February 22, 2025 · 17 mins read
Santosh Kumar
Unified Payments Interface, UPI, is a digital platform for users to make quick and easy payments in no time via a UPI ID and a UPI PIN. Today, UPI Lite-type features help users go PIN-free, where no UPI PIN is required to make payments to other banks.
While many benefits surround UPI applications, it is important to know how to use them. In order to use the application, the user is required to have a Bank account, an Indian contact number registered with the Bank account, and finally, download any of the UPI applications available in India, such as BHIM, Google Pay, PhonePe, and PAYTN.
Banks linked to UPI applications for instant and efficient money transfers are Axis Bank, Kodak, Mahindra Bank, Bob Financial Services LTD, and many more. UPI platforms offer users cashback offers and discounts on making money transactions to other banks, attracting more citizens to this online payment trend.
To obtain a RuPay credit card from the bank, customers can apply for it online or in person. Documents that are required to obtain a RuPay credit card from a bank are
1: Proof of Identity
2: Address
3: Income
To apply for a RuPay credit card, the customer is required to follow the following steps:
1: Select a card of preference
2: Apply for a card online or in person
3: Show up with the required documents, such as ID proof, address and income.
4: Activate the card
Read More:: Rupay Credit Card UPI Charges
For customers to apply for a Rupay Credit Card online via the bank’s website, the following steps must be followed:
1: Head to the bank's website.
2: Click on the “Credit Card” section and click on "Apply."
3: Fill in personal details such as Name, Contact Number, Income, and Pincode.
4: Opt for a Credit Card, and check your eligibility.
5: Once you are approved for eligibility, enter further details such as your DOB ( Date Of Birth), Email Address, and PAN.
6: Fill up the residential address and Pincode number.
7: Fill in the employment details like “company name”, address and landline number.
8: An OTP will be received on the registered contact number.
9: Verify the contact number via the OTP.
Customers are always required to carry all the relevant documents to present to complete the process of obtaining a RuPay credit card.
1: Relevant documents such as ID Proof, Address Proof, Name, DOB, etc.
2: Customers are recommended to use a credit card EMI calculator to compare the EMI of different cards.
3: Look out for lifestyle and preferences like travel, dining and shopping.
4: Opt for a credit card and a Bank that fits the customer's requirements.
To link a RuPay Credit card to UPI apps, the user must obtain a bank's RuPay credit card and download the preferred UPI application.
1: Download and Log In to the preferred UPI application of choice.
2: Head to the “ Payments Option” menu.
3: Click on the "Credit Card" tab.
4: Fill up Credit Card details such as Card Number, CVV, Expiration Date, and the Cardholder Name.
5: Enter the OTP sent to the registered user's contact number to authenticate the Credit Card.
6: Set Up a security PIN.
7: Add money to the Wallet.
Read More:: MDR Charges on Rupay Credit Card
1: A bunch of benefits await users who have linked their RuPay Credit Card to a UPI app, and those benefits are as follows:
2: Cashbacks, Rewards and Discounts can be availed on initiating a transaction via the UPI app.
3: Contactless payments can be initiated.
4: From various sources, funds can be accessed.
5: Easy management of finance.
6: Initiate payments without having to share bank account details.
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The three types of RuPay Credit Cards are known to be:
1: Classic
2: Platinum
3: Select
All these above mentioned Credit cards are available for micro, small and medium enterprises (MSMEs).
The variety of credit cards that RuPay offers to customers are as follows:
RuPay Classic Credit Card: This credit card is great for daily transactions and for obtaining offers and good discounts.
Axis IOCL RuPay Credit Card: This is a credit card for fuel and other expenses that offers a 4% cashback on fuel.
HDFC RuPay Tata Neu Credit Card: A credit card that offers Neu Coins of 1% Value Cashback on UPI spends.
IRCTC Rupay BOBCARD: This is a co-branded credit card that offers benefits such as complimentary lounge access, rewards, and EMI Conversion.
Fibe Axis RuPay Credit Card: This credit card offers its users cashback on all transactions, which is free for life.
HPCL ENERGIE RuPay BOBCARD: A co-branded contactless credit card that allows customers to make their journey quicker, safe, secure and more rewarding.
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Visa and Mastercards are international card networks used to make payments. RuPay, unlike VISA and Mastercards, does not work internationally; it is purely made to be used domestically and around the nation. RuPay cards are known to be faster and way more secure for domestic transactions in India). VISA cards and Mastercards are known to be accepted globally.
RuPay is accepted domestically for transactions, whereas MasterCard and VISA cards are accepted globally.
RuPay has a faster processing system in India because the data is processed in India itself. Mastercards, on the other hand, have slower processing in India because the data is processed outside of the country.
RuPay is known to have higher security for domestic transactions as the data stays in India. On the contrary, Visa and Mastercard have a higher risk of data theft as they have a global reach.
