What is a UPI Credit Card? And how is it different from a normal credit card?
Summary
UPI Credit Card is a new way of digital payment, in which you can link and connect your credit card with UPI apps (Google Pay, PhonePe, Paytm) and make direct payment – without swiping the card. This credit card gives more power to UPI. In this article, we will know its benefits, problems and why it is so different from normal credit card.
Introduction
In today’s growing digital India, people pay more with UPI or credit card than cash. UPI has made the payment system in India very easy and fast. That is why Upi credit card is being used a lot in India and upi credit card is also called Rupay Credit Card.
Now a new update has come in UPI RuPay Credit Card which all of you must know about.
This card is based on the RuPay network of National Payments Corporation of India (NPCI). With this, you can use credit card money from UPI apps as well. And you do not incur any extra interest or charges on upi transactions and using money from your Rupay credit card through UPI is a very easy and fast system.
Let’s understand in detail what it is and how it works. What are its advantages and
disadvantages and what benefit are you going to get from knowing this?
What is a UPI RuPay Credit Card?
UPI RuPay Credit Card is a credit card which you can link and connect with UPI apps. When you scan a QR code at a shop, you can make the payment only with your credit card which is deducted from your credit limit. And it is not deducted from your bank account balance.
Meaning you use UPI but the payment is made with a credit card.
UPI RuPay Credit Card Benefits
1. Super Fast Transactions
Scan the QR code and payment is done instantly without swiping the credit card in any way. Super quick and contactless payment is done with good security.
2. No Cash Needed
There is no need to carry cash everywhere, everything is done through phone, be it shopping, emergency or any other thing, payment is made.
3. Credit Limit Use
Even when you don’t have a bank balance, you can still shop using your credit limit. You can buy anything using your credit card limit.
4. Cashback & Rewards
Many UPI RuPay Credit Cards offer cashback, discounts and rewards for payments such as groceries, fuel, QR payments and any kind of bill payments.
5. Secure Payments
UPI’s 2-step authentication system protects against fraud – there is an extra layer for safety
which protects our credit cards and us from frauds.
6. Easy Expense Tracking
You can see every recorded transaction in UPI apps – which day, how much was spent, everything is clearly understood and you have a complete account so you do not face any problem.
Disadvantages of UPI RuPay Credit Card
1. High Interest Charges
If you do not pay on time, you will be charged very high interest charges which can be quite high (up to 30% per annum) or even more. So pay the due amount before the due date.
2. Limited Credit Limit
Sometimes the limit in RuPay Credit Cards is a little less than normal credit cards. Due to this you may have to manage a little.
3. Late Payment Penalty
If you do not pay the bill on time, you will be charged late fees + interest and your credit score may also fall. Which will affect you in future. It can create a lot of problems.
4. Not Accepted Everywhere
UPI RuPay Credit Cards work only in India, they are not accepted on international websites or shops. Since the Upi RuPay credit card is only in India, it does not work on many websites and apps.
5. For Tech Savvy Users
For those who are not comfortable with UPI or digital systems, using it can be a bit confusing because anything is easy but seems difficult, so users must read it completely, after getting complete information, they can get in a lot of trouble.
UPI RuPay Credit Card vs Traditional Credit Card
| Feature | UPI RuPay Credit Card | Traditional Credit Card |
|---|---|---|
| Payment Method | UPI apps se (QR scan) | Swipe/Insert at POS |
| Bank Account Link | Directly linked to savings account | Not directly linked |
| Transaction Speed | Instant (real-time via UPI) | Slightly slower |
| User Interface | UPI apps like PhonePe, GPay, Paytm | Bank apps or websites |
| Rewards & Offers | Local cashback & merchant discounts | Travel, lifestyle & premium rewards |
| Global Usage | India only (domestic use) | Worldwide (Visa/MasterCard) |
| Network Support | RuPay Network | Visa, MasterCard, Amex, etc. |
| Merchant Acceptance | QR code-based UPI merchants | POS machines globally |
| Ease of Use | Very easy – just scan & pay | Requires physical card or saved info |
| Purpose | Promote Indian digital payments | Global credit utility & privileges |
RuPay vs Visa/MasterCard – Short Comparison
| Feature | RuPay | Visa / MasterCard |
|---|---|---|
| Coverage | India Only | Global |
| Charges | Low | High |
| Rewards | Local offers | Travel, shopping offers |
| Fees | Less for merchants | High for merchants |
| Eligibility | Easy | Strict |
| Credit Limit | Medium | Higher options available |
My opinion
Always pay your credit card bill on time or if you do not pay the bill on time then you may have to face a lot of problems.
