Linking credit card with UPI is a new feature that allows users to make payments using their credit card limit through the UPI platform. This can have some advantages and disadvantages, depending on how you use it. Here are some of the pros and cons of linking credit card with UPI,
What are the benefits of UPI on a credit card?
Convenience, Linking your credit card with UPI allows you to make payments seamlessly using your UPI ID instead of entering your credit card details each time. This can be particularly convenient for frequent online transactions and peer-to-peer transfers.
Rewards, Credit cards often offer reward programs that provide cashback, points, or miles for spending. Linking your credit card with UPI extends these rewards to your UPI transactions, allowing you to earn points or cashback on even small purchases.
Higher spending limits, Credit cards typically have higher spending limits than debit cards. This can be useful for making larger purchases that exceed your available bank balance.
Enhanced security, UPI transactions are protected by multi-factor authentication, which includes a PIN and often biometric verification. This helps safeguard your transactions and reduces the risk of unauthorized access.
However, linking your credit card with UPI also carries some potential drawbacks, including:
Overspending risk, The ease and convenience of UPI transactions can lead to impulse purchases and overspending. It’s important to exercise financial discipline and manage your credit card spending responsibly.
Merchant acceptance, Not all merchants accept UPI payments, especially for larger transactions. In such cases, you may need to use your physical credit card or another payment method.
Potential fraud, While UPI transactions are generally secure, there is still a risk of fraud. It’s crucial to protect your UPI PIN and avoid sharing it with anyone.
Additional charges, Some banks may charge a fee for linking your credit card with UPI. It’s advisable to check with your bank about any applicable fees.
Overall, linking your credit card with UPI can be a convenient and rewarding option for making payments. However, it’s essential to use this feature responsibly and manage your credit card spending carefully to avoid potential financial pitfalls.
