RuPay credit cards can now be used on the UPI Platform. This is highly beneficial to both merchants and customers due to increased credit card use for both. Consumers can now seamlessly use their credit cards to make payments. All they have to do is scan the asset lite QR codes. The payments are secure and safe, since authentication is done by using an UPI PIN.
This step taken by the RBI will give customers a one-stop solution for all their credit card needs. They can now pay their credit card bills, check credit balances, manage credit lifecycles, and set up UPI autopay for bill payments. Merchants will benefit from the increased consumption. Using RuPay credit cards on the UPI platform provides merchants with avenues to cater to a new set of credit customers thus ensuring growth in their business.
Let us now read more about RuPay credit cards on UPI - Their functions, limitations, and who can use them.
Features of The RuPay Credit Card
- Discover credit card accounts from the issuer bank using your registered mobile number and link them to your UPI ID on the BHIM app or any UPI app.
- After linking the card, customers will be able to pay the merchant by scanning the UPI QR code. Payment authentication is done by using the UPI PIN.
- This functionality will not permit cash withdrawal at merchant, P2P, P2M, card to card payments etc.
- The Transactions done through this mode will have UPI standard transaction limits.
- Features like dispute resolution and AutoPay will be available for the customer through ODR (UPIHelp) via UPI Apps.
How To Link RuPay Credit Card on UPI?
Ways to link RuPay credit cards on UPI are
Step 1: Open the BHIM UPI App and enter the passcode
Step 2: Tap on the bank account and add an account
Step 3: Select the bank issuing your credit card
Step 4: Choose your credit card
Step 5: Click on Confirm
Step 6: Click on view accounts
Step 7: Choose from the options available
Step 8: Set your UPI PIN
Step 9: Your UPI PIN has been set successfully.
How To Make Payment With RuPay Credit Card on UPI
Step 1: Scan the UPI QR code of the merchant (Static or dynamic)
Step 2: Enter the amount to be paid or make the payment with the auto-fetched amount
Step 3: Choose the credit account as your debit option
Step 4: Enter the UPI PIN to pay and you are done
Who Can Use RuPay Credit Cards - Which Payments Are Allowed
RuPay credit cards can be used only for merchant payments. They can also be used for recurring merchant payments such as electricity, credit card bills etc. RBI allows auto-pay options for recurring transactions with the upper limit of Rs. 15,000 without additional authentication. Customers can pay their credit card bills entirely through UPI.
Limitations of RuPay Credit Cards On UPI
You cannot make the following payments using RuPay credit cards on UPI. But, you can directly debit the payment from your savings account on your UPI.
1)Transferring Money to Any Other Individual UPI Handle: You cannot transfer money to your friends or family who have created their UPI handles as individuals using the RuPay credit card on UPI.
2) RuPay Credit Card - UPI handles: Using this method, you cannot make payments to any other credit card’s UPI handles too.
3) Cannot Transfer Money To Small Merchants Under the P2PM Category:
You cannot transfer money to P2PM small merchants using this method. Small merchants with a total incoming UPI transaction of less than or equal to Rs. 50,000 are categorized as P2PM. This includes a large number of small street vendors/shops like vegetable vendors, street food vendors, chai wallahs, etc.
You Cannot Request Cash Reimbursement for UPI Payment
You cannot ask for cash in return for a swipe using your credit card at a shop. The same thing holds good for Rupay credit cards on the UPI platform. You cannot make the UPI payment and ask for cash in lieu of the UPI payment. Thus, any cash reimbursement etc. cannot be obtained as physical cash but only digitally. It will go to the credit card directly.
What Is The Transaction Limit For RuPay Credits On UPI?
The standard transaction limit for RuPay credit cards on UPI is Rs. 1 Lakh per transaction. For verified merchants in specified categories, the limit can be raised to Rs. 2 Lakhs per transaction. Non-verified merchants are given a daily transaction limit of Rs. 2,000.
Which Banks Are Currently Live on UPI?
Four Banks - Punjab National Bank, Union Bank of India, Indian Bank, and HDFC Bank are four banks that currently live on UPI.
Benefits of RuPay Credit Cards on UPI
- Transactions are Quick: Customers don’t have to bring their credit cards or wallets to the shop. All they have to do is carry their mobile phones. They can just scan the code and authenticate using the UPI PIN. The whole payment process takes just a few seconds and also eliminates the need for carrying cash and credit or debit cards with you.
- No Hidden Fees: There are no additional costs such as maintenance fees or annual fees. So, customers now have an economical payment choice.
- Safer Transactions: The UPI PIN is a unique identifier that is tough to guess or duplicate. So, a hacker cannot steal account information easily. They meet with lower chances of success at fraudulent attempts to hack customers’ accounts. Additionally, the retailer does not receive or save any personal information, which reduces the risk of fraud.
- Inexpensive Choice For Merchants: Expensive POS structure is required by merchants to receive payments through credit cards. But, now they can accept credit card payments just with inexpensive QR codes. RBI categorizes small offline merchants as those who have a business turnover less than Rs. 20 Lakhs during the previous financial year as small merchants. For transactions worth Rs 2000 or lower using RuPay credit cards, they will not be charged Merchant Discount Rate (MDR), interchange, or other fees.
Conclusion
Many people now use UPI to make payments. Considering the deep reach, enabling RuPay credit cards on the UPI Platform will make payments simpler and easily accessible for many people. It will also help merchants due to increased consumption. With the elimination of POS terminals and physical cards, paying will become very convenient for both merchants and customers.
FAQS RuPay Credit Cards On UPI: Know Who Can Use, How It Functions and Its Limitations
1:Is there a need to set up a UPI PIN separately or is it enough to authenticate using the credit card PIN?
You have to set up a UPI PIN separately and a credit card PIN cannot be used for UPI transactions.
2:What is the impact of UPI on credit cards?
Currently, customers can make transactions through their bank accounts using UPI. Using this feature, users will be able to link their credit cards with their UPI accounts. This means that they do not have to carry their credit cards with them anymore for payments.