How to Make UPI Payments Using Credit Card?

Digital payments have become the need of the hour and UPI (Unified Payments Interface) has emerged as a convenient and secure mode of transaction. With the facility and convenience to link various payment methods, such as bank accounts, credit cards, and debit cards, the UPI payment mode offers flexibility and ease of use. This blog will offer a complete understanding of UPI credit card payment along with the benefits of using credit cards for UPI payments. Let’s get started.

Understanding UPI Payments

Before diving into the process of making UPI payments using credit cards, let’s briefly understand what UPI is. UPI is a real-time payment system that facilitates instant money transfer methodology between bank accounts through mobile devices. It was developed by the National Payments Corporation of India (NPCI). It rules out the need for traditional payment methods like cash or checks, which thereby allows individuals to make seamless transactions digitally.

How to Link Credit Cards with Third Party UPI Payment Apps?

Step 1: Download and Install a UPI-enabled Mobile Application

Install a UPI-enabled mobile application of your choice from your smartphone’s app store to get started. There are several UPI apps available, such as Google Pay, PhonePe, and Paytm, that offer seamless UPI payment options.

Step 2: Link Your Credit Card* to the UPI App

Once you have installed the UPI app, launch it and navigate to the settings or profile section. Select “Credit Card” as an option to link a payment method. Enter the required details, including your credit card number, expiry date, CVV, and the OTP sent to your registered mobile number for verification purpose.

*Currently only available with RuPay credit cards

Step 3: Create a UPI ID

After successfully linking your credit card, proceed to create a UPI ID. This ID will act as a unique identifier, which is also known as a virtual address, linked to your bank account and enables you to send and receive money through UPI without any hassle. Choose a unique UPI ID and follow the app’s instructions to complete the setup process.

Benefits of UPI Payments Using Credit Cards

Making UPI payments using credit cards offers several advantages:

1. Convenience:

By linking your credit card to any UPI app, you can perform transactions without the need to carry your physical credit card. All you need is your mobile device to initiate and complete the payment process in a seamless fashion.

2. Rewards and Offers:

Many credit cards offer rewards and cashback on transactions. By using your credit card for UPI payments, you can earn reward points and enjoy discounts at partner merchants, making your transactions more rewarding.

3. Flexibility:

Credit cards provide a short-term credit facility, allowing you to make UPI payments even when you have inadequate funds in your bank account. This flexibility can be particularly beneficial in times of financial emergencies.

4. Credit Score:

When you are a responsible credit card user, it consequently demonstrates your creditworthiness and financial discipline, which increases your chances of getting credit on better interest rates and terms in the future.

Best Practices for UPI Payments Using Credit Cards

While making UPI payments using credit cards, it is essential to keep a few best practices in mind:

1. Monitor Your Credit Card Usage:

Review your credit card statements in a timely manner to track your expenses and make sure that there are no unauthorised transactions. This will help you maintain financial discipline and avoid any sudden surprises when your credit card bill arrives.

2. Set Transaction Limits:

Some UPI apps allow users to set transaction limits, providing an additional layer of security. Consider setting limits to control the amount you can transfer using UPI payments, reducing the risk of potential financial loss in case of unauthorised access to your mobile device.

3. Secure Your Mobile Device:

Use a strong password or biometric authentication to protect your device from hackers and scams. Avoid sharing your device with others and install security updates regularly to safeguard your personal and financial information. Also, make sure you download apps from the official app stores of Android or iOS systems and avoid installing apps from unknown sources.

ALSO READ: How Does Contactless Payment Work?

Conclusion

Making credit card UPI payments offers convenience, rewards, and flexibility in managing your expenses. By following the step-by-step process mentioned in this guide and adopting best practices, you can enjoy seamless and secure credit transactions using UPI. Embrace the digital revolution in payments and leverage the power of UPI and credit cards for a hassle-free payment experience. Please refer to the respective UPI app and credit card issuer for the most up-to-date and accurate instructions on making UPI payments using credit cards.

FAQs

Can we make UPI payment with a credit card?

Yes, you can make UPI payments with a credit card. However, currently only the Rupay Credit Card has this facility in India. Banks that are associated to this payment network, allow users to make UPI payments with a credit card.

How can I pay someone with a credit card?

You can use your credit card to shop at online or offline stores. Alternatively, if you have RuPay credit card you can also link it to your UPI app and make payments.