RuPay also offers its customers reward points, fuel Surcharge Waivers, railway Surcharge waivers, and insurance.
Read More:: Difference Between UPI and NEFT transactions
Another quick and cashless payment method via the UPI is the QR Code. Merchants and buyers both contain a QR Code to make and receive payments. If a user wants to make a payment Via the QR Code, the following steps must be followed:
1: Open the UPI App on the Smartphone.
2: Go to QR Code Payments.
3: Scan the merchant's QR Code.
4: Enter the amount to be paid.
5: Click on “Pay”
6: The merchant account will be credited with the amount.
Mastercard and Visa cards are accepted internationally for lounge access and many other things, but in India, Mastercards function a bit slower, thanks to RuPay.
Neither VISA cards nor Mastercards can be linked to UPI as UPI is strictly for RuPay cards only.
Mastercards have a global citizen database, which makes them not applicable to UPI applications. UPI is generally made for the Indian citizen database, therefore allowing the RuPay Debit and Credit cards to link to the UPI apps.
Read More:: Can I cancel a UPI transaction?
1: Credit cards can be a major disadvantage if not utilized well, as the bank can chase the user for suspicious or malicious activities. The following factors are the credit card disadvantages that lead to debt for users:
2: High Interest Rates: Credit cards have a higher interest rate than other lending options. Interest rates can add up quickly if the payment isn't made each month.
3: Fees: Credit Cards may contain fees such as Annual Fees, Late Payment Fees, Joining Fees, Processing Fees, and Renewal Fees.
4: Debt: It is usually easy to overspend on credit cards, which can eventually lead to debt. The user's continued minimum payments can also lead to a cycle of debt.
5: Credit Score: Not using credit cards responsibly can decrease a user's credit score, which can hurt the user.
6: Fraud & Identity Theft: Credit Cards may be subject to fraud and identity theft, which can be time-consuming and costly for the user to resolve.
7: Credit cards may encourage bad habits in users, which may impact relationships.
8: Credit cards may lead the user up to the level of bankruptcy.
Credit cards can be highly beneficial for users if utilized well and paid on time to maintain a good credit score. They can be beneficial for multiple reasons, such as Rewards, Building Credit, and Protection.
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1: Credit cards offer cashback rewards and points to make purchases
2: Credit cards can help users access airport lounges, access free baggage options, and hold travel insurance.
3: Credit cards offer good discounts on groceries, fuel and dining.
1: Users can build and improve their credit score
2: s by using credit cards responsibly.
3: A good credit score can help users apply for loans such as ad mortgages and auto loans.
1: A few credit cards provide users with offers such as interest-free periods on purchases and cash advances.
2: A few credit cards are known to offer automatic insurance on purchases.
3: A bunch of credit cards provide users with extended warranties on big purchases.
Read More:: Difference Between UPI QR Code and Barcode?
The major difference between the two, a Debit Card and a Credit Card, is that a Debit Card uses your cash, whereas a Credit Card lets you borrow money up to a limit. A few more differences between the two, a Debit Card and a Credit Card are as follows:
1: Debit cards directly use funds from the bank account.
2: Debit cards can be utilized to make cash withdrawals from ATMs.
3: Debit cards can be used to pay for goods and services at POS (Points of Sales) terminals or Online.
4: Debit cards can be used domestically or internationally.
5: Spending limits can be set on debit cards in order to manage payments and expenses.
6: It can hardly lead the user to debt.
Read More:: Difference Between RuPay Credit Card and Visa Credit Card
1: Credit cards may help you borrow money for a period of time, up to a limit, and ask the user to repay it later.
2: Credit cards can be utilized to make payments for big purchases, including online and offline purchases.
3: Credit cards can be utilized to make market-related investments such as stocks and mutual funds.
4: Credit cards offer users an opportunity to make specific loan EMIs.
5: Credit Cards can be utilized for gambling expenses.
6: Credit cards hold benefits such as cashback rewards and discounts.
7: Credit cards hold high interest rate fees.
8: If credit cards are by any chance overspent, it can lead to debt.
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The integration of RuPay credit cards with UPI offers users the advantages of quick transaction processing via mobile devices combined with the ability to use credit for the purchases made. One major advantage of using the RuPay credit card integrated with UPI to make daily purchases is that the purchase is not directly deducted from the user’s bank account; therefore the user can better manage their cash flow by using UPI without incurring this payment from their bank account. A second advantage of using a RuPay credit card integrated with UPI is that it allows the cardholder to collect rewards points, cashback, or some other type of card benefit for all transactions made with a RuPay credit card that would not be available if paid out of a savings account.
Also, because of the use of RuPay as a network exclusively in India, users benefit from the availability of credit without having to pay interest during the billing cycle for short-term purchases. Furthermore, using a RuPay credit card for transactions results in less transaction fees than the use of the international card networks (i.e. Visa and MasterCard), which means more merchants can accept and/or are willing to accept RuPay credit cards.
