Zero-Percent QRIS Fees for Small Transactions: Who Benefits?

Starting October 1, 2026, Bank Indonesia will expand the 0% Quick Response Code Indonesian Standard, or QRIS, Merchant Discount Rate for transactions of up to IDR100,000. The policy will cover all merchant categories, including small, medium, and large businesses that could previously be charged a 0.7% MDR.

The phrase “zero-percent QRIS fee,” however, needs to be interpreted carefully. The fee being reduced to zero is the MDR borne by merchants when accepting eligible payments. It is not an automatic discount for customers, a reduction in product prices, or the removal of every cost that may be associated with digital business services.

Consumers are generally not charged an MDR when paying through QRIS. The direct beneficiaries of the change are therefore merchants. Customers may benefit indirectly if more businesses accept digital payments, stop imposing unauthorised surcharges, or maintain their prices because transaction costs are lower.

The policy was not yet effective when this article was prepared. Bank Indonesia announced that the expanded 0% MDR would take effect on October 1, 2026. Until that date, the existing pricing scheme continues to apply, while technical implementation may also depend on the readiness of individual payment service providers.

Bank Indonesia will expand the 0% QRIS MDR to eligible transactions of up to IDR100,000 for all merchant categories from October 1, 2026. The existing 0% rate for micro merchants on transactions up to IDR500,000 will continue. Source: Bank Indonesia, August 17, 2026. The image describes an announced policy that is not effective before October 1, 2026.

What Exactly Is Being Reduced to Zero?

The MDR is a service fee charged to merchants when they accept QRIS payments. The fee is deducted from the transaction value and forms part of the commercial arrangement supporting payment processing.

Bank Indonesia explains that MDR revenue is distributed within the payment industry, including instrument issuers, merchant acquirers, switching institutions, the Indonesian Payment System Association, and the National Electronic Transaction Settlement institution.

A simplified QRIS payment flow works as follows:

1. The customer scans the merchant’s QRIS code.

2. The customer checks the merchant’s name and enters or confirms the payment amount.

3. A payment service provider processes the transaction through QRIS infrastructure.

4. The funds are forwarded to the merchant’s account.

5. An MDR is deducted if a rate applies to the merchant category and transaction value.

When the MDR is 0%, the merchant does not incur an MDR deduction on an eligible transaction. Settlement timing, account fees, devices, internet access, or optional business services may still depend on the provider used.

The MDR is also different from a transfer fee, cash-withdrawal fee, account administration fee, or optional service charge. A 0% MDR does not make every operational component of accepting digital payments free.

How Will the Scheme Change on October 1, 2026?

The policy change will not affect every merchant in the same way. Micro merchants already receive a 0% MDR for transactions up to IDR500,000 under the pricing scheme effective since March 15, 2025.

The largest change applies to small, medium, and large merchants receiving payments of IDR100,000 or less.

The table combines Bank Indonesia’s pre-October QRIS MDR scheme with the new policy announcement. Merchants should verify their classification, implementation date, and actual deductions through their payment service providers after the policy takes effect.

Special merchant categories and other technical details should follow the latest guidance from Bank Indonesia and the relevant provider. The announcement should not be interpreted as eliminating every other service cost.

Who Benefits the Most?

A. Small Businesses With Many Low-Value Transactions

Food stalls, cafés, bakeries, independent convenience stores, laundries, salons, parking operators, and other businesses with relatively small transaction values could be among the main beneficiaries.

Before the new policy, a small merchant receiving an IDR50,000 payment at a 0.7% MDR would incur a deduction of:

IDR50,000 × 0.7% = IDR350

From October 1, 2026, the same transaction would qualify for a 0% MDR. The merchant would theoretically retain an additional IDR350 compared with the previous scheme.

The saving appears small when viewed as a single transaction. Its effect becomes more meaningful when payments are repeated throughout the month.

Suppose a café receives 1,000 QRIS payments per month with an average value of IDR40,000. Its monthly QRIS turnover would be:

1,000 × IDR40,000 = IDR40,000,000

At a 0.7% MDR, the monthly deduction would have been:

IDR40,000,000 × 0.7% = IDR280,000

If every transaction qualifies for the 0% rate, the café could save approximately IDR280,000 per month, or IDR3.36 million per year, in MDR charges.

This is only a simulation. Actual savings will depend on merchant classification, the number of transactions within the IDR100,000 limit, implementation timing, refunds, rounding, and provider terms.

B. Medium and Large Merchants With High Volume

The benefits are not limited to small businesses. Medium and large merchants processing large volumes of low-value payments may also achieve substantial aggregate savings.

Fast-food chains, convenience stores, pharmacies, transportation services, entertainment businesses, and other retailers with an average ticket below IDR100,000 could save MDR across a very large number of payments.

For illustration, assume a merchant processes 100,000 QRIS transactions per month at an average value of IDR60,000. The total payment value would reach IDR6 billion.

If all transactions qualify for the 0% MDR and were previously charged 0.7%, the theoretical saving would be:

IDR6,000,000,000 × 0.7% = IDR42,000,000 per month

This is not an estimate for any particular merchant. It simply demonstrates how a small rate change can have a material effect at high transaction volumes.

