How to Determine if a UPI ID is for a Person or a Merchant

Unified Payments Interface (UPI) offers a seamless and secure way to make transactions through mobile banking apps. However, it can be challenging to determine if a given UPI ID belongs to a person or a merchant. Here, we explore various methods to verify the nature of a UPI ID, including direct inquiries, UPI app functionalities, transaction history, and online presence checks.

Direct Inquiry

The simplest method to determine the nature of a UPI ID is to ask the individual or business directly. They will be able to confirm if their UPI ID is for personal or business transactions. Direct communication ensures you get the most accurate and up-to-date information.

UPI Apps

UPI-enabled apps like Google Pay, PhonePe, Paytm, and others provide additional convenience. By initiating a transaction through these apps, the app usually displays information about the recipient. For merchants, the app might show the business name or indicate it’s a merchant account. This feature is particularly useful in validating the UPI ID.

Transaction History

Reviewing your transaction history can also help distinguish between personal and merchant UPI IDs. Personal transactions typically show the individual’s name, while merchant transactions often have business names listed. This can be a reliable method if you have a history of transactions with the UPI ID in question.

QR Code Scanning

Accessing a QR code associated with the UPI ID can provide further clarity. Merchant QR codes often include the business name, while personal QR codes do not. This method is particularly handy for quick identification without engaging in a lengthy inquiry process.

Online Presence

For businesses, searching for their UPI ID online can reveal valuable information. Many businesses display their UPI IDs on their websites or social media platforms, which can help confirm the nature of the account. This method is especially useful for public companies or businesses that are transparent about their payment methods.

Contact Customer Support

If you are unsure, contacting the customer support of your UPI app can provide assistance. Customer support teams can confirm the nature of a UPI ID and provide relevant details to help you make an informed decision.

Example: You can easily understand whether a UPI ID is for a merchant or a person through Google Pay. For instance, if you add a RuPay credit card to GPay and can pay by card, it suggests that the UPI account is a merchant account. This method is practical and needs to be done just once to validate the account type.

Validation Verification: Currently, the most reliable way to differentiate between UPI IDs of a merchant and a person is to check the name on the account during verification. Ideally, merchant accounts should be registered under the entity’s name rather than an individual’s. However, this method is not 100% foolproof, as individual current accounts may still be registered under a person's name.

Going forward with UPI 2.0, there will be a clear demarcation between merchant and individual UPI IDs. Each transaction request from a merchant will come with a verification status. Banks will verify merchants during onboarding, and this verification will accompany the transaction request. If a merchant is not verified, there will be a clear message indicating that the merchant is not verified.