What are UPI credit cards & why should you opt for them? Key advantages explained

If you are a regular UPI user and are considering linking your credit card to it, you are recommended to secure a Rupay credit card. Those who are not aware, Rupay Credit cards enable the cardusers to make payments through UPI apps such as GooglePay, PhonePe, Paytm and BHIM.

National Payment Corporation of India (NPCI) has allowed linking of UPI through credit cards issued by several banks which include SBM, Union Bank of India, Yes Bank, Axis Bank, Bank of Baroda, Canara Bank, City Union Bank, CSB, Federal Bank, HDFC Bank, ICICI Bank, Indian Bank, IDFC First Bank, IndusInd Bank, Kotak Mahindra, PNB, Saraswat Bank and RBL Bank.

Before being able to start using UPI on your credit card, however, cardholder first needs to link his/her credit card to the app he wants to use i.e., Google Pay, PhonePe, etc.

Link your credit card to UPI: Steps to follow:

I. First you need to discover credit card accounts from the issuer bank based on registered mobile number and link it to the UPI ID on BHIM app or any UPI app.

II. After linking the credit card, one can make payment by scanning the UPI QR code. The payment authentication can be done using UPI PIN.

III. It is vital to note that cash withdrawal at merchant, P2P, P2PM, card to card payments is not permitted through this functionality.

Rupay credit cards: These are some of the advantages

I. Avoiding direct debit: Unlike regular UPI transactions, Rupay credit cards allow cardholders to make payment through Google Pay, PhonePe and Paytm without having to debit the bank balance in real time.

You clear the bill in real time and at the end of the month, you are only supposed to pay your credit card bill.

II. Convenience of payment: One more advantage of UPI credit card is the convenience it offers. Almost all small and big vendors facilitate and encourage payments through UPI over credit cards. When you link your card to UPI, you get the best of both the worlds.

III. Cleaner bank statement: Typically, each small and large UPI transaction is recorded in your bank statement, however, Rupay credit card allows you to circumvent this problem as only credit card bill payment is reflected in the bank statement since transactions are routed through credit card.

IV. Fraud prevention: These transactions are relatively safer. If some suspicious activity takes place, you can flag it and dispute the same unlike in a UPI setting where amount is debited from your bank in the real time.

(Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.)