The Reality Check: Why You Can’t Use Credit Cards for Stocks Investing

bygovindaraju.kumarLast Updated: October 31, 2023

“It’s all about the risk and the return.”

Heard this often regarding the stock market? While many believe that the stock market is risky, unsafe, and unregulated, the truth is very different. Every rupee invested in the stock market leaves a discernible trace right back to its origin. 

In this blog, we’re set to unravel the myth that surrounds stock market safety and regulation. Join us on a journey of discovery as we shed light on the intricate workings that ensure transparency and accountability in every transaction. Let’s dive in.

How do you pay for the purchase of stocks?

When you purchase stocks, the amount is debited from your trading account held with your broker. 

But where does this amount come from?

This is the amount that you add to your trading account when you top it up. But, when you top up your trading account, you would have noticed that you can only pay via UPI, Net Banking or a Bank transfer (in some cases).

Why can I only top up my trading account using certain modes?

This is where the traceability comes into play! You can only add money to your trading account using a source which can be tracked back to you & your Bank account. This process is known as ‘Third Party Verification’, or TPV in simple terms.

TPV is backed up by another authentication where the broker ensures that the Bank Account does indeed belong to you. Hence, payment modes linked to your Bank account, such as UPI, Net Banking or Bank transfer, are used to top up your trading account.

Why can’t I top up my trading account using a Credit Card or a wallet? 

Credit Cards or wallets cannot be traced back to your Bank Account, hence, they do not fulfill the TPV criteria to top up your trading account.

In addition, Credit Cards are a form of loans/ credit, that cannot be used to purchase stocks since there is a chance that they may not be paid.

How can I top up my PML Account?

  • Go to Paytm Money & click on account/ funds
  • Enter the amount to be added & click on ‘add funds’


  • Under the UPI tab, you can either select the preferred UPI app also installed on your phone or enter your UPI ID & click on pay
  • Once you go to your UPI App, ensure that the Bank selected for payment is the same as the Bank selected/ registered in Paytm Money
  • Enter your UPI PIN in the UPI App & wait for the final payment status
  • Go back to Paytm Money to check the final fund addition status

Net Banking:

  • Select the Bank that you wish to use to add funds under the Net banking tab & click on pay
  • Enter your credentials to login to your Bank’s Net Banking
  • Ensure that the Bank selected for payment is the same as the Bank selected/ registered in Paytm Money
  • Complete the payment & wait for the final payment status
  • You will be re-directed back to the final fund addition status

Bank transfer:

  • Go to your Bank’s internet Banking page or mobile App
  • Add your Paytm Money virtual account as a beneficiary (Details are mentioned on the payment page/ Bank transfer section)
  • Once the beneficiary has been added, enter the amount to be added to your Paytm Money trading account on your Bank’s internet Banking page/ mobile App & send it via NEFT/ IMPS/ RTGS/ UPI
  • Once the money has been sent to the beneficiary, the amount will be added to your trading account within 3-4 hours

Now, you know how safe & regulated the stock market is. Next time, don’t think twice before topping up your trading account or worrying about the safety of your money, especially at Paytm Money!

Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation. Brokerage will not exceed the SEBI prescribed limit. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532. NSE (90165), BSE(6707), BSE STAR MF Member ID – 53873. Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. For complete Terms & Conditions and Disclaimers visit:

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