Turn every UPI payment into rewards with your credit card

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Why link your credit card to UPI

Payment via UPI is fast, convenient, and picking up steam. However, something you might be unaware of is that crediting your credit card against your UPI ID can help you collect rewards on every payment. Unlike debit cards or net banking, payment via credit cards through UPI can earn you reward points, cash back, or miles, depending on the scheme of your card. This is a simple way to make your regular payments rewarding.

How it works

To start earning, link your credit card to your UPI ID from your bank mobile app or any UPI-enabled application. After the linking, you can pay bills, shop online, or send money directly through your credit card, while the UPI platform facilitates the transaction hassle-free. Every eligible transaction then earns reward points or cashback according to your card policy. This way, your normal payments like grocery shopping, utility payments, or even group spending with friends can add up to quite nice rewards down the road.

Advantages greater than rewards

Pay with your credit card using UPI and you gain more than rewards points. It is likely safer since UPI payments must be verified by your app PIN, and you never need to share your card number at multiple merchants. You may also have all transactions in one place and track expenses more easily. And the rewards can typically be converted into travel, shopping, or statement credits so you'll have flexibility with your benefit.

Tips for maximizing rewards

Not every transaction and credit card rewards equally. Check your card details for UPI transactions, point limits, and merchant partners. Certain cards offer extra points for frequent payments like subscription or bill payments. Maximizing these payments by strategically stacking them can double rewards without increasing spending. Clear your credit card payment on time to avoid interest charges, so your rewards cannot fund additional charges.

Potential limitations to be aware of

Certain banks and apps may restrict certain categories of credit cards or put UPI payment limits on transactions. Rewards can also differ by merchant category or have a month's limit. One has to keep a watch for these limits so one is not surprised and is able to devise better payment strategies.

FAQs

Q: Will all credit cards be possible to be associated with UPI for rewards?

Large banks' major credit cards can generally be associated, but check with your bank or card issuer.

Q: Do I earn rewards if I make small payment through UPI?

Yes, rewards are typically earned on all such eligible transactions, although there are transaction minimums on some cards.

Q: Is there a greater expense associated with making a payment using a credit card through UPI?

In general, there is no extra charge, but verify whether your bank is levying a charge for particular transactions.