January 17, 2026 · 5 mins read
Santosh Kumar
Many individuals are curious if it is feasible for them to send money directly from a credit card to their UPI account, especially when they require accessible funds in a quick manner. Given that UPI has become the most common means of transferring money between individuals and businesses, it stands to reason that one would expect a credit card to be a source from which funds may be accessed. As a result of the contrasting nature of credit card transactions versus UPI transactions, there are limitations regarding how credit card funds may interact with UPI transactions.
The direct transfer of funds from a credit card to a UPI account is not typically possible in most instances, as UPI is designed to facilitate the transfer of actual cash from one bank account to another, while a credit card is considered a loan or a line of credit. Due to the fact that credit cards represent borrowed money, most UPI services do not permit direct person-to-person payments from a credit card. However, you may be able to use a credit card to indirectly pay someone with UPI by first transferring the credit card funds into a bank account and then using UPI to access those funds. These options typically come with additional fees and accrue interest immediately.
UPI is currently designed to send actual funds from one bank account directly to another bank account in real-time. Funds sent via UPI come directly from the sender's bank account. This is in contrast to credit cards, which do not transfer the user's funds but instead represent a loan that must be repaid. The combination of these two methods of transacting without proper differentiation creates confusion, potential misuse, and regulatory concerns.
Banks and regulators support a clear separation of payments and access to cash. Credit card payments are viewed as being for goods or services, whereas credit card transfers to bank accounts are classified as cash advances. Cash advances generally come with high costs due to interest charges, higher fees, and tighter credit terms than those associated with a typical purchase. A straightforward transfer method between credit cards and UPI would create further ambiguity as to whether a member is spending or borrowing cash.
Also Read: How to Create a UPI QR Code for Your Shop or Business?
Certain platforms allow individuals to take funds from their credit cards and deposit them into their bank accounts through specific programs offered by the service. The funds that are transferred from a credit card to a bank account can be used as though they were an everyday bank balance if they are then used for UPI transactions. However, using these types of programs tends to come with fees for processing, cash advances, and a high-interest rate that will begin to accrue immediately. In contrast to traditional purchases made on credit cards, these funds moved via credit card to your bank account will not include an interest-free period. Therefore, because of the costs involved, they are not an option that should be utilised regularly.
When considering a method that promises to enable you to transfer money from a credit card to a UPI account, make sure you review the contract in detail to get information about fees, interest, rules for repayment, and time for settlement. While many companies tout these features as "convenience," the long-term cost of these services can be expensive.
Also Read: UPI vs Wallet Payments: Which One Should You Use?
When selecting a financial service that is credit-based, one important factor is the level of transparency and reliability of the company. For example, one company that is attempting to improve the way people use credit is ZETAPP, a platform that offers a wider range of information about credit processes and transactions to help users make informed decisions about how they will use credit. Regardless of what financial service you choose, always understand how the financial institution will categorise your transaction and what it will cost you.
Credit card to UPI transfers do not usually take place directly between individuals, as UPI's primary function is as a payment system for direct bank transfers (DBTs).
Yes, when you use your credit card to make an online payment at a merchant location through UPI, this does not constitute a person-to-person transfer of money. While you can use your credit card to pay for purchases made at merchants using UPI, you cannot send money to another person directly using UPI.
Most credit card to bank account transactions are classified as cash advances. Thus, they will often include application and processing fees as well as immediate interest charges.
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