UPI Credit Card: The use of UPI payment is increasing in the country. Whether it is buying everyday goods or making online payment, UPI helps us everywhere. You can also get cashback through UPI payment. For this, you have to use your credit card smartly.
Now you can make Unified Payments Interface (UPI) payments not only with debit card and bank account but also with credit card. In the year 2022, RBI allowed linking of RuPay credit card with UPI. Now Visa and Mastercard are also gradually joining this system. Transactions through UPI are increasing rapidly. In such a situation, seeing the increasing popularity of UPI, now credit card users are also choosing the option of digital payment for purchasing. Using credit card is very easy during UPI payment.
You can link RuPay credit card to Unified Payments Interface (UPI). With which you can also get rewards on everyday transactions. Many big banks have introduced RuPay variants of their credit cards. Which include versions of their Visa or Mastercard cards. Which can be used for UPI payments. Some have even launched exclusive UPI credit cards offering 1.5-5% cashback.
Pay using credit card through UPI
To make UPI payment through credit card, first scan the QR code or select the option of ‘pay phone number’ or ‘pay contacts’. Enter your UPI ID or go to the related payment option on the app. If you want, you can also choose the option of ‘self-transfer’, through which you will be able to transfer money from one account to another. After verifying the QR code and phone number of the app, enter the amount to be transferred and select the credit card option for payment. Now your payment will be successful only after entering the PIN. UPI credit card is very beneficial especially for users of tier-II and small cities. Many businessmen here do not have POS machines, but can easily make payment through UPI.
Benefit of rewards and cashback
The biggest advantage of a credit card is that it gives more rewards than a debit card. If you have linked your RuPay credit card to UPI, then you can get reward points or cashback on every UPI transaction. If you link your credit card to UPI, then it also works as a backup payment option for you. You benefit from this when you have to make a big purchase or you have to buy something in an emergency.
Virtual Credit Card Launch
In view of digital payments, many banks have also launched virtual credit cards. Credit cards have been specially designed to give reward points through UPI. For example, Axis Bank SuperMoney RuPay Credit Card gives 3% cashback on UPI payments. You can earn a maximum of ₹500 cashback every month. This card is a co-branded card of Axis Bank and Flipkart Group’s fintech company Super Money. Similarly, you can make payments through HDFC Tata Neu RuPay Card, Yes Bank Klick Card (with Kiwi App) and Jupiter Edge CSB Card.
Also keep these things in mind
Please note that Merchant Discount Rate (MDR) is charged on UPI payments through credit card, whereas this charge is not charged on normal UPI transactions. MDR is charged on payments above Rs 2,000. Due to which stores like medical and grocery discontinue this facility. However, most small merchants receive UPI payments of less than Rs 2,000, where this feature works easily.
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