How To Make a UPI Payment Through Credit Card

The ability to make UPI payments with a credit card has recently become available and features the convenience of both UPI's instantaneous nature and the flexibility of being able to use your credit card instead of going straight through your bank account, which was the only way to pay using UPI until now (with your bank account always being linked to UPI). By providing additional access to UPI through your credit card, you can use your available credit limit, as long as all three parties (the credit card company, your bank and the UPI app) agree to engagement.

You will first need to choose which UPI application you wish to use that allows the linking of credit cards. Each UPI application is different, so not every UPI application will support credit cards. However, the applications that do allow this may only support specific credit card issuers and/or networks. Once you can identify an application that allows you to link your credit card, you can then input your credit card details into the application and complete the identity verification process (usually via an OTP sent to your registered mobile number).

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Once you have verified your identity, you will be prompted to set up a UPI PIN specifically for credit card payments. This will be different from your normal PIN and will only be used to approve payments made with UPI using your credit card. Once all three steps have been completed, your credit card will be available as a payment option in your selected UPI application.

When you make a payment with a credit card through the UPI system, it works much like making a normal UPI payment in terms of the transaction process. You would still need to either scan your own QR code or enter your unique UPI ID, select your credit card as your funding source and also authorise the payment with your UPI PIN. The funds received by the merchant will still be processed as they normally would; however, rather than debiting funds from your bank account, the funds will be charged to your chosen credit card.

These transactions will appear on your credit card statement just like all of your other credit card purchases. You must pay the total amount owed from that credit card statement based on your credit card's billing cycle. If you pay the entire amount shown on your statement before the statement due date, you will not incur any interest charges. Should you choose to carry a balance forward, interest will accrue in accordance with the terms associated with your credit card.

Also Read: How to Apply for a ₹2,000 FD Credit Card on ZET App: A Step-by-Step Guide?

Not all UPI transactions will be available to the user when using a credit card; certain transactions may require that the user have a bank account to support them due to UPI regulatory requirements and the policies of UPI platforms. Additionally, there may be limits placed on how much you can transfer per transaction and how often you can transfer funds throughout the day.

Choosing a platform for payments is an important consideration, so when searching for a reputable company, you should pay attention to three things: clarity in communications, security from fraudsters, and user friendliness of their website or application. ZETAPP does all three. Their goal is to simplify how people use credit-related products, but also be completely transparent about the costs, repayment periods, and how to use credit-related products safely and correctly. You can now pay using UPI via a credit card! This means you'll have more flexibility and convenience when making payments; however, you must understand how your billing cycle, interest rates, and repayment cycles work. Doing so will maximise your benefit from UPI payments via credit card and will help you avoid falling into a cycle of unmanageable debt.

Also Read: Can Students Get a ₹2,000 FD Credit Card? A Complete Guide

FAQs

Can I use any credit card for UPI payments?

UPI Payments through a credit card: Are there any special rules? Two types of credit cards are supported through UPI, so you will only be able to create UPI connections using a credit card issued by a bank on one of the supported networks (Rupay or Visa).

Do UPI payments through a credit card affect my credit score?

Yes, but only if you make your payments on time. Depending on how you used your credit card, your UPI payments will contribute to your credit card balance. If you pay your UPI payments on time, this will positively affect your credit rating; however, if you miss a payment, then this will negatively affect your credit rating.

Are UPI credit card payments treated as cash advances?

Most of the time, UPI payments made using a credit card are considered standard purchases instead of being treated as cash advances. However, each card issuer has its own policy regarding how it will treat these payments; therefore, please check your card issuer's terms.