Can We Link Credit Card to UPI?: Understanding the Pros and Cons of Linking Credit Cards to UPI!

Can We Link Credit Card to UPI

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UPI Link to Credit Card

Can We Link Credit Card to UPI: In recent times, the Reserve Bank of India (RBI) has given its nod to the integration of credit cards with UPI, marking a significant development in the realm of digital payments. This article aims to delve into the advantages and disadvantages associated with linking credit cards to UPI, shedding light on the intricacies of this financial innovation.

Benefits of Linking Credit Cards to UPI

Multiple Transactions Transparency

When you link your credit card to UPI, all transactions become visible on your credit card statement, providing a comprehensive overview of your spending.

Time to Repay

Unlike immediate deductions from bank accounts, linking credit cards to UPI allows users a credit window for payments, providing flexibility in managing repayments.

Credit Card Link to UPI: Rewards and Incentives

Many credit cards offer rewards, cashback, or other benefits specifically for UPI transactions. Users stand to gain additional perks by leveraging these incentives.

Convenience at its Best

The integration of credit cards with UPI streamlines transactions, offering users a hassle-free and swift payment experience. Virtual cards, a relatively underutilized feature in India, gain prominence through UPI, especially with the introduction of Rupay’s retail virtual cards.

Wider Acceptance

UPI’s widespread acceptance across various platforms and merchants ensures that users can make payments seamlessly using their linked credit cards.

Disadvantages of Linking Credit Cards to UPI

Limited to RuPay Credit Cards

An important limitation to note is that the option to link credit cards to UPI is currently only available for RuPay credit cards, excluding popular networks like MasterCard, Visa, or American Express. RuPay Credit Card on UPI

UPI Payment Through Credit Card Charges: Transaction Fees for Merchants

Merchants face a Merchant Discount Rate (MDR) when users opt for credit card payments on UPI. This could discourage some merchants from enabling the credit card linking option due to increased costs.

Can We Link Credit Card to UPI for Merchant Transactions

As UPI transactions are generally free, merchants may choose to disable credit card acceptance on UPI to avoid extra charges. This can lead to instances where users’ UPI credit card payments are not accepted.

P2P Payment Limitations

The use of UPI on credit cards is not feasible for peer-to-peer (P2P) payments, especially when dealing with small merchants who operate with individual UPI IDs.

How to Make UPI Payments Using Credit Cards: A Step-by-Step Guide

To make UPI payments using credit cards, follow these steps:

Download the UPI-enabled mobile app

Choose a UPI-enabled mobile app and download it on your phone.

How to Link Credit Card to UPI

In the ‘Add Payment Method’ section, select ‘Credit Card’ and enter your credit card details, including the card number, CVV, and expiry date. Verify the details by entering the One Time Password (OTP) sent to your registered mobile number.

Create a UPI ID with a credit card

Go to the ‘Profile’ section in the app and select ‘UPI ID.’ Create a unique UPI ID comprising letters and numbers.

Initiate a credit card UPI payment

Log in to your account, choose ‘Send Money,’ enter the beneficiary’s credit card UPI ID or bank account details, specify the amount, select ‘Credit Card’ as your payment mode, and confirm the transaction.


In conclusion, while linking credit cards to UPI offers unparalleled convenience, users must be cognizant of the limitations and potential risks involved. By understanding both the advantages and disadvantages, individuals can make informed decisions about whether to leverage this integration for their digital transactions.

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