Best Credit Cards for UPI Payments

Since the National Payments Corporation of India (NPCI) enabled RuPay credit cards on UPI in 2022, you can link a RuPay credit card to Google Pay, PhonePe, Paytm or BHIM and pay any UPI QR code straight from your credit limit instead of your bank balance. Visa and Mastercard credit cards are not eligible — only RuPay.

For merchants, transactions up to ₹2,000 carry zero MDR (merchant discount rate); above ₹2,000 the merchant pays ~1.1%. For you, the spend behaves like a regular credit card transaction — it counts toward your statement cycle, earns rewards per the card's schedule, and qualifies for the standard 45–50 day interest-free period.

• Daily groceries & kirana: Most kirana merchants only accept UPI. A RuPay card that earns 1%–2% here outperforms a Visa cashback card that you can't even use.
• Petrol pumps: Fuel is excluded from reward schedules on almost every card and attracts a 1% surcharge. Use a fuel-specific card or pay cash/debit.
• Auto/cab: UPI direct usually wins over wallet routing because rewards stack instead of being capped.
• Bills & rent: Avoid UPI credit card here — most issuers explicitly exclude these categories from rewards and rent platforms charge a 1%–1.5% convenience fee.

Source: National Payments Corporation of India.