UPI Payments through Credit Cards is Overhyped/Useless

[rogerthat]

So I got a Tata Neu Infinity card and was all set to make every single one of my UPI payments through credit cards and reap that sweet cashback of 1.5%! However to my utter frustration, I found that on most occasions (3 out of 4) I don't even get the option to pay through the Credit Card after scanning the QR code. It just shows me the list of my bank accounts! So I end up doing a P2P transaction out of my bank account (if they don't accept cards). Of course, I attempt a UPI transaction only if they don't accept cards.

Note that this is not because there is anything wrong with UPI or RuPay.

The reason is that most merchants (most big ones and ALL small ones) set up their own personal accounts to be scanned for their business and not their merchant/business accounts. In the end you are just transferring them money. I did a calculation going through my bank accounts and the CC statement and found that in the 3 months I had the Tata Neu card my returns on UPI payments has been a pathetic 0.36%. Only around 1 out of 4 UPI transactions was I able to pay via RuPay credit card. I am going to close the card at renewal if they don't make it LTF. No way I am going to recoup the Rs.1770 annual fees.

At the end of it, no benefit at all. The entire "pay with credit card on UPI" thing is utterly useless.

The worse thing is nobody is even talking about this! Everyone pretends that they make all UPI payments via credit card and keep singing songs about it!

(Note: Didn't post this in the RuPay Cards forum because people will think this is happening because something is wrong with RuPay. Mods, please feel free to relocate the thread if I am wrong).

 

[SSV]

So I got a Tata Neu Infinity card and was all set to make every single one of my UPI payments through credit cards and reap that sweet cashback of 1.5%! However to my utter frustration, I found that on most occasions (3 out of 4) I don't even get the option to pay through the Credit Card after scanning the QR code. It just shows me the list of my bank accounts! So I end up doing a P2P transaction out of my bank account (if they don't accept cards). Of course, I attempt a UPI transaction only if they don't accept cards.

The reason is that most merchants (most big ones and ALL small ones) set up their own personal accounts to be scanned for their business and not their merchant/business accounts. In the end you are just transferring them money. I did a calculation going through my bank accounts and the CC statement and found that in the 3 months I had the Tata Neu card my returns on UPI payments has been a pathetic 0.36%. Only around 1 out of 4 UPI transactions was I able to pay via RuPay credit card. I am going to close the card at renewal if they don't make it LTF. No way I am going to recoup the Rs.1770 annual fees.

At the end of it, no benefit at all. The entire "pay with credit card on UPI" thing is utterly useless.

The worse thing is nobody is even talking about this! Everyone pretends that they make all UPI payments via credit card and keep singing songs about it!

(Note: Didn't post this in the RuPay Cards forum because people will think this is happening because something is wrong with RuPay. Mods, please feel free to relocate the thread if I am wrong).

A very valid point... and the point to be discussed thoroughly .. Thanks for bringing this up:

I too observed this but not like 3/4 , it is only 1/4... nonetheless it is significant...
I have started using this UPI on Rupay from this week only...

However,
here , one point that need to be highlighted : there is nothing wrong with UPI or Rupay or UPI on Rupay...

It is all about how the people have been misusing it...specifically, the the traders.. even the big ones... As you said they are not operating the merchant accounts instead using personal accounts... which is wrong..

So, it is not the system that need to be blamed here right now, it is the players who are playing the game not within the rules of the game...

There are some valid cases also from the merchant point of view: some are using UPI QR codes which is directly linked to their business current accounts... which is okay, but this is minority...
We can discuss more on this but a bit later..

 

[romilq]

My experience has been totally different. 1 in 30-35 transactions on UPI doesn't allow credit card. Even small shopkeepers in my village have merchant QR code. Rarely credit card is not allowed. So I am making 2% on all transactions with Kiwi card.

 

[SSV]

My experience has been totally different. 1 in 30-35 transactions on UPI doesn't allow credit card. Even small shopkeepers in my village have merchant QR code. Rarely credit card is not allowed. So I am making 2% on all transactions with Kiwi card.

Then in that case:
Your village should be named as "The Best Role Model Village - UPI on Credit Card"

 

[InquisitiveWhiz]

I think currently the best use case of UPI on Rupay CC are business/institution which charge extra for making CC payment on POS like educational institutes, car services apart from the usual shopkeepers who have merchant QR codes. Pay through UPI on Rupay on CC does not attract any extra charges but again don't know for how long will this last as i heard MDR on Rupay is going to be implemented soon.

 

[SSV]

My experience has been totally different. 1 in 30-35 transactions on UPI doesn't allow credit card. Even small shopkeepers in my village have merchant QR code. Rarely credit card is not allowed. So I am making 2% on all transactions with Kiwi card.

and your Village Merchants are doing the right thing... Kudos to them, 1/35 is a very good number...

 

[SSV]

I think currently the best use case of UPI on Rupay CC are business/institution which charge extra for making CC payment on POS like educational institutes, car services apart from the usual shopkeepers who have merchant QR codes. Pay through UPI on Rupay on CC does not attract any extra charges but again don't know for how long will this last as i heard MDR on Rupay is going to be implemented soon.

+1,

All valid points.. Lets see where this journey is heading to...

 

[SSV]

My experience has been totally different. 1 in 30-35 transactions on UPI doesn't allow credit card. Even small shopkeepers in my village have merchant QR code. Rarely credit card is not allowed. So I am making 2% on all transactions with Kiwi card.

May I know which State or Area your Model Village is located at, where some honest traders live??

 

[romilq]

May I know which State or Area your Model Village is located at, where some honest traders live??

Vadodara district in Gujarat!

 

[SSV]

Vadodara district in Gujarat!

Very nice to hear that... It should be like that, pan India...

