UPI has changed how India pays. Now, with credit cards joining UPI, you can earn cashback on your daily spending without changing your habits. But most people still don’t know how to use UPI credit cards smartly. This guide gives you simple, practical tips to get the highest cashback every month.
1. Choose the Right UPI Credit Card
(Your Rewards/Cashback Depends on This)**
Many UPI users think all cards offer the same rewards. They don’t. Always check three things before applying:
- Cashback % on UPI
- Monthly caps
- Merchant restrictions
Some cards offer flat cashback on all UPI spends. Others offer it only on selected categories.
For example, a credit card issued on the Kiwi gives a minimum of 1.5% cashback on UPI spends. This works well for people who use UPI daily for essentials.
2. Use Your Credit Card Only for Merchant UPI Payments
UPI has two types of transactions:
- Person-to-Merchant (P2M) – payments to shops, stores, Zomato, Swiggy, petrol pumps, etc.
- Person-to-Person (P2P) – payments to friends, rent, or individuals.
Most banks and NPCI allow cashback only on P2M payments. So use the credit card only where it counts.
A simple filter:
If the merchant provides a UPI QR with a business name, the cashback will work.
3. Track Monthly Cashback Limits
Many cards give good cashback but cap it at ₹200–₹500 per month.
Once you cross the limit, you earn nothing extra.
Plan your high-value spends early in the month to hit the cap faster. Use a second card after the limit is over to continue earning rewards.
4. Split Bills to Earn More Cashback
Reddit users often share this trick. If a restaurant bill is ₹2,000, split it into two UPI merchant payments of ₹1,000 each. Make the payment through two different cards. This helps you hit multiple cashback limits without overspending.
5.. Use a UPI Credit Card for Daily Essentials
The fastest way to maximize cashback is to put your daily spending on UPI:
- Groceries
- Medical stores
- Cabs
- Beauty services
- Food delivery
- Local stores
- Parking
- Fuel (if cashback is allowed)
Small, frequent transactions help you earn cashback without increasing your monthly budget.
6. Avoid Wallet Loading & P2P Transfers
Banks block cashback on wallet loads, rent payments, and sending money to friends through UPI. These transactions still work on UPI, but you won’t earn rewards. Stick to merchant QR scans and verified business UPI IDs.
7. Pay the Full Bill Every Month
Cashback loses its value if you pay interest. UPI credit cards give you rewards only when you use them responsibly. Pay on time. Keep your credit utilization low. This also boosts your credit score.
Final Thoughts
UPI credit cards are the easiest way to earn cashback on expenses you already make. Choose the right card, use it for merchant payments, track monthly limits, and shift your daily UPI spending to your credit card. With these habits, you can save more every month and earn rewards without changing your lifestyle.
