UPI: Know Benefits And Risks Of Linking Credit Card With UPI Payment Apps - News18
[ad_1]
Curated By: Business Desk
Last Updated: November 13, 2023, 14:31 IST
Linking your credit card to UPI ensures hassle-free payments.
Linking your credit card to UPI payment apps, like GooglePay, PhonePe and Paytm, allows you to make payments where PoS machines aren't available.
Online payments are gaining popularity among users due to the convenience and speed. Whether making purchases online or at physical stores, more and more customers are adopting online payments via Unified Payments Interface (UPI). The National Payments Corporation of India (NCPI) managed platform has emerged as one of the largest online payments platforms in India. You can make UPI payments through multiple apps, including GooglePay, PhonePe and Paytm, among others.
Earlier, the UPI payments were allowed using a savings account or the debit card through any of the online payment platforms. The customers can enjoy more convenience and flexibility for online payments as the Reserve Bank of India has recently allowed UPI payments using credit cards.
There are several benefits of linking your credit card to the apps for making UPI payments.
Benefits of linking credit cards to UPI payment apps
1. Seamless Payments: Linking your credit card to UPI ensures hassle-free payments. It eliminates the need for entering the card details, such as the card number or expiry date for every transaction, making payments easier. You also need not to enter the CVV as required in case of using a debit card.
2. Wider Accessibility: While PoS machines are used by many merchants, all of them may not have the facility to swipe your credit card. Therefore, linking your credit card to UPI could be convenient as most merchants opt for UPI payments.
3. Extended Payment Time: You get a repayment window of 45 to 50 days for credit card bills. The payments through UPI apps can be made even if you don’t have cash in your savings account.
4. Rewards and Cashback: Every transaction through the linked credit card on UPI may offer cashback or reward points. A few Rupay cards, for example, give up to 2% cashback, allowing you to save money on every payment.
5. Easy Setup: Though people might think it requires several steps to link a credit card on UPI payments platform, it’s quite simple. The steps include adding the credit card details, such as the card number, holder’s name, expiry date, and CVV. Thereafter, an OTP will be sent on your registered mobile number to authenticate the card details. After successful verification, you will be able to use the credit card for UPI transactions by entering the CVV and OTP whenever needed.
Risks of linking credit card with UPI payment apps
Though linking a credit card with UPI payment apps could be convenient it comes with a few risks. You may see higher credit card spendings if you don’t keep a check on your UPI transactions. Similarly, failed transactions may lead to added burden, as UPI payments often fail in areas with low connectivity. It’s advisable to track all your UPI payments using credit cards to avoid misuse and impulsive spending.
Comments
Post a Comment