Common Problems While Using a Credit Card on UPI & Fixes

The use of UPI has become a second nature to the majority. It seems easy to scan a QR code and make a payment within a few seconds. When the credit card came to practice on UPI, most of the users anticipated the same easy-riding experience. As a matter of fact, the process of credit card usage on UPI is sometimes confusing and frustrating regarding a failed payment, additional fee, or lack of acceptance.

And you are not alone if you are having problems using a credit card on UPI. This paper discusses the most prevalent issues experienced by users, the reasons why these problems happen, and how you can easily correct them.

Why Do Problems Occur While Using a Credit Card on UPI?

The majority of problems occur due to the fact that the credit card UPI remains a new functionality. It is not supported equally by all banks, merchants, and UPI applications. To top it all, credit cards have various regulations relative to those of bank account payment, especially in terms of charges, rewards, and refunds. These differences can help prevent unneeded hassles.

Most Common Problems faced while using a credit card on UPI

1. Credit Card Not Showing in the UPI App

The biggest user complaint is that the user does not find their credit card in the UPI app. This normally occurs when the app does not support the credit card, or the bank has yet to activate credit card UPI services. The second most common cause is that there is a mismatch between the mobile number associated with the credit card and the mobile number associated with the UPI app.

To resolve this problem, you need to ensure that you have a credit card belonging to the RuPay network since other networks are not usually supported. You are also advised to make sure that your credit card and UPI account are connected with the same mobile number. The problem can be frequently fixed by updating the UPI app or by using another supported app.

2. UPI Payment Failed When Using a Credit Card

Payment failure is another issue that users commonly face. You may see an error message or find that the transaction does not go through at all. In many cases, this happens because the merchant you are paying does not accept credit cards or UPI payments. Even though the QR code works for regular UPI, it may not support credit card transactions.

Payment failures may also occur due to technical problems like network problems or temporary server failures. Moreover, when you run out of credit limit, your transaction will automatically fail. Before retrying the payment, it is better to check your available credit limit and make sure that the merchant accepts it to save some time and frustration.

3. Extra Charges on Credit Card UPI Payments

Many users are surprised to see extra charges added when they use a credit card on UPI. This happens because some merchants apply a convenience fee for accepting credit card payments. Unlike bank UPI payments, credit card transactions may attract fees depending on the merchant category and platform policies.

To avoid unexpected charges, it is important to check the final payable amount shown on the screen before confirming the payment. If you notice that a fee is being applied, you may choose to use bank-linked UPI instead for that transaction.

4. Credit Card UPI Not Accepted Everywhere

Another limitation of credit card UPI is that it is not accepted by all merchants. Some shops and online platforms have not enabled this option, while others may be restricted due to the type of business they operate. As a result, the credit card option may appear disabled or unavailable during checkout.

In such situations, switching to a bank account UPI or another payment method is usually the simplest solution. Over time, merchant acceptance is expected to improve, but for now, limited availability remains a common issue.

5. Unable to Send Money to Friends or Family

Most of the users want to transfer money to their friends or relatives through a credit card on UPI, but this is not possible. The UPI of credit cards does not allow person-to-person transfer due to the regulation. This may be baffling to new users of the feature.

The most effective solution to this would be to keep using the bank-connected UPI in personal transfers and use the merchant-related credit cards UPI for just one payment. This is a limitation that can be known in advance to help avoid failed transactions.

6. No Rewards, Cashback, or EMI Benefits

The other disappointment among users is that an offer of rewards, cashback, or EMI on credit card UPI payments is nonexistent. Not all banks provide reward points on such transactions, and EMI can not be provided using UPI.

This is due to the fact that credit card UPI payments are usually not perceived as the same thing as card swipe or card online payments. In case receiving rewards or making payments in EMIs is a significant concern to you, then a more appropriate option will be to use the traditional methods of card payments.

7. Refund Delays on Credit Card UPI Payments

Refunds on credit card and UPI payments can take longer than expected. This is because credit card refunds follow a different settlement process compared to bank account refunds. In some cases, delays can also occur if the merchant takes time to initiate the refund.

If your refund is delayed, keeping the transaction reference number and checking the expected refund timeline with your bank can help. Most refunds are eventually processed, but patience is often required.

8. App-Specific Issues Across Different UPI Platforms

Users sometimes notice that credit card UPI works smoothly on one app but fails on another. This happens because UPI apps may roll out features at different times or face temporary technical issues. Updating the app, re-adding the credit card, or switching to another supported UPI app can often resolve such problems. App-level differences are common and usually temporary.

Things to Keep in Mind Before Using a Credit Card on UPI

• Credit card UPI is ideal for making purchases and settling bills, as opposed to sending money to friends.
• Although a store might accept UPI, it might not accept credit card UPI, and this is the reason to always check before payment.
• It might charge this in some transactions as additional charges or convenience fees, hence the need to observe the final amount to ensure.
• The payments are drawn out of your credit limit and therefore ensure that you have enough balance.
• There might be no cashback or reward points, or EMI options on a credit card on UPI.
• The refunds may take more time than normal, and they should have the transaction details at hand.
• At the present time, UPI supports only some credit cards (primarily RuPay).
• Use a credit card or UPI like a credit and not cash; monitor your spending and pay it before the interest is charged.

Conclusion

Purchasing on UPI with the help of a credit card can be a useful experience, yet there are some drawbacks and obstacles related to this approach. Although it is good for making transactions with merchants, it is not applicable for sending money to friends or family, and not all merchants or apps accept it. Failure to pay, unnecessary charges, slow refunds, or rewards can be experienced by users who do not know how to use it.