How to earn rewards on every UPI payment using your credit card? | Mint

UPI payments are becoming so popular, savvy users are finding it easy to earn rewards on their regular transactions by just linking your credit card to your UPI app. If you use UPI for peer transfers, bills, and groceries, this innovation can transform your regular payments into opportunities to collect bonuses.

This informative guide will show you how to maximise your UPI payments made through your credit card.

Why use a credit card for UPI transactions?

When you connect your UPI app and use a credit card, you can:

• Rewards: Earn 1% to 2% in cashback or rewarded with the same amount in points.
• Have longer billing cycles: Delay payment, while using interest-free credit.
• Milestone bonuses/points: Many banks reward bonus points after you spend to a certain level each month.

Understanding the mechanics

Most UPI services are now allowing direct linking of credit cards (e.g. Google Pay, PhonePe and Paytm). When activated:

1. Your credit card will replace your bank account.
2. Even though the transaction is coded as a UPI payment, the credit card network is still the one billing the transaction.
3. You get to reap all your ordinary benefits and protections appealing to credit cards.

Salila Pande, MD & CEO, SBI Card expressed her opinion on how cardholders can easily earn reward points on every UPI transaction, “In a move that’s redefining digital payments, Indian consumers can now earn reward points on UPI transactions by simply using their credit cards on the RuPay network. Such spends can only be made for Peer-to-Merchant i.e., P2M transactions. This has now opened a much larger merchant base and spending avenues for customers, to easily transact and earn reward points on everyday spends.”

Which credit cards let you do this?

You won’t be able to link all credit cards to UPI, so check for:

• Cards that allow for a UPI link in your issuer’s dashboard.
• Cards that allow for cashback on online shopping.
• Cards that reward milestone spending in UPI on a monthly limit.

How to link a credit card with UPI?

1. Open the UPI app: Use Paytm, PhonePe, Google Pay, or the mobile app of your bank.
2. Select ‘add account’: Underneath where all cards or bank accounts can be added.
3. Select ‘credit card’: Choose to a credit card as the payment option. 
4. Fill in your card information: Your CVV, valid-to-date and 16-digit credit card number will need to be entered.
5. Authenticate with an OTP: You’ll receive an OTP to your registered mobile number to finalise the linking process.
6. Set your card’s UPI PIN: The PIN that you are setting will authorise your future credit card UPI transactions.
7. Start using your credit card and UPI: You can now use your credit card funds to pay to businesses or service providers with UPI and to receive rewards as required.

Maximising rewards on everyday payments

Here’s how to turn UPI transactions into reward-earning machines:

In conclusion, by linking your credit card to your UPI app, payments often made automatically – groceries, petrol, insurance and subscriptions – will become easy earning opportunities for rewards. It is all about knowing caps and exclusions, using the right card and UPI platform and making sure to pay them regularly.

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