Paytm AU Credit Card Review 2026: 2% on UPI Between ₹100 and ₹2,000 — and Half That Above It
Paytm AU is lifetime free and pays 2% on Paytm UPI between ₹100 and ₹2,000. Above ₹2,000 the rate halves. Points are worth ₹1 in the Paytm app and ₹0.50 on AU Rewardz. Full review and FAQs.
Paytm AU is lifetime free and its points are worth ₹1 each when redeemed as Paytm Gold — four times what an ordinary AU Reward Point is worth.
That valuation is AU's own arithmetic, not an assumption: AU calls a band paying 2 Reward Points per ₹100 '2% Rewards', which only works at ₹1 a point.
The card's structure has one feature that runs backwards from how spend thresholds usually work.
Paytm AU Credit Card Quick Overview
| **Card type** | Entry co-brand UPI card |
|---|---|
| **Best for** | Someone who lives in the Paytm app and makes mid-sized UPI payments |
| **Joining / renewal fee** | Nil, same on renewal |
| **Network** | Visa, RuPay |
| **Base reward rate** | **1.0%** |
| **Reward currency** | Paytm AU Reward Points, valued at ₹1 each |
| **Lounge access** | None published |
| **Forex markup** | 3.49% |
Reward Structure: How You Earn
1 Reward Point = ₹1 when redeemed as Paytm Gold on the Paytm app — the published maximum.
1 Reward Point = ₹0.50 when redeemed on AU Rewardz — half as much. A cardholder who redeems in the wrong place halves everything they have earned.
2 Reward Points per ₹100 on Paytm UPI transactions between ₹100 and ₹2,000 — 2%.
1 Reward Point per ₹100 on Paytm UPI above ₹2,000 — 1%.
1 Reward Point per ₹100 on online and offline card spends, and on Paytm utility bill payments.
1 Reward Point per ₹400 on UPI through other apps — 0.25%.
| Spend | Effective rate |
|---|---|
| Everything else | 1.0% |
| Fuel, rent, wallet loads, government, gaming | **0%** |
The 2% band is bounded at both ends
Most spend thresholds reward spending more. This one does the opposite.
| Transaction size | Rate |
|---|---|
| Below ₹100 | Nothing |
| ₹100 – ₹2,000 | **2%** |
| Above ₹2,000 | 1% |
A ₹5,000 UPI payment earns half the rate of a ₹1,500 one. If you are paying a ₹4,000 bill through Paytm UPI, splitting it into two payments under ₹2,000 would double the rate — which tells you the structure is designed to reward transaction frequency rather than volume.
Everything is built to keep you in the Paytm app
UPI through Paytm earns up to 2%. UPI through any other app earns 1 Reward Point per ₹400 — a quarter of the rate. Utility bills earn only when paid through the Paytm app. The best redemption channel, Paytm Gold, is in the Paytm app.
The card works well if Paytm is already your default. It works poorly otherwise.
Fair usage charges: the most important thing about any AU card
AU levies 1% 'fair usage charges' on five categories of spending. These are charges, not merely the absence of rewards — money leaves your account for using the card.
| Category | MCCs | When the 1% applies |
|---|---|---|
| Fuel | 5172, 5541, 5542, 5552, 5983 | Monthly aggregate above 50% of your credit limit or ₹50,000, whichever is **lower**. If a single transaction also exceeds ₹10,000, the 1% hits the **entire** aggregate, not just the excess. |
| Utility | 4900 | Monthly aggregate above ₹50,000 |
| Education & government | 8211, 8220, 8241, 8244, 8249, 8299 | Paid through third-party apps (CRED, PhonePe, Paytm, MobiKwik, Freecharge) or internationally. Minimum ₹99 per transaction. Paying the institution directly is free. |
| Rent | 6513 | All domestic rent. Minimum ₹99 per transaction. |
| Transportation | 4111, 4112, 4784 | Monthly aggregate above 50% of your limit or ₹25,000, whichever is lower — then 1% on the **entire** aggregate. |
Two exemptions are worth knowing: the AU Corporate and Purchase cards are exempt from all five, and the ixigo AU co-brand is exempt from the transportation charge. Nothing applies to international transactions.
The fuel rule deserves a second look. Fuel earns no reward points on any AU card, and above the threshold it costs 1%. It is the only category in this dataset that is penalised twice.
Category Restrictions: Where You Won't Earn
- Where you earn nothing: Earns nothing at all: AU excludes fuel, cash withdrawals and quasi-cash from Reward Points across the range. Note that fuel is doubly penalised: it earns nothing AND, above the fair-usage threshold, attracts a 1% charge.
- Point expiry: Reward Points remain valid for 24 months from the date of accrual, per AU's Card Member Agreement. Points are credited on the statement generation date and only where the transaction has settled and has not been reversed, disputed, cancelled, refunded or charged back.