C. Micro Merchants Gain Continuity, but Limited New Savings

Micro merchants will continue to receive a 0% MDR for transactions up to IDR500,000. Their threshold is five times the IDR100,000 limit applied to the expansion for other merchant categories.

For a correctly classified micro merchant, the October policy does not create additional savings on transactions below IDR100,000 because the MDR on those payments was already zero.

The main benefit for micro merchants is policy continuity. Their preferential rate for transactions up to IDR500,000 remains in place.

Merchants should still verify how they are classified within their provider’s system. A business that considers itself a microenterprise may not necessarily be recorded as a UMI merchant if its registration details, business documents, or merchant classification are outdated.

A merchant can review:

• The category shown in its provider’s application or dashboard.

• The MDR deducted from each payment.

• The net amount credited after settlement.

• Settlement timing under the provider’s terms.

• Correction procedures for inaccurate classifications.

• The updated rules taking effect on October 1, 2026.

D. Consumers Benefit Indirectly

Bank Indonesia states that MDR is borne by merchants and must not be passed on to consumers. Users also do not face an additional charge merely for paying with QRIS.

Customers will therefore not receive an automatic discount or cashback from the 0% MDR policy. An IDR50,000 meal does not automatically become cheaper simply because the merchant no longer incurs MDR.

Possible indirect benefits include:

• More merchants becoming willing to accept QRIS.

• Fewer attempts to impose QRIS surcharges.

• More equal treatment of cash and digital payments.

• Easier digital payments for small purchases.

• More room for merchants to maintain prices or service quality.

There is no requirement for merchants to pass the MDR saving directly to customers through lower prices. Businesses may use it to cover ingredients, wages, rent, internet access, packaging, or other operating costs.

A claim that the policy will immediately make products cheaper cannot therefore be established solely from the fee reduction.

The Merchant Discount Rate is a QRIS processing fee borne by merchants. Bank Indonesia states that MDR must not be passed on to consumers. Source: Bank Indonesia, originally published August 18, 2023 and updated for the scheme effective March 15, 2025. The separate August 17, 2026 announcement should be used for the policy taking effect on October 1, 2026.

Why Is the IDR100,000 Threshold Relevant?

The IDR100,000 threshold may look small, but it is close to the aggregate average QRIS transaction value.

Bank Indonesia reported 12.55 billion QRIS transactions worth IDR1.12 quadrillion during the first half of 2026. Using those rounded figures, an estimated average transaction value can be calculated as:

IDR1.12 quadrillion ÷ 12.55 billion transactions ≈ IDR89,243 per transaction

The estimated average of roughly IDR89,000 is below the policy threshold. This result, however, must be interpreted carefully.

An average does not reveal the underlying transaction distribution. An IDR89,000 average could be produced by millions of very small payments combined with a smaller number of much larger payments. The calculation does not prove that most QRIS transactions qualify for the 0% MDR.

A more precise assessment would require additional data on:

• The percentage of transactions worth IDR100,000 or less.

• Transactions broken down by merchant category.

• The median transaction value rather than only the mean.

• The number of merchants previously charged 0.7%.

• The distribution between micro, small, medium, and large businesses.

Even with this limitation, the proximity between the estimated average and the IDR100,000 threshold suggests that the policy targets a common segment of everyday digital payments.

Why Is Bank Indonesia Expanding the 0% MDR?

QRIS pricing has to balance two objectives that can pull in different directions.

Lower fees can encourage digital-payment adoption and reduce costs for merchants. Payment systems, however, still require infrastructure, security, processing, settlement, fraud controls, consumer protection, and continued technological development.

Bank Indonesia says the expanded 0% MDR is intended to improve transaction-cost efficiency and broaden the benefits of payment digitalisation. The measure comes as QRIS adoption continues to increase.

As of June 2026:

• QRIS had 65.77 million users.

• Around 6.23 million new users joined between January and June 2026.

• QRIS reached 44.86 million merchants.

• UMKM accounted for 96.68% of QRIS merchants.

• Transaction volume reached 12.55 billion during the first half of 2026.

• Transaction value reached IDR1.12 quadrillion.

• Transaction value increased 93.92% compared with the first half of 2025.

These figures show that QRIS usage is expanding. They do not prove that every registered merchant is active or receives the same economic benefit.

Some merchants may accept only a few QRIS payments each month. Others may process thousands every day. The effect of the 0% MDR will depend heavily on actual transaction intensity.

How Much Can a Merchant Save Per Transaction?

For small, medium, and large merchants previously charged a 0.7% MDR, the estimated saving would be:

• An IDR10,000 payment saves approximately IDR70.

• An IDR25,000 payment saves approximately IDR175.

• An IDR50,000 payment saves approximately IDR350.

• An IDR75,000 payment saves approximately IDR525.

• An IDR100,000 payment saves approximately IDR700.

The saving accrues to the merchant. The customer pays the same amount unless the merchant separately offers a discount or promotion.

