Can You Pay Your Credit Card Bill Through Any UPI?

Today, UPI has fundamentally changed how people in India conduct their daily financial transactions, from grocery shopping to subscription services, and has quickly become a go-to option for consumers who want a quick and easy way to complete their transactions. However, although credit cards continue to be one of the best ways to manage your budget, earn rewards, and build credit, many consumers still have an important question: Can you use any UPI app to pay my credit card bill?

Although all UPI apps allow for credit card bill payments, not every UPI app is compatible with all credit cards, nor do they offer the same functionality. By educating yourself on how the credit card bill payment process works, you can reduce your chances of having a failed transaction, a delay in processing a payment, or unnecessary worry about making a late payment to your credit card company.

So while many UPI apps will allow users to pay their credit card bill through them, there are limitations based on the credit card issuer, the UPI application, and the credit card payment option (3rd-party biller vs direct).

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How UPI Credit Card Bill Payments Work

The primary function of UPI was to allow users to instantly send money from one bank to another. UPI now also facilitates bill payments (e.g., utility bills) and other financial services, such as paying off your credit card bill.

When someone pays their credit card bill with UPI, the actual transaction is processed by the biller's system, so the UPI app itself is just an interface for the user to make the payment to their credit card company. Payments are not necessarily instant.

While some banks will reflect the customer's payment immediately (in real-time) within the customer's available balance, other banks may take hours or even the entire next business day to update the customer's balance.

Moreover, this lack of standardisation means that not all UPI apps support paying with a particular credit card provider.

Also Read: What Is GSTIN? Format, Structure, and Meaning Explained

Why Don't All UPI Apps Support All Credit Cards

UPI has become synonymous with a universal payment system, but in fact, the UPI ecosystem includes many UPI-enabled apps which integrate with only those billers and financial partners that the app developers have contracted directly with. Some apps have established relationships with certain banks or card providers, while other apps rely on a third party for access to these services. Because of this distinction, it is possible that you may pay your bills with a credit card through some apps, but you cannot do so through others.

Additionally, security policies appear to impact the number of apps that can be used for bill pay as well. For instance, many banks that use tighter security controls will not allow as many apps to process their bill payments.

Lastly, regulatory compliance impacts UPI apps as well. All payment apps must comply with governmental regulations, but not all payment apps comply with all types of financial transactions.

Also Read: GST for E-Commerce Sellers: Rules & Compliance Checklist

Things to Check Before Paying Your Credit Card Bill via UPI

1: There are a few things to check before using UPI to pay for your credit card.

2: Will your UPI app work with your Credit Card Issuer

3: Whether the payment is an instant or delayed settlement, and if there are convenience fees or service charges associated with UPI transactions.

4: How the payment will appear on your Credit Card statement,

5: Whether you can make partial payments using UPI or only full payments. Once you've verified these details, you will avoid any future confusion.

Also Read: Annual Fee vs Lifetime Free Cards

Choosing a Reliable Platform

The use of a reputable credit management platform is an important consideration when managing credit. You want to work with an application that provides open communication and is both secure and easy to use.

ZETAPP is a platform that aims to make it easy for users to interact with credit products. Their goal is to make it easier for users to interact with credit products by providing a more intuitive experience while providing clear information about fees, turnaround times and repayment behaviours. When evaluating any credit management platform, always assess the compatibility of the platform with your financial institution, the platform’s security standards, and the quality of customer service.

Also Read: Credit Card Cash Advance

FAQs

Can I pay my credit card bill using any UPI app?

You cannot use all UPI apps to pay your credit card bills. You need to check if your specific app can make bill payments to your specific credit card provider.

Are UPI credit card bill payments instant?

Some payments will appear immediately, while others will take hours, days, or even several. The timing varies depending on your bank, the type of payment system being utilised, and the processing system used.

Is there any extra charge for paying credit card bills through UPI?

Some apps charge a convenience fee on credit card bill payments; others do not charge this fee. Each platform and card issuer is different in this regard.

What happens if my UPI payment fails but the amount is debited?

In most cases, a reversal of the incorrect amount charged will occur automatically within a period of a few business days. If it is not reversed, you can reach out to your bank or UPI app support for assistance.