To utilize a RuPay Credit Card in conjunction with UPI, the issuer of the Credit Card must offer their customers the ability to integrate their RuPay Credit Card into the UPI system. Also, the Credit Card account has to be active and not blocked from being used for transactions. Your Mobile Number that is associated with your Bank Account to access your RuPay Credit Card must also be registered to the UPI App you are using.
Basic eligibility to use the RuPay Credit Card on UPI also includes satisfying the Credit Card eligibility requirements established by the Issuing Bank; i.e., age limit, income level and, in the case of secured cards, maintaining a fixed deposit. All users must complete KYC formalities and also link their RuPay Credit Card using the UPI App before they will be able to make payments.
As with all other UPI Transactions, usage of RuPay Credit Cards on UPI is subject to various transaction limits as determined by each individual Bank and the Regulatory Guidelines. In many cases, Banks establish a Maximum Limit on how much you can spend in each transaction and a maximum daily limit on how much you may spend. Most Banks offer a maximum Daily Spend Limit between ₹1,00,000, however, this Daily Spend Limit may be lower depending upon whether the account holder is a New User or if they have a Secured Credit Card.
Transaction limits may also be established on a per transaction basis for high-value purchases. The limits on a per transaction basis will depend on the Bank, the Type of RuPay Credit Card you own and your Credit Profile.
You May Use RuPay Credit Cards on UPI to Make Payments in These Ways:
You can primarily use RuPay credit cards on UPI to make 'Person to Merchant' payment transactions. You can use RuPay credit cards for payment at a retail store, for placing a purchase order with an e-commerce retailer, for paying utility bills, and making payments to service providers who accept UPI. You may also set up recurring subscription payment transactions, such as those offered by OTT platforms and other subscription based services, by making payments using RuPay credit cards (if the merchant supports RuPay payment cards).
However, sending money to friends and family by way of a person-to-person transfer using RuPay credit cards is generally prohibited via UPI. Person-to-Person transfer transactions must be made using Bank Account linked UPI payments.
RuPay Credit Cards can now be linked to multiple UPI applications in order to make quick, easy and efficient payment transactions hassle-free. A few RuPay Credit Cards for linking to UPI apps are Axis Bank, Union Bank of India, IndusInd Bank, Federal Bank, HDFC Bank, Canara Bank, and Federal Bank. UPI applications such as PhonePe, Google Pay, BHIM and Paytm allow banks to get linked to the UPI Apps in order to generate a UPI PIN and a UPI ID.
Using this UPI ID and PIN, transactions can be initiated to different bank accounts. This is one of the most innovative and smart initiatives by the Indian government and its citizens to make India a cashless" economy.
Linking RuPay Credit cards to UPI comes with many benefits, such as efficient payments, instant payments, cashback and rewards, points that can be availed once a transaction is made, and so much more. Credit cards have multiple benefits but also come with disadvantages, such as late payments leading to debt and a below-average credit score.
RuPay Debit and credit cards have various differences, but both are available for significant reasons for customers. The main difference between the two is that Debit Cards use the user's cash, whereas a Credit Card helps users borrow money from the bank to later return it.
Ans: Users can link their credit cards to UPI to make payments.
Ans: The interchange fee for RuPay credit card, on UPI transactions above RS. 2,000 is at least 2%.
Ans: No. The customer does not have to pay any interchange fee for making payments via RuPay Credit Cards on UPI.
Ans: Yes. Google Pay accepts RuPay Credit Cards in order to make payments.
Ans: Yes. QR Codes are one of the quickest methods of making payments on UPI via the RuPay Credit Card.
Ans: Yes, users can now make contactless payments on the Unified Payments Interface Application via the feature UPI Lite.
Ans: If the customer is facing issues with using a RuPay Credit Card on UPI to make payments, the customer can try to activate the card or reconfirm the bank-registered contact number.
The key advantages associated with using a Rupay Credit Card for UPI Payments as opposed to a Debit Card or Bank Account include:
1: Access to credit/funding without the need for a debit from the Bank Account at the time of purchase
2: Signup Bonus/Reward Points/Cashback
3: Improved Cashflow Management by using a credit card instead of a debit card.
With regards to issuing Banks providing Rupay Credit Cards through the use of UPI Applications; most public (PSU) and some private sector banks offer Rupay Credit Cards enabled for UPI transactions. The card availability depends upon the issuing bank and its corresponding card processing technology.
Yes, there is a limit placed on the maximum amount that can be spent via UPI with the Rupay Credit Card. Most Banks instill a maximum daily limit, which varies by Bank and Card Type but usually falls between Rs. 1 Lakh.
The Rupay Credit Card on the UPI platform is intended to be used as a payment method to a Merchant only. Sending money to/from friends and family using a Rupay Credit Card via UPI is generally not allowed.
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