Never share your OTP or PIN with anyone using these UPI apps safely, no matter who it is, just don’t share the PIN with 3 people except your family.
Keep tracking your monthly expenses so that there is no overspending and you know whether the expenses are within the limit or out of the limit and always keep your expenses under control.
FAQs – UPI RuPay Credit Card (2025)
Q1. What is UPI RuPay Credit Card?
This is a credit card that connects to your UPI apps like Google Pay, PhonePe or Paytm. You can make payment by scanning the QR code without swiping the card, and the money will be deducted from your credit card – not bank balance.
Q2. Does it make payment like normal UPI?
Yes, absolutely. Payment is made through UPI, but the money is not deducted from your bank account, but from the credit card.
Q3. Is there any extra charge?
No, there is no separate charge for making payment through UPI. But if you do not clear your bill on time, you may be charged interest and late fee.
Q4. Will this card work in foreign countries as well?
No. This is only for India. You can use it only in Indian shops and websites where UPI QR is available.
Q5. Which banks provide this card?
Big banks like SBI, HDFC, ICICI, Axis and PNB are now providing this card. You can check with your bank.
Q6. What is the credit limit of this card?
It depends on your income and credit score. But sometimes its limit is a little less than normal credit cards.
Q7. If I pay the bill late?
You may have to pay interest, which is quite high. You may also have to pay a late fee and your credit score may also go down.
Q8. Do you get cashback or rewards?
Yes, you get cashback or reward points on making payment using QR code on some cards – like grocery, petrol or mobile recharge.
Q9. Will it work without internet?
No, because if you use UPI app then internet is necessary. It will not work without data.
Q10. Will it work on both Google Pay and PhonePe?
Yes, it can work on both – bus card should be RuPay and UPI-linked.
Q11. Is this card safe?
Yes, UPI has a 2-step security system – like PIN or fingerprint – which protects against fraud.
Q12. How to apply for a card?
You can apply by going to your bank’s app, website or branch. If you already have a credit card, you can also upgrade it
Q13. Can I add multiple RuPay credit cards in a single UPI app?
At present only a maximum of 1 or 2 cards can be linked in a UPI app. In apps like Google Pay or PhonePe, this limit can change as per app updates.
Q14. Does every shop accept UPI RuPay Credit Card?
No. Only those shops which have UPI QR code and whose merchant account has permission to accept credit cards, accept this card.
Q15. If the transaction fails, when will the money be refunded?
Normally refund is received within 3 to 5 working days if the transaction fails. But sometimes there can be a slight delay.
Q16. Can I withdraw cash using this card?
Cash cannot be withdrawn using UPI. But if your RuPay credit card supports ATM withdrawal, you can withdraw money from the ATM, but there is a cash advance fee.
Q17. Do I have to enter my UPI PIN every time?
Yes, it is mandatory to enter UPI PIN on every payment. This is for security so that no one can withdraw money from your card without permission.
Q18. Is there an annual fee for this card?
Every bank has its own rule. Some banks provide free cards, some charge an annual fee ranging from ₹199 to ₹999. However, some cards also have a spend-based waiver.
Q19. Can I give my RuPay credit card to someone else for use?
No, the credit card is personal. Giving it to someone else can be risky – if it gets misused, you will be responsible.
Q20. If the phone is lost, is the UPI RuPay Credit Card safe?
If the phone is locked and the UPI PIN is secure, the card will be safe. But immediately inform your bank and unlink or block the card from the UPI app.
Conclusion
If you like local shopping, bill payments and payments through UPI, then UPI RuPay Credit Card is best for you. But if you want a card for international travel or a high-limit card then Visa/MasterCard is a better option. Every user should choose the card as per his use-case. Because this will enable the user to understand the card better and use it. Visa/MasterCard can give you a good limit but RuPay Credit Card gives you only a normal limit and you can use RuPay only in India and you can use Visa Mastercard globally.
