MDR rules begin?
NPCI deferred the rollout until after Diwali in its 13 October 2026 notice. The exact start date will be announced separately. The earlier 15 October date no longer applies. Check the latest NPCI notice and your provider’s implementation update.
Which UPI payments can still have 0% MDR?
P2P transfers, merchant payments up to ₹2,000 and eligible P2PM small-merchant collections retain zero MDR.
Can a homestay or B&B host use P2P UPI?
An individual host may use a personal-account UPI ID where the bank permits the collection and classifies it as P2P. P2P transfers remain free regardless of amount. Confirm your property’s setup with the bank or UPI provider.
Does using a personal app instead of Google Pay Business guarantee 0% MDR?
No. Ask your provider for the actual account and transaction classification. The app’s personal or business label alone does not establish eligibility.
Who qualifies for the P2PM small-merchant exemption?
P2PM merchants receiving up to ₹1 lakh per month through UPI QR codes retain zero MDR, including payments above ₹2,000. Confirm that classification with your acquiring bank.
Is a merchant UPI payment of exactly ₹2,000 within the free threshold?
Yes. In the September framework, payments of ₹2,000 or less are within the zero-MDR threshold. The new charge above this threshold has been deferred and remains subject to merchant classification and the revised effective date.
How does OpenStays help me collect a 0% MDR booking advance?
Configure a partial advance that comes to ₹2,000 or less. Checkout shows the amount and your UPI details. Verify receipt and confirm the reservation. Collect the balance when due under your stated policy.
What does a ₹10,000 booking with a 20% advance look like?
The guest pays ₹2,000 initially, which is within the qualifying zero-MDR threshold. The remaining ₹8,000 is due later under your policy. That balance payment is assessed separately for applicable charges.
Does a percentage advance automatically stay below ₹2,000?
No. The amount changes with the booking total. A 20% advance is ₹2,000 on a ₹10,000 stay, but ₹3,000 on a ₹15,000 stay. Check the amount due and choose your advance policy accordingly.
Does a 0% MDR advance make the later balance free too?
No. Assess each payment separately under the rules in force when it is collected. Under the announced framework, a later balance above ₹2,000 may attract MDR once implementation begins, depending on merchant classification. State the advance and balance clearly in your booking terms.
How much MDR could apply to a ₹10,000 merchant UPI payment?
As an illustration of the announced framework, ₹10,000 × 0.4% = ₹40 where the standard rate applies. It is calculated on the full payment amount. The rollout has been deferred, so this example does not establish a charge currently due. Confirm applicable provider charges and taxes separately.
Is there a cap on the standard UPI MDR?
The September framework caps the standard MDR at ₹300 per transaction for payments of ₹75,000 and above. The rollout has been deferred; confirm the revised effective date and applicable category before treating this as a current charge.
Do the same rules apply to credit cards or credit lines linked to UPI?
No. Credit-linked UPI uses separate credit-product rules. Do not assume the bank-account UPI exemptions apply.
Can I add the MDR to the guest’s bill?
No. The official framework says merchants must not pass UPI MDR on to customers.
How do I check whether my property is P2P, P2PM or P2M?
Ask the bank or UPI provider linked to your collection account. Request its classification and fee schedule for your actual payment setup. Keep that confirmation with your business records.
Does OpenStays collect the guest’s money or deduct MDR?
OpenStays does not hold guest funds or charge a booking commission. Direct UPI goes to the account linked to your configured UPI ID. Your bank or provider applies any payment charges under its terms.
How do I set up direct UPI and an advance policy?
Configure your property’s receiving UPI ID and payment policy in OpenStays. Choose full payment, a partial advance or pay at property, then review the checkout amount. See the property setup walkthrough for the configuration screens.
Does direct UPI confirm bookings automatically?
No. Direct UPI reservations remain pending until your property verifies receipt and confirms them. Automatic payment confirmation requires a supported payment gateway integration.
How should I verify a guest’s payment?
Check the actual credit in your bank account or UPI app. Match the amount and transaction reference to the booking before confirming. A guest’s screenshot is not proof that funds reached your account.
What if a payment is pending or fails?
Ask the guest to check the status in their UPI app and use its help process if needed. Check your own account before confirming or requesting another payment, to avoid duplicate collection.
Who handles cancellation refunds?
Your property handles refunds under its cancellation policy. For direct UPI, refund through your bank or payment app and retain the reference. For gateway payments, use the provider’s refund process and terms.
Can guests pay by card or other online methods?
Yes, through a supported gateway such as Razorpay, subject to the methods enabled on your account. Gateway fees, onboarding requirements and settlement schedules apply.
Do I need my own website?
No. Share your hosted OpenStays listing and booking link. If you have a website, use the booking widget to bring the booking flow into it.
Does zero MDR mean the OpenStays software is free?
No. Zero MDR describes eligible payment processing. OpenStays software subscription and applicable usage charges are separate. See current plans and pricing.
Where can I confirm the latest policy?
Read the NPCI notice dated 13 October 2026 for the postponement and the September Ministry of Finance FAQ for the announced framework. Reviewed on 17 October 2026. Your bank or provider can confirm your classification and current charges.
Your bookings. Your payment choices.
Start with the collection method that works for your property.