Credit Cards on UPI: Your questions answered

Summary: Linking Credit Cards to UPI has become a reality. Discover how to link Credit Cards to UPI and the advantages you get for doing so. Also, learn about the restrictions and the transaction limits on UPI payments through Credit Cards.

09 Nov 2023 by IDFC FIRST Bank

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In a move to make digital transactions in India seamless, the Reserve Bank of India (RBI) has allowed for the addition of credit cards as a payment mode on the United Payments Interface (UPI). The addition of credit cards to UPI enables you to make payments directly from your credit card, which until now was only available from your bank’s savings account. So, how to link credit cards to UPI and what are the associated terms and conditions? Let’s find out.

Linking UPI with credit cards: FAQs

Ever since this facility was made available, several questions have been making rounds in the minds of credit card holders. We’ve addressed some common ones in this article.

Can we really link credit cards to UPI?

Yes, you can. That said, you can only link RuPay credit cards issued by banks with UPI. For example, FIRST Power and FIRST Power+ Credit Cards by IDFC FIRST Bank.

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How to link a credit card to UPI?

The linking process is very easy. While the specifics may vary across UPI apps, on most occasions, you need to -
- Open your UPI app
- Click on account and select 'Add Credit Card'
- Enter your card details, including card number, CVV number, and expiry date
- You will receive an OTP on your registered mobile number. Enter the OTP for verification
- Set a UPI PIN for the linked credit card
Post verification, your card links to the UPI app.
Can I send money from a credit card to an individual’s bank account via UPI?

No, you can’t. With this facility, you can only pay merchants by scanning the QR codes at their respective counters or on their online payment portals. The amount will be paid from your credit card instead of your s a v i n g s account.
What are the restrictions on using credit cards for UPI payments?

While you can make UPI payments at online or physical merchant outlets using your credit card, other kinds of payments are restricted. These include:
- Money transfers from your RuPay credit card to an individual’s UPI ID
- Payments to other credit-card-linked UPI IDs
Can I link a non-RuPay credit card to UPI?

Currently, you can only link RuPay credit cards to UPI. However, banks like IDFC FIRST Bank are offering digital RuPay versions of existing credit cards (FIRST Digital Credit Card) that you can link to UPI. The credit limit will be the same as the primary credit card and shared between both cards. This digital offering allows you to enjoy the convenience of UPI payments while obtaining free credit for up to 45 days.
Is there a limit on credit card payments via UPI?

The standard limit for UPI payments through credit card per transaction is fixed at Rs. 1 lakh for most merchants. The limit can go up to Rs 2 lakhs for verified merchants in specific categories.
Will linking credit cards to UPI affect my credit score?

The only way it affects your credit score is how you pay your credit card bills. If you pay your bills on time, making UPI payments via your credit card will help improve your credit score. Credit cards on UPI work just like regular credit card payments, if a little more convenient, since you don’t need to enter the CVV and OTP. As with regular credit card use, you need to pay the bill on time to ensure your credit score remains intact.

Also read - How to make your Credit Card an effective line of credit?

Link your IDFC FIRST Bank Credit Cards with UPI

Embrace a new world of convenience with IDFC FIRST Bank Credit Cards. With IDFC FIRST Bank RuPay Credit Cards, i.e. FIRST Power and FIRST Power+ Credit Cards, you can pay on credit via all major UPI apps. This feature enables you to take charge of your financial transactions with ease and unparalleled speed.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.