Turn everyday UPI payments into reward points with your credit card

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• RuPay credit cards can now be linked to UPI apps for QR code payments
• Reward points are earned only on merchant payments, not peer-to-peer transfers
• Daily transaction limits and standard credit card charges still apply

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So far, UPI payments and credit card rewards have been two very separate things. UPI worked for bank accounts, while credit cards were for swipes and online checkouts. However, all that changed when RuPay credit cards were allowed to be linked to UPI apps.

Now, you can scan a QR code at a neighbourhood store and pay through UPI using your credit card instead of your bank account. And yes, in many cases, you can earn reward points on those payments.

Here’s how it works and what you need to watch out for.

Step 1: Make sure your card is eligible

At the moment, only RuPay credit cards can be linked to UPI. Your regular Visa and Mastercard credit cards cannot be used on UPI yet.

Most major banks in India now issue RuPay credit cards, including HDFC Bank, SBI Card, ICICI Bank, Axis Bank and others. If you do not already have one, you can apply for a RuPay variant specifically for UPI usage.

Step 2: Link your card to your UPI app

Open your UPI app such as PhonePe, Google Pay, Paytm or BHIM.

Go to the “Add payment method” section and choose “Credit Card.” Select your RuPay credit card, verify with an OTP and set your UPI PIN. Once linked, the card will show up as a payment option when you scan a QR code.

You can then choose the credit card instead of your bank account while paying.

Step 3: Understand where rewards apply

Many people get confused here. Reward points can only be earned when you pay a merchant or a registered business. That includes scanning a shop’s QR code and paying a registered business.

Reward points cannot be earned on peer-to-peer transfers, such as sending money to a friend’s UPI ID. You also typically do not earn points when you load money into your online wallet or transfer rent through UPI.

Many banks classify UPI credit card payments as retail transactions, which means you earn reward points just like you would on a swipe. However, some

banks give you less reward points on UPI compared to on regular card spends. Always check the terms of your reward points with your bank.

Step 4: Know the limits and charges

Banks also have a daily limit as to how many UPI credit card transactions you can do. Also, while most banks do not charge extra for using a credit card on UPI, the transaction still counts towards your credit limit.

If you do not pay your credit card bill in full by the due date, interest will apply just like any other card purchase.

How to maximise rewards

Use your RuPay credit card on UPI for routine spends such as groceries, pharmacy bills, dining and small retail purchases. These are categories where you would normally pay through UPI anyway, so shifting them to a rewards-earning credit card makes sense.

At the same time, avoid using it for cash-like transactions or anything that might attract fees.

The real benefit of credit card on UPI is simple. You continue using the QR system everyone accepts, but instead of just spending from your bank account, you earn points or cashback on transactions you were already making.

Used responsibly, it is one of the easiest ways to squeeze more value out of everyday spending.