The Unified Payments Interface (UPI) has revolutionized the way Indians perform financial transactions. It has made transferring money between bank accounts convenient, quick, and hassle-free. UPI has witnessed a rapid adoption rate, with millions using it to make transactions worth billions of Rupees every month.
The simplicity and efficiency of UPI have led to its expansion, and credit cards have now been brought under its purview. This article will explore the linkage of UPI with credit cards and provide a step-by-step guide on how to link your HDFC credit card with UPI.
Linkage of UPI with Credit Card: What does it mean?
Last year, the National Payments Corporation of India (NPCI) announced the availability of UPI-based remittance services for credit cards. Until then, UPI could be only linked to bank accounts, allowing users to make instant transactions directly from their account to another. The introduction of credit cards in the UPI ecosystem extended the benefits of UPI services to credit cardholders. This integration aims to make transactions more straightforward and faster, as credit cardholders can now transfer money, make bill payments, and check their card balance using UPI apps. However, this facility is currently available only for RuPay cardholders. Recently, HDFC has started this facility.
Advantages of Linking Credit Card with UPI
- Easy tracking of expenses:
One of the most significant advantages of linking a credit card to UPI is the ability to easily track and manage expenses. Once connected, the UPI app will display the transaction details, ensuring that you are aware of your spending patterns.
- Real-time updates and alerts:
By linking your HDFC credit card to UPI, you will receive real-time updates and alerts for transaction successes, failures, and refunds. This will ensure that you always stay in control of your finances.
- Seamless bill payments:
Through UPI, you can now make quick and secure payments for utility bills, mobile recharge, and shopping bills directly through your credit card, ensuring hassle-free bill management.
- Improved security:
UPI transactions are secured with two-factor authentication, ensuring the safety of your funds while transferring money or making payments.
How to link your HDFC credit card with UPI?
The Reserve Bank of India (RBI) has allowed linking credit cards with UPI since February 2022. However, not all banks have implemented this feature. HDFC Bank, one of India’s largest private banks, now allows you to link your credit card to UPI. Here’s a step-by-step guide on how to link your HDFC credit card with UPI:
Step 1: Choose your UPI app
There are several UPI apps available for download on the Google Play Store and Apple App Store. Some popular ones include Google Pay, PhonePe, Paytm, and BHIM. You can choose any of these apps, based on your preference or the one that you are already using for your other bank accounts.
Step 2: Log in or sign up
Read more: What are the benefits and risks of having multiple credit cards?
If you are a new user, sign up for the app by entering your mobile number and creating a strong password. If you are an existing user, log in with your credentials.
Step 3: Add your HDFC credit card to the UPI app
Once logged in, you need to add your HDFC credit card to the app. Different UPI apps may have different navigation paths. However, the process is almost similar across all apps. For instance, in Google Pay or PhonePe, click on the profile icon on the top right corner of the home screen. In the next menu, select ‘Add Bank Account’ or ‘Link Bank Account.’ In Paytm, you can find the ‘Link Bank Account’ option under the ‘Money Transfer’ tab on the app’s home screen.
Step 4: Select HDFC Bank and verify your card
Once you have clicked on the ‘Link Bank Account’ option, you will get a list of supported banks. Find and select HDFC Bank from the list. The next screen will display a list of your bank accounts and credit card (if already registered with your mobile number). Choose the credit card that you want to link with UPI.
The app will send a verification SMS from your registered mobile number to verify the linking. Ensure that you have a sufficient account balance on your mobile number before proceeding.
Step 5: Create UPI PIN for your credit card
Once the verification is complete, you will be prompted to create a new UPI PIN for your HDFC credit card. This PIN will be used to authenticate all UPI transactions made with the credit card. You might be asked to enter the card’s last six digits and the expiry date to generate an OTP. Once you receive the OTP, enter it in the app and create your preferred UPI PIN.
Note: It is essential never to share your UPI PIN with anyone or any platform, as this information can be misused to make unauthorized transactions.
Step 6: Your HDFC credit card is now linked with UPI
Congratulations! Your HDFC credit card is now linked to UPI, and you can start making transactions using the selected UPI app. You can send money, make bill payments and check your credit card balance through UPI.