How to use credit card for UPI transactions.

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How to use credit card for UPI transactions.
  • By Shivani
  • 24th January, 2024
  • Finance

The UPI surge in India has remarkably transformed the landscape of debit card usage. Carrying a physical debit card is no longer a necessity when UPI is securely nestled within your mobile device.

Yet, the question arises regarding the fate of credit cards. Is it still imperative to have one on hand? If your thoughts are swirling with such inquiries, delve into this guide detailing how to execute UPI transactions using your credit card.

Navigating UPI Payments with Credit Cards in India

Utilizing a physical credit card presents various challenges. The risk of loss or potential misuse looms large. How, then, can one employ a credit card in India? The solution lies in a simple act: linking your RuPay credit card with your UPI.

Technology ceaselessly evolves, swiftly addressing everyday challenges in the digital financial realm. UPI applications are incorporating diverse payment methods, enabling the utilization of credit cards for transactions. Prominent apps like Gpay and PayTM offer the functionality to leverage credit cards for payments, ensuring a secure digital experience.

This entails the ability to make both online and offline payments with your credit card sans physical swiping. Your details remain safeguarded, and the physical credit card retains its shield, allowing you to capitalize on credit card perks like discounts and EMIs.

A crucial note: presently, this feature is exclusive to RuPay Credit Cards in India. Linking VISA or MasterCard Credit Cards with UPI is currently unavailable.

Executing UPI Payments via Credit Card: A Simple Guide

If the conviction to link your UPI ID with your credit card has taken root, follow these steps to seamlessly integrate the two for convenient payments.

Step 1: Download and Register with a UPI Application

If you lack a UPI account, peruse the App Store or Play Store for various UPI applications. Pro Tip: Opt for GPay for its impeccably designed UPI interface and user-friendly experience, reducing the risk of errors during payments.

Once your preferred UPI application is selected, link your bank accounts to your registered phone number, complete authentication and verification, and you’re ready to roll.

Step 2: Link your Credit Card

Navigate to your profile or settings, locate “Set up payment methods” or “Add a payment method,” input your credit card details, and authenticate ownership by submitting the OTP sent to your number.

Et Voila! Successfully linking your credit card with your UPI ID is achieved through authentication.

Executing Payments via UPI with Credit Cards

The procedure for making payments through UPI with your credit card mirrors that of other payment methods. However, peruse the following guide for additional insights:

Step 1: Scan a QR Code or input the recipient’s UPI details.

Step 2: Tap ‘Pay’ and input the amount.

Step 3: Opt to pay with your credit card among the payment choices.

Step 4: Submit your passcode.

Linking your UPI ID with your credit card streamlines life, providing a convenient payment method, at least until technology further simplifies it.

Advantages of UPI for Credit Card Transactions

Billions of transactions unfold monthly on UPI, transforming the payment landscape in India. The struggle for change and the hassle of fumbling with loose notes are relics of the past. A credit card and a UPI app on your smartphone are all you need today.

If uncertainty lingers regarding linking your credit card to your UPI, consider these compelling benefits:

  1. No Physical Card Required: The foremost advantage is the elimination of the need to carry your physical credit card everywhere. Leave the card—and the worry of losing it—at home.
  2. User-Friendly: Handle day-to-day utility bills, phone recharges, and online purchases effortlessly with your UPI-linked credit card, eliminating the need to repeatedly input credit card details.
  3. Rewards and Offers: Active credit card use via UPI accrues points, unlocking cashbacks, discounts, and exclusive offers from your credit card provider.
  4. Established Habit: Using a UPI app becomes a habit, allowing seamless transitions between payment modes within a single app, simplifying financial transactions.
  5. Instant Transactions: Popular UPI apps have demonstrated exceptional efficiency in facilitating quick and instant transactions, eliminating unnecessary delays or complications.
  6. Effortless Transaction History Review: Easily monitor spending across various payment modes by accessing integrated transaction histories across credit cards and bank accounts within UPI applications.

UPI-Compatible Bank Credit Cards

Considering whether your bank’s credit card can integrate with your UPI ID? Currently, UPI integration exclusively supports RuPay credit cards. Notably, VISA or MasterCard credit cards cannot be linked.

RuPay credit cards are offered by the following banks:

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

Rest assured, more banks are actively working to offer UPI integration with credit cards.

Additionally, several UPI applications support this integration:

  • BHIM
  • CRED
  • CanaraA1
  • Gokiwi
  • Google Pay
  • PayZapp
  • PhonePe
  • Slice
  • Mobikwik
  • Paytm

Selecting UPI applications with positive reviews is advised to avoid financial losses or data compromises.

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