RBI allows Linking Credit Cards with UPI : Here’s How it will Benefit Credit Card Users

(i) One of the main benefits of this integration is the access to immediate funds that comes with a credit card. Users will be able to make UPI payments, even when they do not have sufficient funds at that point in time. With this integration, users relying mainly on credit cards will get wider accessibility to make payments via UPI through a Buy Now Pay Later facility.

Note: Credit card linked UPI transactions process will follow UPI standard transaction limits.

(ii) Though many users already own credit cards and debit cards, paying with cards requires the users to carry the card everywhere, swipe, and sometimes authenticate with OTP. On the other hand, UPI offers the convenience to make payments using your mobile phone which most consumers have with them at all times. They just need to scan the code or enter the mobile number of the recipient in order to make a transaction.

(iii) Linking a credit card with your UPI app offers you wider accessibility to shop and purchase. This is because, while it could be challenging to find POS machines for payments, you can find UPI QR codes even at smaller shops and services.

(iv) Via the partnership of UPI and credit cards, you can consolidate multiple online payments related to bill payments, shopping bills, and small merchant transactions at a single platform. Thus, you are saved from the hustle of managing multiple financial apps and tracking your transactions.

(v) UPI transactions are processed in no-time. Thus, via the credit card UPI integration, immediate funds and speed combine together to provide instant aid in emergency situations.

(vi) Just like credit cards, nowadays UPI apps also come with applicable offers and discounts from time to time, across different merchants for shopping and travel bookings. Thus, linking a credit card to UPI can be helpful, as you can avail a great offer, even when you have limited funds at that point in time.

(vii) In comparison to a regular UPI payment linked to your savings account, credit card UPI payments are more rewarding. This is because credit cards come along with rewards and cashback, and using them frequently helps you earn more. Thus, easy access to UPI payments, and rewards on credit cards, can help you save more.

(i) Hassle-free process: Linking your credit card to UPI is hassle-free, as it is just a one-time process. For making payments via this method, you do not need lengthy passwords or login details.

(ii) Secured Transactions:  Credit linked UPI payments are enhanced with double the security features of both UPI & credit cards. UPI payments are secured with factors like two-factor authentication, biometric verification, security PIN, etc. On the other hand, a card comes with fraud protection covers and limited risk of unauthorized transactions. Thus, with the integrated transactions, you avail double the secured features.

(iii) Contactless payments have been an emerging credit card feature for a long time. However, UPI-linked credit card payments have added more to the contactless feature, by dismissing the role of ‘tap’, ‘touch’, and punch buttons. Thus, your credit card payments are more contactless than they have ever been.

To link your RuPay Credit Card with a UPI app, follow the steps as mentioned below:

• Download the UPI app from the app store or play store
• Register your account or Login with your passcode and select your bank account
• Now, navigate to your profile and click on bank account and then choose ‘Add account’
• Here, select option ‘Credit Card’ and then credit card provider
• To proceed, select your credit card from the list of credit cards offered by the provider and click on ‘Confirm’
• Next, click to view accounts and enter your card details such as last 6 digits, expiry date, OTP received on your registered mobile number, and Credit card PIN
• Lastly, set your UPI PIN

To make a UPI payment using credit card via app such as Google Pay, follow these steps:

• Scan merchant UPI QR code
• Enter the required amount and select the credit card account
• Select your linked RuPay credit card account and then enter the UPI PIN

While credit cards come with a lot of conveniences, you must always ensure using them carefully. Understand that, it is only the responsible usage of a credit card, that can help you maximize the benefits it offers. Wider accessibility or access to immediate funds often comes with a risk of overspending, which can lead to increased credit card bills, which if not paid on time, can levy hefty finance charges. Once you start using this facility, you should keep a track of the transactions you put on your credit card. Besides, you should spend only as much as you can afford to repay back on time and ensure responsible usage.