Facing UPI payment failures? Tips to resolve common issues

The Unified Payments Interface (UPI) developed by the National Payments Corporation of India (NPCI) has disrupted the payment landscape in India. UPI has eliminated the need to carry cash by facilitating cashless and quick transactions straight from your bank account. Today, even street vendors and your local kirana stores accept UPI payments for even the smallest transactions.

While UPI has simplified the payment process, it is, after all, a technology-driven solution that can glitch at times. You might face UPI payment issues that can hinder smooth transactions. Let’s understand these issues.

Common UPI payment issues
 

Here is a list of some of the common UPI failure issues that you might face -

• Wrong UPI PIN
• Failure to remember your UPI PIN
• Glitching UPI interface
• Busy bank servers
• Amount debited from your account but not deposited
• Transaction status ‘Pending’

Now that you know the common issues, the next question is - How do you fix them?

The first step in troubleshooting is identification. You need to identify why the UPI is not working and then take the necessary steps to resolve it. So, let’s explore why UPI transactions fail and how to tackle them.

Troubleshooting UPI payment issues
 

Given below are the most common reasons behind failed UPI transactions and the corresponding solutions for the same -

1. Account-related issues

UPI deducts the transaction amount from your bank account and sends it to the receiver's bank account. If your bank account has insufficient balance, the transaction will be declined, and your UPI payment will fail.

Furthermore, no transaction will be permitted if your bank account is suspended or blocked. If you use the account’s UPI ID to make payments, you will get a message that your UPI payment has failed.

Resolution - Always maintain a balance in your savings account if you frequently use UPI as a mode of payment. Check your account balance before conducting a transaction to avoid declines. Moreover, ensure that your account is operative to make transactions against it.

2. Daily limit restriction

The NPCI has set a maximum daily limit on UPI transactions. These limits are as follows -

a. Person-to-person (P2P) transactions or merchant payments - ₹1 lakh

b. Specific categories, like capital market transactions, insurance, and foreign inward remittances - ₹2 lakhs

c.  Investing in Initial Public Offering (IPO) and Retail Direct Scheme, or tax payments - ₹5 lakhs

Moreover, different banks have different limits which can be below ₹1 lakh. Payments beyond the specified limits are not permitted and will be declined.

Resolution - Check the daily UPI limit of your bank account. If you have multiple bank accounts, you can create multiple UPI IDs and make payments once the limit of one account is exhausted.

For instance, if one account has a limit of ₹25,000 and another ₹10,000, you can use both accounts to make payments of up to ₹35,000. However, as specified before, the maximum daily limits will apply to all accounts.

3. Incorrect receiver’s details

Entering the recipient's incorrect UPI ID or UPI-linked phone number will also result in a failed UPI transaction. In fact, if you enter the wrong phone number (which is linked to UPI), the funds might be transferred to the wrong individual. Though your account will be debited, the intended receiver will not receive any money.

Resolution - Always double-check the recipient's UPI ID before making the payment. Try to scan the QR code for payment to avoid errors. If using the mobile number or UPI ID, check the details correctly.

4. Connectivity issues

UPI needs a consistent internet connection to process payments. If your connection is unstable or patchy, transactions will fail.

You might also encounter payment issues if your bank’s server is not responding. You will receive a message stating that your transaction cannot be completed because the server is down or busy.

Resolution - Ensure you have a stable internet connection when using UPI for transactions. If your bank server is down, you can use another UPI-linked bank account to complete the payment. This is possible only if you have multiple bank accounts. If you have only one account and the server is down, you can wait for the server to respond or explore other payment options.

5. Incorrect UPI PIN

Entering the wrong UPI PIN will negate the transaction. You need to enter the correct PIN to complete the transaction.

Resolution - Always remember your UPI PIN and enter it correctly. If you keep forgetting the PIN, you can write it down somewhere safe and secure and refer to it when needed. There’s also an option to reset the UPI PIN if you forget it. However, if you reset the PIN, there will be a transaction limit for the first 24 hours.

6. Technical issues

The merchant portal where you are using UPI payment might be glitching, causing transaction failures. In the case of offline payments, the merchant’s QR code can be faulty or blurred, or the UPI ID might glitch, hindering smooth payments.

Resolution - All you can do is wait or explore other payment options if there are technical issues at the merchant’s end. 

7. Freeze period

There’s a concept of a freeze period in UPI payments when you will either not be allowed to transact or transact up to a specified limit. The common freeze periods are as follows -

a. If you enter the wrong UPI PIN thrice in a row, your account will freeze for 24 hours. You can reset the PIN to complete the transaction or wait

b.  First-time UPI users have a freeze period of 24 hours, during which they can transact up to ₹5,000

c.  If you reset your UPI PIN, there will be a freeze period of 24 hours, during which you will be able to transact up to ₹5,000

Resolution - Try to limit your transactions during the freeze period. Meanwhile, you can pay through other modes or wait for the period to be over.

Troubleshooting persisting UPI issues
 

‘UPI transaction failed’ - Still getting the same message?

While the issues above can be resolved, persisting issues require additional steps. In such cases, you can connect with your bank's customer support department or UPI payment provider. They will help you resolve the issue for hassle-free payments.

To minimise persisting issues, choosing a robust banking partner that facilitates seamless UPI payments and offers quick customer support is better. IDFC FIRST Bank Savings Account can come to your aid in such cases. With a strong digital banking platform, 24/7 customer support, and a comprehensive mobile banking app , IDFC FIRST Bank Savings Account can simplify UPI payments.

Troubleshoot issues for smoother payments
 

Understand the common problems associated with UPI payments and how to tackle them effortlessly. Use the tips mentioned above to troubleshoot potential issues and enable quicker payments. Choose IDFC FIRST Bank Savings Accountfor a reliable payment partner and make UPI payments secure and hassle-free. Open one today and experience a smoother digital payment journey!