Why your UPI Credit Card sometimes won’t go through at a merchant QR—and how to resolve it quickly.
First, a quick refresher
With Kiwi, you get a RuPay Credit Card that you can link to UPI in the Kiwi app and use to scan standard UPI QRs and pay via credit—no POS machine needed. Acceptance is wide, but a few realities can block a transaction.
Common reasons it doesn’t work
- Merchant has disabled credit-on-UPI on their QR
Some shops or payment providers turn off RuPay credit acceptance on their UPI QR. In that case, your app won’t show the credit option. - UPI app routing to the wrong account
If savings account is set as default, your attempt may not surface the credit option. You may need to switch the payment source within the app. - Card not linked or KYC incomplete
The RuPay Credit Card must be properly linked to your UPI handle. Incomplete KYC or an outdated app version can block it. - Issuer/network declines or velocity limits
Risk checks, temporary blocks, unusual spend patterns, per-transaction/ daily caps, or insufficient available limit can cause declines. - Category restrictions or MCC policies
Some merchant categories (e.g., certain government or specialized services) may not be enabled for credit via UPI by the acquiring setup. - Poor connectivity or QR issues
Faded/damaged QRs or spotty data can cause timeouts. Dynamic QRs that refresh quickly may also fail if scanned late. - PIN/credential mismatch
Entering the wrong credit-linked UPI PIN (different from your bank-account UPI PIN) will fail.
Quick fixes to try in order
- Check the payment source: In your UPI app’s pay screen, explicitly choose the UPI Credit Card (RuPay) instead of the bank account.
- Re-link in Kiwi: Open the Kiwi app, confirm your RuPay Credit Card via Kiwi is active and linked to your UPI handle; complete/refresh KYC if prompted.
- Try a small test amount: If velocity/limits are in play, a lower amount may pass.
- Try another merchant QR: This helps confirm if the issue is merchant-side (credit acceptance disabled).
- Update apps: Ensure both Kiwi and your UPI app are on the latest version.
- Check available limit and recent declines: Clear any outstanding bill and reattempt.
- Network sanity check: Move to a better signal or re-scan a clearer/dynamic QR.
- Wait and retry: Temporary issuer/PSP routing issues do occur and usually clear quickly.
About rewards while you troubleshoot
Even when the payment succeeds, note that cashback applies only on eligible everyday offline UPI spends. Exclusions include utilities, government payments/taxes, fuel, jewelry, transport tolls/fees, and certain professional/business services. Fuel doesn’t earn cashback, though the 1% fuel surcharge waiver applies on eligible amounts.
When to switch the payment rail
If credit isn’t available on a particular QR (merchant-side setting), pay from your bank account for that transaction and continue using the UPI Credit Card elsewhere. Acceptance is broad across kirana, chemists, salons, cafés, local provision and dairy stores, and many large chains that display a UPI QR at checkout.
1) Does every QR accept a UPI with credit card?
No. Most standard UPI QRs do, but some merchants or acquirers turn off credit-on-UPI. Government counters, utilities, tolls, and certain specialized services often don’t allow credit via UPI.
2) How do I switch the payment source to my UPI Credit Card inside the UPI app?
On the pay screen, tap the account/source selector and choose the RuPay Credit Card instead of your bank account. Many failures are just routing to the wrong source.
3) What’s the difference between static and dynamic QRs—does it affect acceptance?
Static QRs (printed/sticker) generally work the same as dynamic QRs (generated on a device). Failures on dynamic QRs can also happen if you scan too late and the code expires—ask the merchant to refresh.
4) My transaction was declined even after selecting the credit option. Why?
Common reasons: insufficient available limit, issuer/network risk checks, per-transaction or daily caps, unusually high amount, or temporary outages. Try a smaller test amount and check your available limit.
5) Do UPI Credit Cards have different PINs?
Yes, the credit-linked UPI PIN can be different from your bank-account UPI PIN. A wrong PIN or too many attempts will fail the payment.
6) Are there transaction limits for UPI Credit Cards?
Yes—limits can exist at the issuer, network, or UPI app level (per transaction and per day). Very high bills may hit these caps. Splitting a purchase or using another rail may help.
7) The merchant says “card not accepted,” but there’s a QR on the desk. What gives?
They likely disabled credit-on-UPI for that QR. You can still pay via bank account on the same QR, but the credit option won’t appear for that merchant.
8) Could poor network or a damaged QR cause failures?
Yes. Weak data, smudged/faded codes, glare, or torn stickers can cause timeouts or misreads. Move to better signal, clean the camera, or re-scan a clearer/dynamic QR.
9) A payment shows “processing” or “pending.” Will I be charged?
Most timeouts auto-reverse. Check your UPI app and card ledger (Kiwi/issuer app). If it posts and later reverses, you’ll see a credit entry. Keep the transaction reference for follow-up.
10) How do I confirm whether a payment used my card or my bank account?
Check the transaction details in your UPI app (the source should show as RuPay Credit Card) and cross-check in the Kiwi/card statement. If it shows the bank account, the app routed via savings.