 

[rogerthat]

Maybe it is different in metros and big cities. Yesterday for instance the reps of a lab came to the office offering medical checkup. Was forced to do a P2P transfer of 1500 on scanning their QR code. I demanded to know why. The guys admitted that it is the QR of the bank account of the franchise owner.

 

[rogerthat]

I think currently the best use case of UPI on Rupay CC are business/institution which charge extra for making CC payment on POS like educational institutes, car services apart from the usual shopkeepers who have merchant QR codes. Pay through UPI on Rupay on CC does not attract any extra charges but again don't know for how long will this last as i heard MDR on Rupay is going to be implemented soon.

Talking about this I didn't get Neu Coins when I scanned the code at a tyre shop/repair station after fixing a puncture. This was a business code though.

 

[SSV]

Maybe it is different in metros and big cities. Yesterday for instance the reps of a lab came to the office offering medical checkup. Was forced to do a P2P transfer of 1500 on scanning their QR code. I demanded to know why. The guys admitted that it is the QR of the bank account of the franchise owner.

Yes sir, Generally Urban areas host some smart-arses...

 

[rogerthat]

All the small time chai shops, cigarette/sweets, provision shops, stationery, vegetable/fish etc basically any one-room kind businesses have all their personal accounts put up for scanning.

 

[Deleted member 11974]

So I got a Tata Neu Infinity card and was all set to make every single one of my UPI payments through credit cards and reap that sweet cashback of 1.5%! However to my utter frustration, I found that on most occasions (3 out of 4) I don't even get the option to pay through the Credit Card after scanning the QR code. It just shows me the list of my bank accounts! So I end up doing a P2P transaction out of my bank account (if they don't accept cards). Of course, I attempt a UPI transaction only if they don't accept cards.

Note that this is not because there is anything wrong with UPI or RuPay.

The reason is that most merchants (most big ones and ALL small ones) set up their own personal accounts to be scanned for their business and not their merchant/business accounts. In the end you are just transferring them money. I did a calculation going through my bank accounts and the CC statement and found that in the 3 months I had the Tata Neu card my returns on UPI payments has been a pathetic 0.36%. Only around 1 out of 4 UPI transactions was I able to pay via RuPay credit card. I am going to close the card at renewal if they don't make it LTF. No way I am going to recoup the Rs.1770 annual fees.

At the end of it, no benefit at all. The entire "pay with credit card on UPI" thing is utterly useless.

The worse thing is nobody is even talking about this! Everyone pretends that they make all UPI payments via credit card and keep singing songs about it!

(Note: Didn't post this in the RuPay Cards forum because people will think this is happening because something is wrong with RuPay. Mods, please feel free to relocate the thread if I am wrong).

well it depends on the merchants you go and buy things from.
yes making a merchant account for vendors requires them to link thier pan and gst number for higher limits which they may not do.
But in tier 1 cities every 3 out of 4 transactions have been done by me by rupay card and i very rarely use it because i prefer using amex/visa/mc over rupay.
also the fees that you mentioned is easily recoverable in the first month itself.
you get 1499 coins which you can use to buy groceries and secondly if you start buying from merchants who only have merchant qrs you will be able to recover the gst part in the same month itslef.

 

[saucy]

So I got a Tata Neu Infinity card and was all set to make every single one of my UPI payments through credit cards and reap that sweet cashback of 1.5%! However to my utter frustration, I found that on most occasions (3 out of 4) I don't even get the option to pay through the Credit Card after scanning the QR code. It just shows me the list of my bank accounts! So I end up doing a P2P transaction out of my bank account (if they don't accept cards). Of course, I attempt a UPI transaction only if they don't accept cards.

Note that this is not because there is anything wrong with UPI or RuPay.

The reason is that most merchants (most big ones and ALL small ones) set up their own personal accounts to be scanned for their business and not their merchant/business accounts. In the end you are just transferring them money. I did a calculation going through my bank accounts and the CC statement and found that in the 3 months I had the Tata Neu card my returns on UPI payments has been a pathetic 0.36%. Only around 1 out of 4 UPI transactions was I able to pay via RuPay credit card. I am going to close the card at renewal if they don't make it LTF. No way I am going to recoup the Rs.1770 annual fees.

At the end of it, no benefit at all. The entire "pay with credit card on UPI" thing is utterly useless.

The worse thing is nobody is even talking about this! Everyone pretends that they make all UPI payments via credit card and keep singing songs about it!

(Note: Didn't post this in the RuPay Cards forum because people will think this is happening because something is wrong with RuPay. Mods, please feel free to relocate the thread if I am wrong).

Quick question,
Do you have money loaded on your wallet?

I saw that as long as I had money on Paytm wallet, it didn't give me the option to pay via credit card. Dark patterns right there.

There are a few more I noticed in Paytm.

 

[Deleted member 11974]

Quick question,
Do you have money loaded on your wallet?

I saw that as long as I had money on Paytm wallet, it didn't give me the option to pay via credit card. Dark patterns right there.

There are a few more I noticed in Paytm.

it pushes wallet as a payment mode because it gets 1.1% mdr above 2k transactions

 

[saucy]

xywowowvw has a good point.

You may want to consider wallet loading to Paytm. That would get you about 3-4% cashback
So you may use that, and 1.5% for the rest of them

 

[tryabp]

True point! But personally i have not faced such problem. Almost 90% transactions go through CC. In big store i always ask for tap and pay because CC milestone reward is much higher than regular Rupay reward.

I see UPI CC payment is more useful in terms of B2B payments. Where we get 45 days credit for business payments.

 

[imdjay]

I had done UPI through PNB rupay SELECT CARD on a petrol pump for 310rs. I was charged surcharges. Then What is the benefit of having UPI on rupay?