Point Of Sale (POS) is an Electronic Data Capture (EDC) machine that accepts Debit/Credit Card payments. You can also accept UPI payments on your POS device if Dynamic QR facility is enabled The customer needs to tap/swipe/insert the card on the machine to make a payment and the funds will be directly transferred to your account

FAQs for Instant UPI

What is instant UPI settlement or real-time settlement for UPI transactions?

For any customer payments done on POS machines or QR stickers, the settlement to the merchants usually happens on T+1 day (i.e., the next day after the transaction is done) in their registered Current account.

However, with Kotak Bank's Instant UPI Settlement service, merchants can receive funds instantly in their Kotak Current Accounts for all successful UPI transactions done by their customers on Kotak POS machines or QRs.

What is POS?

Point Of Sale (POS) is an Electronic Data Capture (EDC) machine that accepts Debit/Credit Card payments. You can also accept UPI payments on your POS device if Dynamic QR facility is enabled
The customer needs to tap/swipe/insert the card on the machine to make a payment and the funds will be directly transferred to your account

Can anyone avail Instant UPI settlement facility?

Only merchants who hold a Kotak Current Account are eligible for this service. It applies to all UPI transactions done on POS terminals, Bharat QR, and UPI QR stickers. Currently, this service is available for new Kotak merchants only.

Also, this service is enabled at the MID level, so all TIDs linked to that particular MID will be activated with the service.

How can Instant UPI Settlement help merchant's business?

With Instant UPI Settlement, merchants can access their funds within seconds.

Merchants can enjoy increased cash flows, manage low working capital, pay bills at any time without delays, repay any due loans, along with managing their stocks.

What is the difference between Instant UPI Settlement and Same Day Settlement?

Kotak Bank offers merchants the flexibility to choose how they prefer the settlements for their business.

With Same Day Settlement, all transactions (Cards & UPI) get settled the same day within a few hours basis the cycle opted by the merchant (cycle 1 & cycle 2)

With Instant UPI Settlement, settlements for all their UPI transactions happen instantly. For Card transactions, Instant Settlement facility is not available. Card transactions will get settled as per the defined settlement cycles.

How can your customers make payments via Kotak POS?

Your customers can make a payment by inserting the card in the card slot or swiping the card or tapping the card on the device head if the card is NFC- enabled
Once you enter the sale amount, the customer will enter the card PIN
You can also accept UPI payments on your POS device if Dynamic QR facility is enabled
Your POS machine will generate a receipt of payment/ chargeslip, after successful execution of transaction

For example, you may have 2 POS machines and 1 QR in one outlet. In this case, you will have 1 MID and 3 TIDs.

Does UPI Instant Settlement service have any restrictions on the transaction amount?

Merchants will be able to settle all UPI transactions instantly without any limitations on the amount.

When will I receive the statement for the POS transactions done at my store?

If you don’t receive the statement at the end of the day, give a missed call at 1800 315 7373 (Toll Free) or call 1860 210 2101 (Local Charges Apply)
You can also write us your queries via email at [email protected]

For Instant UPI Settlement, will a merchant get the settlement on all days, including public holidays?

Yes, the Instant UPI Settlement service is available 24x7 on all days,

including Sundays and public holidays.

When will the settlement happen for POS transactions?

For POS, the settlement takes place on T+1 day (i.e. the next day after the transaction is done) in your Kotak Current Account
Settlements will happen on all 365 days, including all Saturdays, Sundays and public holidays
If opted for Same Day Settlement service, based on the settlement cycle selected, you will receive funds within a few hours on the same day itself (charges applicable on Same Day Settlement value added service)

Are there any charges?

This service is entirely free of cost with no set-up or maintenance fees.

Currently, there is Zero MDR on UPI transactions.

What is the Same Day Settlement?

You can choose either or both the cycles

Cycle 1 : Cut off time 2pm - receive funds by 5:30pm
Cycle 2 : Cut off time 5pm – receive funds by 8:30pm

Fee: 0.20%+ GST will be applied on settlement value for each same day settlement cycle
Same Day Settlement is available on all days, except Sundays

How can a merchant opt for Instant UPI Settlement?

Currently, the Instant UPI Settlement service is available for new Kotak merchants only. Merchants can initiate a request at the time of applying for a new POS machine or QR sticker by reaching out to their Relationship Manager,

visiting the nearest branch, or simply requesting the sales executive to activate the service.

