If you’ve ever used UPI to make a quick payment, you probably did it through your bank account linked with a debit card. But now, there’s another option on the table—UPI with Rupay Credit Card. This new feature allows you to pay via UPI but instead of debiting money from your savings account, it charges your Rupay credit card. Sounds convenient, right? But how does it actually differ from the traditional method? In this guide, we’ll break down UPI with Debit vs UPI with Rupay Credit Card, explaining the key differences between UPI via debit card and UPI via Rupay credit card, from how they work to the fees, rewards, and spending flexibility they offer.
What is UPI with Debit?
UPI with debit simply means using the Unified Payments Interface (UPI) where your payment is linked to your bank account through a debit card.
Here’s how it works:
- When you first set up UPI on any app (like Paytm), you verify your bank account by entering your debit card details (card number, expiry, and sometimes CVV).
- After verification, your UPI ID gets linked to your bank account.
- Every time you make a UPI payment, the money is directly deducted from your bank account balance.
- It’s not borrowing money — it’s just a faster, cardless way of using your own funds.
Example – You have ₹5,000 in your savings account. If you pay ₹500 via UPI, your account balance will drop to ₹4,500 instantly.
What is UPI with Rupay Credit Card?
UPI with Rupay Credit Card means using UPI to make payments, but instead of deducting money from your bank account, the payment amount is charged to your Rupay credit card.
Here’s how it works:
- When you link your Rupay credit card to a UPI app (like Paytm) you can pay merchants via UPI using that card as the funding source.
- The money doesn’t leave your bank account immediately. Instead, it adds to your credit card bill, which you repay later — usually by the due date to avoid interest.
- This lets you enjoy credit period benefits, possible cashback/rewards, and more spending flexibility.
Example – You have ₹5,000 in your bank account but don’t want to use it now. If you pay ₹500 via UPI using your Rupay credit card, your account balance stays the same, but ₹500 will be added to your credit card bill for repayment later.
Differences Between UPI via Debit Card and UPI via Rupay Credit Card
| Feature | UPI with Debit | UPI with Rupay Credit Card |
|---|---|---|
| Source of Funds | Directly from your linked bank account | From your Rupay credit card limit |
| Setup Requirement | Requires a valid debit card linked to your bank account for UPI activation | Requires a Rupay credit card linked to your UPI app |
| When Money is Deducted | Immediately from your bank balance | Added to your credit card bill, payable later |
| Spending Limit | Limited to your bank account balance | Limited to your credit card’s available credit limit |
| Interest Charges | None (you’re using your own money) | None if you pay full bill before due date; interest if unpaid |
| Rewards/Cashback | Rarely offered on debit card-linked UPI payments | Often offers rewards, points, or cashback depending on card issuer |
| Best For | Everyday expenses where you want instant deduction and no debt | Larger or reward-focused purchases where you want flexibility to repay later |
| UPI Merchant Acceptance | Accepted by all UPI-enabled merchants | Accepted only at merchants that allow credit card payments via UPI (currently growing) |
Is UPI payment via Rupay Credit Card Accepted Everywhere?
No, UPI payments via RuPay credit card are not accepted everywhere. They currently work only for merchant payments (P2M), not for P2P transfers, loan payments, credit card bill payments, or IPO investments.
Acceptance depends on the merchant:
- Many small shops and local merchants accept it, especially for transactions below ₹2,000.
- Some big brands and platforms don’t accept it, mainly due to higher MDR fees.
In short, it’s growing, but not yet universal, so always keep a backup payment option available.
UPI with Debit vs UPI with RuPay Credit Card: Which One Should You Use and When?
Use UPI with Debit when:
- You want instant deduction from your bank account.
- You’re paying someone via a personal UPI QR code (friend, local vendor).
- The merchant doesn’t accept credit cards via UPI.
- You want to avoid any risk of interest charges or overspending.
Use UPI with RuPay Credit Card when:
- You want rewards, cashback, or loyalty points on your purchase.
- You’re making a large or planned purchase and want to repay later.
- The merchant accepts credit card UPI payments (P2M only).
- You want to keep your bank balance untouched until the credit card bill is due.
Rule of Thumb
Maximise rewards or delay payment? → Go with RuPay Credit Card.
Everywhere acceptance? → Go with Debit.
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