How to Use Credit Cards for UPI Payments

With Unified Payments Interface (UPI) dominating the digital payment landscape in India, it is not uncommon to find millions of QR codes and direct pay links popping up at every other place-be it a pricey restaurant or a street food stall. UPI has allowed users to make smooth transactions directly from their bank accounts without even carrying cash or debit cards most of the time. Now comes an interesting question: Can one use a credit card for UPI Payment Through Credit Cards in India?

In this article, we walk you through the process of linking your credit card with UPI, its benefits, and how it can be used for making payments. 

Why Use UPI with a Credit Card?

The idea of UPI payment through credit cards is gaining traction as users seek more flexible and rewarding digital payment options. While debit cards have easily become part of UPI, using credit cards is much less common. The possibility of using credit cards through UPI could provide one with more flexibility, safety, and convenience. With your physical credit card locked away at home, UPI apps could be used for payments from a linked credit card, and cashbacks and reward points, two major benefits of credit, could be availed without even swiping or sharing any card details.

Presently, this facility is only for RuPay credit cards which may be linked with UPI to make credit-based transactions seamless. Visa and MasterCard have not yet granted such a facility. So make sure that your card is a RuPay credit card for making payments in India using your credit card.

How to Link Credit Cards with UPI for Payments in India

To get started with UPI payment through credit cards, you need a compatible RuPay credit card and a UPI-enabled app such as Google Pay, Paytm, or PhonePe.

Step 1: Choose and Register with a UPI Application

If you haven’t already, then download a UPI app such as Google Pay, Paytm, PhonePe, or other similar UPI apps available on either the App Store or Google Play Store. Many of the UPI apps also support credit card linking nowadays and especially for RuPay cards. Once downloaded:

1. Activate the UPI app by linking the same to the bank account and registered mobile number of the user.
2. Verify your details with an OTP sent to your registered mobile number.

Step 2: Link Your Credit Card to UPI

1. Go to your profile or settings page in the UPI
2. Find the option called “Add Payment Method” or “Set up Payment Method.”
3. Input the RuPay credit card, authenticate using the OTP obtained at your registered mobile number, and then confirm the link.

Thus, this is how one can connect their RuPay credit card to their UPI account. Moreover, it can be used to make payments via UPI as if a debit card is connected with the respective bank account.

How to Use UPI to Make Payments via Credit Card

The process of UPI payment through credit cards is the same as in traditional UPI transactions.. This is how you can do it:

1. Open your UPI app and tap on the payment option.
2. Scan the QR code or enter the UPI ID of the recipient.
3. Choose the payment option: You will see your linked credit card.
4. Input the amount and confirm by entering your UPI PIN.
5. With the help of this service, you can make a quick payment without being at the merchant’s store in person to present your card, thereby not having to hand out sensitive card information.

Advantages of Using UPI with Credit Cards

That’s where UPI payment through credit cards makes life easier by combining speed, safety, and smart rewards.

1. No Need for a Physical Card

When you associate a credit card with a unified interface, you do not need to carry the actual credit card around with you in case you lose or damage it.

2. Ease of Use

You can pay using all your cards in one single app-from paying bills or buying products online to all offline payments-without inputting your card details for every transaction.

3. Rewards and Offers

A credit card through UPI may provide you with extra reward points, cash back, or discounts as offered by the card issuer. This goes well for users looking for the highest benefit from the bank card.

4. Instant Transactions

UPI transactions are instant. Through the connection of your credit card to your UPI, you derive the pleasure of instant transactions through UPI and get its benefits also.

5. Easier Financial Tracking

Most of the UPI apps track transactions in detail; thereby, all your spending transactions, be it the credits made to your account from the usage of the credit card, is on your finger tips easily trackable. Limitations with Use of Using Credit Cards using UPI

Limitations of Using Credit Cards with UPI

Though numerous advantages, there are limitations as well:

• RuPay Only: At present, UPI payment through credit cards is only supported for RuPay network credit cards.. It will be possible only when you have a Visa or MasterCard Credit Card, as those networks accept UPI integration.
• Charges on Credit Cards for UPI: Some banks charge extra for UPI transactions if you are paying using credit cards. For this, you have to check with your bank if the bank is charging extra if you pay using credit-based UPI.

Which Credit Cards Support UPI Payments?

Several banks are offering RuPay credit cards that can be connected with UPI, including:

• Punjab National Bank
• Union Bank of India
• Indian Bank
• HDFC Bank
• Axis Bank
• Kotak Mahindra Bank
• Canara Bank
• State Bank of India
• Yes Bank
• BOB Financial Solutions Limited

Holding any RuPay credit card by the above-mentioned banks puts you in a class that qualifies for connecting it to UPI for doing credit-based transactions. More banks are expected to feature in the list, with more expansion on the horizon for UPI credit card integration.

Recommended UPI Applications for Credit Card Payments

Here are a few of the best UPI apps that are also accepted by RuPay credit cards. These include:

• BHIM
• Google Pay
• Paytm
• PhonePe
• CRED
• PayZapp

Use applications that have positive ratings since it will give better safety and faster transaction completion compared to other credit card-integrating options.

Featured Credit Cards for UPI Integration

Some of the popular RuPay credit cards, their advantages, and acceptance on UPI integration include the following:

1. SBI Cashback Credit Card
   • Annual Fee: ₹999 + 18% GST (waived on an annual spend of ₹2 lakh).
   • Benefits: 5% cashback on all online spends, 1% cashback on offline spends, and no charge for fuel surcharge.
2. Axis Bank Ace Credit Card
   • Annual Fee: ₹499 (waived on an annual spend of ₹2 lakh).
   • Benefits: Cashback of 5% for bill payments, complimentary lounge visits, and a waiver for fuel surcharge.
3. SBI SimplyCLICK Card
   • Annual Fee: ₹499 + GST (waived on an annual spend of ₹1 lakh).
   • Benefits: Earns 10X reward points on all online spends and several shopping rewards.

Read More:

• How to Paying with Credit Cards on PhonePe: Everything You Need to Know
• How to Cancel ICICI Credit Card: A Comprehensive Guide

Bottom Line

UPI payment through credit cards marks a major advancement in the digital payment evolution of India. To learn more about how UPI works, you can visit Unified Payments Interface (UPI). It can be connected with UPI by using a RuPay credit card, so you can enjoy credit with all the benefits at your end by using a seamless interface for payments at UPI. If you need quick, safe payment, linking it to UPI would serve the purpose. These apps and cards together enable smooth and secure UPI payment through credit cards.

Frequently Asked Questions (FAQs)