For a low-margin business, retaining IDR350 on an IDR50,000 transaction may still matter. The benefit must nevertheless be compared with gross margin, input costs, labour, rent, taxes, packaging, and other operating expenses.

A 0% MDR reduces one payment-processing cost. It does not remove every source of pressure on a business.

Can Merchants Split Transactions to Stay Below the Limit?

The IDR100,000 threshold could create an incentive to divide a larger purchase into multiple smaller payments. An IDR180,000 bill, for example, might be processed as two IDR90,000 payments.

Merchants should not assume that this practice is automatically permitted. Deliberately splitting a transaction to avoid a fee may conflict with provider rules, transaction-governance requirements, sales records, or fraud-control policies.

Payments should reflect the actual transaction, and merchants should follow the terms of their providers. This article does not conclude that transaction splitting is permitted because detailed implementation must follow official rules and merchant agreements.

What Does the Policy Mean for the Payment Industry?

MDR is one source of revenue for institutions processing QRIS payments. When the rate falls to zero, the industry no longer receives MDR revenue from eligible transactions.

Payment service providers and other industry participants may face several consequences:

• Lower revenue per small transaction.

• Greater pressure to improve infrastructure efficiency.

• A stronger need for volume growth and scale.

• More reliance on optional value-added services.

• Continuing fraud-control and operating expenses.

• A need to maintain service quality despite lower MDR revenue.

Bank Indonesia says the policy was designed with industry sustainability in mind. Its actual effect can only be assessed after data become available on transaction volume, processing costs, industry revenue, and service quality.

Higher volume may not fully replace the lost MDR revenue. Lower merchant costs could, however, expand QRIS acceptance and increase overall digital economic activity.

Will a 0% MDR Guarantee QRIS Acceptance?

Fees are not the only consideration for merchants. Businesses also evaluate settlement speed, application reliability, internet connectivity, transaction records, refund processes, fraud risks, and access to customer support.

A 0% MDR removes one potential obstacle, but the policy’s effectiveness will still depend on the everyday user experience.

Merchants should continue to verify that:

• The correct merchant name appears before payment.

• Payment confirmation is received through the merchant’s own application.

• The transaction value matches the bill.

• Funds arrive according to the settlement schedule.

• Transactions are reconciled regularly.

• Records are retained for potential disputes.

• Staff understand the difference between successful, pending, and failed payments.

Lower pricing is more useful when combined with stable infrastructure and secure operating procedures.

A 0% MDR Does Not Make Every Digital Payment Free

QRIS is a Rupiah-based payment standard processed through payment service providers licensed by Bank Indonesia. The QRIS MDR policy does not automatically apply to bank transfers, debit cards, credit cards, remittance services, or crypto-asset transfers.

Each system has a different fee structure. Crypto-asset transactions may involve trading fees, withdrawal fees, blockchain network fees, spreads, or conversion costs, depending on the product and network used.

The phrase “zero percent” must therefore be linked to the correct cost component. In this policy, the eliminated component is the QRIS MDR for eligible transactions and merchant categories, not every cost within the digital-payment ecosystem.

What Should Be Monitored After October 1?

The policy’s success should not be measured only by the number of registered merchants. Post-implementation data will need to show whether actual transactions increase and whether the intended merchants receive the benefit.

Relevant indicators include:

• The proportion of QRIS payments worth up to IDR100,000.

• Transaction growth among small and medium businesses.

• Changes in average ticket size.

• The number of active merchants, not only registered merchants.

• MDR savings actually received by businesses.

• Complaints about surcharges imposed on consumers.

• Accuracy of merchant classifications.

• Settlement speed and provider service quality.

• Fraud, failed-payment, and dispute rates.

• Any adjustment following Bank Indonesia’s evaluation.

The expanded 0% MDR will be more meaningful if it increases active QRIS use, rather than merely increasing the number of displayed QR codes.

Conclusion

The 0% QRIS MDR taking effect on October 1, 2026 will primarily benefit small, medium, and large merchants that receive large numbers of payments worth IDR100,000 or less. These merchants could previously face a 0.7% MDR, meaning small savings per transaction can become material at scale.

Micro merchants will continue to receive a 0% MDR for transactions up to IDR500,000. For correctly classified micro businesses, the new policy provides limited additional savings on small payments because their applicable rate was already zero.

Consumers do not receive an automatic discount because MDR has always been a merchant-side fee and must not be passed on to buyers. The benefit for consumers is indirect, potentially including wider QRIS acceptance, fewer surcharges, and easier digital payments for small purchases.

The policy also does not make every aspect of operating a business free. Merchants still need to monitor account classification, settlement, other service costs, payment security, and provider terms.

The real impact will become clearer after implementation. Success should be judged not only by QRIS transaction growth, but also by whether active merchants retain meaningful savings, consumers are protected from added charges, and the payment industry maintains security and service quality.

Disclaimer

This article is provided for informational and educational purposes only. MDR rates, merchant classifications, implementation timing, other service fees, and payment-service-provider terms may change. Merchants should consult the latest Bank Indonesia announcement and information from their respective providers before calculating the policy’s effect on their businesses. All simulations use simplified assumptions and do not represent guaranteed savings.