If you make a UPI payment using a credit card, are there any charges? This question is on many people’s minds. Let’s find out what rules NPCI has established for this…
RuPay Credit Card UPI Payment Charges: If you also make payments by linking your credit card to UPI while shopping, then this news is very important for you. Many people are still confused about whether there will be any additional charges for making payments using this method. Let’s find out.
What are NPCI’s rules?
According to the National Payments Corporation of India, if anyone makes a UPI payment of up to ₹2000 using a RuPay credit card, there are no charges. Simply put, if you buy goods worth up to ₹2000 at a store and pay using UPI, there will be no impact on your pocket.
However, if your payment exceeds Rs 2,000, you may be subject to a Merchant Discount Rate (MDR). Although this charge is levied on the merchant, it is often passed on to the customer.
Where does the MDR charge apply?
The MDR charge will currently apply to large merchants and branded stores. Small shopkeepers, local vendors, and grocery stores are exempt. This means that small purchases by the average person will not be affected.
If you have a RuPay credit card, you can link it to your UPI app (such as PhonePe, Google Pay, Paytm). Once linked, you can make payments directly from the credit card by scanning the QR code. This is similar to a debit card.
Tips for Using Credit Cards
- Make full payments on the monthly billing date to avoid interest and late fees.
- Timely payments and proper utilization of your limit improve your score.
- Activate auto-debit from your bank to ensure timely payments.
- EMIs seem convenient, but use them only after understanding the interest and charges.
- If you have multiple cards, keep track of their limits, due dates, and offers.
