Which Payment Gateway Offer 0 Fee on UPI?

When UPI caps are hit, your platform should:

• Detect the cap automatically.
• Suggest NetBanking, Card, or Split UPI.
• Retry intelligently with smaller amounts.
• Offer EMI or payment links for bigger fees.
• Explain the reason clearly in-app.

That combo keeps your checkout smooth and prevents frustrated parents from calling the finance desk because UPI didn’t work again.

If your marketplace collects education fees via UPI, you can totally improve user experience by showing real-time messages when someone’s eligible for the new ₹5 lakh UPI limit (post–Sept 2025 NPCI update). The trick is to make your system smart enough to detect eligibility before the user hits Pay.

Here’s how most platforms are doing it:

• Tag the transaction category early  When generating the UPI intent or QR, include metadata like category: EDUCATION_FEES. This tells the payment gateway (Razorpay, Cashfree, etc.) that the transaction might qualify for higher UPI limits.
• Use PSP/bank eligibility APIs Many UPI gateways now expose a limit eligibility response when you initiate a collect request or pre-validate a VPA. You’ll get something like:

{

upi_limit_status: HIGH_LIMIT_ELIGIBLE,

limit_amount: 500000

}

If you get that flag, show a small message right above the payment button:

You can pay up to ₹5,00,000 via UPI for education fees.

If the payer’s bank doesn’t support it yet, display a fallback:

Your bank supports UPI payments up to ₹1,00,000. For higher amounts, you can split the payment or use NetBanking.

• Cache the results Instead of calling the API for every user, keep a cached table of supported banks and PSPs that have rolled out higher limits. Refresh it every few hours so you’re not rate-limited or adding latency.
• Update your front-end logic Use a dynamic message component that checks the upi_limit_status field from your backend response and renders the right message in real time, no extra step needed from the user.
• Log user interactions Track when the higher limit eligible message was shown versus when the transaction failed or succeeded. It’ll help your product and finance teams measure how much of your traffic is already benefiting from the limit increase.

To handle ₹5L UPI receipts for education fees properly:

• Update settlement caps to ₹5L per transaction.
• Add a dedicated ledger for high-value education UPI receipts.
• Use a clearing account until settlement confirmation.
• Adjust refund/reversal limits.
• Confirm your PSP supports the higher limit.

Do this, and your marketplace will stay compliant and your finance team won’t be pulling all-nighters during audit season.

In short, your finance alert setup should include:

• Daily total UPI inflows vs. cap.
• Per-VPA usage.
• High-value payment flags.
• Failure/timeout rate spikes.
• Pending settlements.
• Split payment summaries.

These alerts help your finance and ops team stay ahead of PSP caps, bank throttling, and reconciliation delays, without constantly digging through dashboards.

If your payment gateway is handling big education fee payments, you’ve probably run into UPI’s per-transaction cap issue. Most banks still limit UPI transfers to ₹1 lakh (sometimes even less), so if a parent tries to pay ₹1.5 or ₹2 lakh in one go, the transaction just fails. The simplest fix is to make your integration smart enough to auto-split the payment before it ever hits that limit.

Prior to starting a collect request, make sure you are aware of the current UPI transaction cap. Set off a split workflow that splits the total into smaller amounts, such as ₹1 lakh and ₹50,000 for a ₹1.5 lakh cost, if the amount exceeds that maximum. To ensure that every part of the transaction can be tracked while still being connected to a single source record, store these as linked sub-payments under a single parent invoice.

You can send these payments either sequentially (one after another) or in parallel. Sequential is usually safer, less chance of partial or double payments, while parallel can save time if your PSP supports it. Either way, make sure your checkout page clearly tells users what’s happening. Something like, your fee exceeds the ₹1L UPI limit. It will be processed in 2 secure payments. That kind of messaging prevents confusion and reduces support calls.

Once both UPI payments succeed, mark the main invoice as fully paid. If one leg fails, tag it as Partially Paid and only retry that portion. The reconciliation logic should automatically match all child payments using their UPI reference IDs, so finance can see everything tied to one invoice in their reports.

Refunds should follow the same logic, break them down into parts that mirror the original split amounts, or the PSP will reject them.

Finally, set up a daily finance alert that shows how many split UPI payments were processed and their total value. It keeps teams aware of how often you’re hitting caps and where limits might tighten.