The Easiest Way to Do UPI Transactions with Your Credit Card

UPI transactions have become increasingly popular in India for its speed and convenience. Since its launch in 2016, UPI has revolutionized the way people transact digitally. With the government’s Digital India initiative, UPI transactions have skyrocketed, especially during the pandemic when everyone is trying to avoid physical contact. But did you know that you can now link your credit card to your UPI ID and make transactions with it? In this article, we will explore how you can do UPI transactions with your credit card.

First, let’s understand what UPI is and how it works. Unified Payments Interface, a government-backed payment system, enables users to transfer money instantly between bank accounts. Users can link multiple bank accounts and use a single UPI ID to make transactions. This real-time payment system operates 24×7, facilitating seamless transactions involving credit card transactions. The inclusion of credit card functionality further expands the versatility of the UPI platform for users.

Step 1: Choose a UPI-enabled app

To link your credit card, you need to choose a UPI-enabled app that supports credit card payments. Some popular UPI-enabled apps are Google Pay, PhonePe, and Paytm. These apps allow you to link your credit card and make UPI transactions seamlessly.

Step 2: Add your credit card to the UPI app

Once you have chosen a UPI-enabled app, the next step is to add your credit card to the app. To do this, you need to follow these simple steps:

Open the UPI app and click on the ‘Add Bank Account’ option.

Select ‘Credit Card’ as the bank account type.

Enter your credit card details such as card number, expiry date, and CVV.

Once you have added your credit card, the app will send an OTP to your registered mobile number for verification.

Enter the OTP, and your credit card will be linked to your UPI ID.

Step 3: Make UPI transactions with your credit card

Once you have linked your credit card to your UPI ID, you can start making UPI transactions with it. Here’s how you can do it:

Open the UPI app and select the ‘UPI-Payment’ option.

Enter the UPI ID of the person you want to send money to.

Enter the amount you want to transfer.

Select your credit card as the payment option.

Enter your credit card details such as card number, expiry date, and CVV.

Once you have entered the details, the app will send an OTP to your registered mobile number for verification.

Enter the OTP, and your UPI transaction will be complete.

Advantages of doing UPI transactions with your credit card

1. High credit limit – Credit cards come with a pre-defined credit limit, which allows you to make transactions even when you don’t have sufficient balance in your bank account. This can be helpful in situations when you need to make a large payment urgently.
2. Rewards and cashback – Credit card companies offer rewards and cashback on every transaction made using the credit card. This can help you save money even when you are spending.
3. Interest-free period – Most credit cards offer an interest-free period of up to 45 days, which means you can make transactions without worrying about the interest charges. However, it is important to pay off your credit card bills before the due date to avoid any penalties.
4. Build credit score – Using your credit card to make UPI transactions can help you build your credit score. Credit card companies report your credit card usage to credit bureaus, which helps in building a positive credit history.
5. Convenience – Linking your credit card to your UPI ID eliminates the need to go through the hassle of entering your bank account details every time you make a transaction. This makes UPI transactions with your credit card more convenient and time-saving.

Conclusion

UPI transactions, including UPI for credit card, have become the go-to payment method for most Indians. The ease and convenience of UPI transactions make it a preferred mode of payment, especially in the pandemic situation when contactless transactions are essential. By linking your credit card to your UPI ID, you can enjoy the benefits of both UPI transactions and credit card usage. With the high credit limit, rewards and cashback, interest-free period, and credit score building, doing UPI transactions with your credit card is a win-win situation. So why not link your credit card to your UPI ID today and enjoy seamless transactions!