UPI Credit Cards: A Smarter Way To Earn Rewards On Daily Payments

From morning tea and grocery shopping to pharmacy bills and restaurant meals, many people now pay for everyday purchases through UPI. These small payments can add up over a month. Using a suitable credit card for eligible UPI payments can help you earn cashback or reward points on spending you already do. A UPI-linked credit card lets you make these payments using your credit limit instead of directly using money from your bank account.

What Is a UPI Credit Card?

A UPI credit card is a credit card linked to a UPI app. It lets you pay participating merchants by scanning their QR codes and using your available credit limit. You approve the payment with your UPI PIN and the amount appears on your credit card statement.

In India, UPI linking is available for eligible RuPay Credit Cards through supported UPI apps. The card must be eligible for linking and payments can be made only to supported merchants.

How to Link and Pay With a UPI Credit Card

You usually need to link your card only once. The steps may vary slightly depending on your UPI app.

1. Open your UPI app and select the option to link a credit card.

2. Choose the bank that issued your card.

3. Select your eligible RuPay credit card from the available options or enter the requested card details.

4. If prompted, verify your identity using the OTP sent to your registered mobile number.

5. Set a UPI PIN for the card by following the app's instructions.

Once your card is linked, scan a merchant's QR code, select the credit card as your payment method, enter the amount and approve the payment with your UPI PIN.

How a UPI Credit Card Helps You Earn Rewards

Using a credit card for eligible UPI payments can offer several benefits:

• Rewards on everyday purchases: Eligible payments at grocery stores, pharmacies, cafés and other merchants may earn cashback or reward points.

• An interest-free period: Purchases may remain interest-free until the payment due date if you meet the card issuer's conditions and pay the full amount due on time.

• Progress towards fee waivers: Eligible spending may count towards the annual spending target required to waive a card's annual fee.

• Easier expense tracking: UPI credit card transactions appear on your card statement, helping you review your spending.

• Reward redemption: Some cards offer ways to redeem accumulated points, although redemption options and conditions vary.

Check your card's terms to understand which UPI transactions qualify for rewards.

RuPay Credit Cards and Cashback Credit Cards: What's the Difference?

These terms refer to two different features. RuPay is a card network, while cashback describes a type of reward. A card can offer both.

A Cashback Credit Card on the RuPay network may let you pay participating merchants through UPI and earn cashback on eligible transactions. Check the card's terms to see whether UPI payments qualify and whether separate reward limits apply.

Where You Can Use a UPI Credit Card

Eligible UPI-linked credit cards can be used for merchant payments at participating outlets, including:

• Grocery and kirana stores

• Pharmacies and clinics

• Restaurants, cafés and food stalls

• Other shops that accept eligible UPI payments

Not every QR code accepts credit card payments through UPI. Person-to-person transfers and other restricted transactions are generally not supported through this facility. Check your card and UPI app terms for applicable fees and transaction limits.

Choosing the Right UPI Credit Card on JioFinance

JioFinance helps you compare RuPay Credit Cards and cashback cards from different banks. Before applying, consider these points:

• Reward rate: Check how much cashback or how many points you can earn on eligible UPI payments.

• Monthly limits: Look for caps that may limit your total rewards.

• Minimum transaction amount: Some cards offer rewards only on payments that meet a specified value.

• Annual fee: Compare the fee with the rewards you expect to earn.

• Eligibility: Check the requirements before choosing a card.

JioFinance also lets you check your eligibility and explore card options suited to your profile, helping you make a more informed choice.

Conclusion

A UPI credit card can help you earn rewards on eligible everyday payments. RuPay Credit Cards allow eligible users to link their cards to supported UPI apps, while a Cashback Credit Card on the RuPay network may offer cashback on qualifying purchases. Compare reward rates, fees and limits before choosing a card. JioFinance makes it easier to explore options from different banks and find one that fits your spending habits. Paying your full bill on time helps you avoid interest that could reduce your rewards.

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