Does Kotak POS terminals accept International Debit Cards and Credit Cards?

Yes, you can accept International Debit and Credit Cards on POS if International Card Acceptance value added service is enabled on the POS terminal
Affiliate Cards {Discover Financial Service (DFS), Japan Credit Bureau (JCB) and China Union Pay International (CUPI)} are accepted on all POS terminals with International Card Acceptance enabled

How long does it take to activate the service?

For a merchant who has a Kotak Current account and has taken a new POS terminal,

the service will come into effect as soon as the on-boarding is completed successfully & the machine is ready to use.

For the existing merchants holding a Kotak POS, the service is currently not available.

Is Dynamic Currency Conversion facility available on Kotak POS terminals?

Dynamic Currency Conversion (DCC) is a service that allows international customers to pay in their home currency when making purchases at your establishment
When customers use their international Credit or Debit Card for a purchase, they have the choice to pay in the local currency or their home currency
If they opt for their home currency, the transaction amount gets converted to the local currency at the current exchange rate, and they will be charged in their home currency
DCC* can provide several benefits to you, including increased transparency, better exchange rates, improved customer satisfaction, and additional revenue streams

*Charges applicable for DCC value added service.

Can a merchant switch back to standard T+1 settlements?

In case the Merchant doesn't want to settle payments instantly for UPI transactions and wants to disable the service entirely and switch back to standard T+1 settlement,

then the Merchant must reach out to their Relationship Manager or visit the nearest Bank branch requesting the same.

Can I accept UPI payments using POS device from my customers?

Yes, you can accept *UPI payments from your customers using POS device if Dynamic QR is enabled
Customers can now pay via any UPI app. Customers can opt to pay via Rupay Credit cards^ as well

*No MDR on UPI transactions.
^Credit Card on UPI transactions incur MDR charges.

Will the settlements happen automatically for this service?

Yes, UPI transactions get automatically settled on any terminal type: Kotak POS machine, or QR stickers, with no action required from the Merchant's end.

Can I offer an EMI option on Debit Card or Credit Card transactions?

Yes, if you have opted for the EMI facility (applicable charges apply), you can accept card payments from customers with the option of converting transactions above ₹3000 into EMI through Kotak POS machine without documentation.
The final rate and tenor of EMI will be decided by the card issuing bank and is displayed on the terminal at the time of transaction.

Can merchants get a report for all the payments received through Instant UPI Settlements?

Merchants can find all the payment details in the settlement report (MPR).

What are the charges applicable on Kotak POS?

The Merchant Discount Rate (MDR) on Debit Card transactions is regulated by the RBI from time to time.
POS terminal rental, installation charges and MDR on Credit Card/Prepaid Card transactions have been discussed & accepted by you at the time of filling up the Merchant Acquiring Services form.
For details on other charges, visit our site kotak.com and refer to the General Schedule of Features and Charges (GSFC).

Is it applicable to large merchants?

Yes, it applies to large merchants as well. For each credit, the Merchant will receive an intimation of the funds credited to his account.

If I am facing technical issues, how can I raise a service request or whom to connect with if I need an additional paper roll?

If you are facing any technical issue or have any requests, we are available at your service, just a missed call away. Give a missed call at 1800 315 7373 (Toll Free) or call 1860 210 2101 (Local Charges Apply)
You can also write us your queries via e-mail at [email protected]

Can a merchant enjoy both, Same Day Settlement as well as Instant UPI settlements?

Yes! With instant UPI settlements, there is no need for manual batch closure & hence all UPI transactions will get instantly settled

If a merchant also has availed Same Day Settlement service, based on the cycle & depending on timely batch closure by the Merchant, his card payments will get settled at a fee of 0.20%. There is no fee for UPI and RuPay debit card transactions settled with the Same Day Settlement feature.

How do I raise a service request for an issue with my POS on kotak.biz?

To raise a service request regarding your POS device on kotak.biz, follow below steps:

Click on the More
Select Service Requests.
Tap on Report an Issue.
Choose POS under Request Type.
Verify your Terminal ID and proceed.
Select your Problem Type, Sub Problem Type, and Preferred Call Back Time, then submit your request.

Our support team will contact you shortly to resolve the issue.

Frequently Asked Questions