Fees and Charges
| Charge | Amount |
|---|---|
| Joining fee | Nil |
| Renewal fee | Nil |
| Finance charges | 3.75% per month (45% per annum) on all AU retail credit cards. Two exceptions: Zenith+ at 1.99% per month (23.88% per annum) and AU CA and AU CS at 2.99% per month (35.88% per annum). Commercial cards — Corporate, Purchase and Business — are charged up to 3.49% per month (41.88% per annum). |
| Interest-free period | Up to 50 days on retail cards and up to 48 days on commercial cards, and not applicable to cash withdrawals. The period is lost entirely if the previous month's dues were not paid in full. |
| Minimum amount due | 5% of principal outstanding + 100% of fees and charges + 100% of interest + due EMIs + 100% of the annual membership fee + 100% of GST, for customers who paid the previous statement's Total Amount Due in full and on time. For customers who did NOT, the principal component drops to 2% — a lower minimum that lets the balance revolve for longer. The result is rounded up to the next multiple of ₹10, and any unpaid MAD from previous statements is added on. |
| Cash advance fee | 2.5% of the amount withdrawn or ₹500, whichever is higher. Zenith+ and Traverse (NRI) have NO cash withdrawal fee. |
| Cash advance interest | Charged at the card's revolving rate from the date of withdrawal, with no interest-free period. |
| Forex markup | Varies by card: 0% on ixigo AU; 0.99% on Zenith+, NOMO and Traverse (NRI); 1.99% on Zenith, AU CA and AU CS; 2.99% on Vetta; and 3.49% on the rest of the range. |
| Dynamic currency conversion | Charged at the card's cross-currency markup rate — AU applies the same rate to dynamic and static currency conversion transactions as to foreign currency transactions. |
| Late payment | 15% of the Total Amount Due, subject to a minimum of ₹10 and a maximum of ₹1,300. AU's late fee is PERCENTAGE-BASED, which is unusual — most Indian issuers use a flat slab table. On a ₹2,000 balance the charge is ₹300 where a slab-based issuer would charge ₹400–₹500; on a ₹20,000 balance it is ₹1,300 against a typical ₹950–₹1,000. AU's own MITC works the ₹2,000 example. The charge is levied on the amount outstanding after the due date, not on the total amount due, and applies equally if you pay less than the minimum amount due. |
| Overlimit | 2.5% of the over-limit amount, subject to a minimum of ₹500. |
| Payment return | 2% of the Total Amount Due or ₹500, whichever is higher, on the return or failure of a payment — cheque, ECS/NACH or autopay alike. |
| Rent payment | 1% of the transaction value, minimum ₹99 per transaction, on domestic rent (MCC 6513). International rental transactions are not charged. |
| Utility payments | No charge while aggregate utility spend (MCC 4900) stays at or under ₹50,000 in a calendar month; 1% on the amount above ₹50,000. |
| Education payments | 1% of the transaction value, minimum ₹99 per transaction, on education and government payments (MCC 8211, 8220, 8241, 8244, 8249, 8299) made through third-party apps such as CRED, PhonePe, Paytm, MobiKwik and Freecharge, and on international education transactions. Payments made directly to a school or college — on its own website or at its POS terminal — are NOT charged. |
| Fuel transactions | Revised w.e.f. 1 July 2026. No charge while aggregate monthly fuel spend (MCC 5172, 5541, 5542, 5552, 5983) stays under 50% of the credit limit or ₹50,000, whichever is lower. Above that threshold, 1% on the excess — but where a single transaction ALSO exceeds ₹10,000, the 1% is charged on the entire aggregate rather than on the excess alone. |
| Add-on card | AU levies the same joining and annual membership fee schedule on add-on cardholders as on primary cardholders. |
| Reward redemption | ₹99 + GST on EVERY successful redemption, applicable to all AU Bank Credit Card variants. At the ₹0.25 general redemption rate that fee is worth 467 Reward Points. |
| EMI processing | Xpress EMI: 1% of the amount converted, minimum ₹99 + GST — but zero on Laksya, AU CA and AU CS. Instant EMI: ₹199 + GST on every EMI transaction at a point of sale or through a payment gateway. |
| GST | 18% on all fees, interest and other charges. |
Is the Paytm AU Credit Card Worth It?
Lifetime free with genuinely 2% UPI earning is rare, and the ₹1 point valuation is well-evidenced rather than advertised.
Redeem as Paytm Gold, not on AU Rewardz. The difference is 50% of your balance.
Keep UPI payments under ₹2,000 to stay in the 2% band.
The ₹100 fuel surcharge cap matches AU's entry tier.
AU's late payment charge is 15% of the total amount due, with a floor of ₹10 and a ceiling of ₹1,300. That is unusual — almost every Indian issuer uses a flat slab table. It works out cheaper than the market on small balances (₹300 on ₹2,000, where a slab issuer charges ₹400 to ₹500) and at the ceiling on large ones.
Frequently Asked Questions (FAQs)
What is a Paytm AU Reward Point worth? ₹1 when redeemed as Paytm Gold on the Paytm app, and ₹0.50 when redeemed on AU Rewardz. Both rates are published by AU. Redeeming on AU Rewardz halves the value of your balance.
Why does a larger UPI payment earn less on the Paytm AU card? The 2% band applies only to Paytm UPI transactions between ₹100 and ₹2,000. Above ₹2,000 the rate drops to 1 Reward Point per ₹100 — 1%. The structure rewards frequent mid-sized payments rather than large ones.
Does Paytm AU earn on UPI through other apps? Yes, but at a quarter of the rate — 1 Reward Point per ₹400, against 1 per ₹100 for in-app spending.
What is an AU Reward Point worth? ₹0.25 when redeemed through AU Rewardz, and ₹0.20 if redeemed against gift cards, vouchers or e-vouchers. Both rates are published by AU. Points are valid for 24 months from the date they are earned.
Is there a fee to redeem AU reward points? Yes — ₹99 plus GST on every successful redemption, on every AU card variant. At ₹0.25 a point that fee is worth 467 Reward Points, so redeeming small balances is rarely worth it.
Does this card earn rewards on fuel? No. Fuel earns no reward points on any AU credit card. Above 50% of your credit limit or ₹50,000 a month, whichever is lower, fuel spending also attracts a 1% fair usage charge.
Cards Mentioned in This Article
