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Paying Bills with a Credit Card: What's Allowed and What Isn't

Renish Mithani's profile photo Renish Mithani
4 min read
Reviewed by Darshil Chauhan Last reviewed 13 October 2026 Data verified 13 October 2026
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Which bills can you pay via credit card?

Most recurring Indian bills can be paid via credit card:

  • Electricity: Yes. Through BBPS, the discom website, or apps like Paytm, Amazon Pay, PhonePe.
  • Gas (PNG/CNG): Yes. Through the gas company website or BBPS.
  • Water: Yes (in most cities). Through the municipal body website or BBPS.
  • Mobile postpaid: Yes. Through the carrier app, website, or BBPS.
  • Broadband / landline: Yes. Through the ISP website or BBPS.
  • DTH: Yes. Through the DTH operator website or app.
  • Insurance premiums: Yes. Through the insurer website, agent, or aggregator.
  • Credit card bills: Yes (for paying another card’s bill). Through BBPS or netbanking.
  • Rent: Yes, but with conditions. Through RentPay, NoBroker, or specific card-rent-payment integrations.

The right payment method determines how much cashback you earn.

The cashback rates by payment channel

Via Amazon Pay (using Amazon Pay ICICI)

2% cashback on all Amazon Pay bill payments. No cap.

Via Flipkart (using Flipkart Axis)

5% on Flipkart bill payment section (limited partners). Cap: ₹500/cycle across all 5% earn.

Via SBI Card bill payment (using SBI Cashback)

Online bill payments earn 5% under the broad online category. Cap: ₹5,000/cycle.

Via Paytm / PhonePe / other wallets

These often charge 0.5%–1% for credit-card bill payments. The fee can eat into the cashback.

Via BBPS directly

BBPS may not earn any credit-card cashback. The MCC may not qualify. Direct payment to the utility via your bank’s credit card may earn 1%–2% if the MCC is retail.

The smart routing

Electricity

Best: Amazon Pay ICICI via Amazon Pay (2% cashback, no fee). Alternative: SBI Cashback via the SBI Card website (1%–5% depending on merchant). Avoid wallets with surcharges.

Gas (PNG/CNG)

Best: Amazon Pay ICICI via Amazon Pay (2% cashback). Alternative: SBI Cashback via BBPS (often 5% on online category).

Mobile postpaid

Best: Amazon Pay ICICI via Amazon Pay (2% cashback). Alternative: HDFC Millennia via the carrier website (1% baseline). Avoid carrier-specific wallets if they charge a surcharge.

Broadband

Best: Amazon Pay ICICI via Amazon Pay (2% cashback). Alternative: SBI Cashback via BBPS (often 5%).

Insurance premium

Best: SBI Cashback (5% on broad online category). Alternative: HDFC Millennia (1% baseline, capped ₹1,000/cycle). Avoid aggregators with surcharges.

Rent

Best: HDFC Diners Club Black (rent payment via specific property managers, no surcharge). Alternative: SBI Cashback via NoBroker or RentPay (1%–2% after surcharge).

The rent-payment math

Rent payments via credit card carry surcharges of 1%–2% on most platforms. Example: ₹30,000 monthly rent. Surcharge: 1% = ₹300. HDFC Diners Club Black earns 5 EDGE Miles per ₹150 = ₹1,000 cash-equivalent. Net: ₹700 positive. The cashback exceeds the surcharge. But the math depends on your specific card and platform.

Limits and exclusions

Some bills earn reduced or zero cashback:

  • Government-related payments: 0%. Tax payments to the IT department are excluded as government transactions.
  • Insurance premium on company cards: often earns 1% baseline only.
  • Rent on certain platforms: 1% baseline if the platform is excluded from the accelerated earn.
  • Mobile postpaid on some wallets: 0.5%–1% baseline only.

Read your card’s MITC for the specific exclusions.

The BBPS route

BBPS (Bharat Bill Payment System) is the RBI-mandated bill-payment infrastructure. Most utility companies accept payments via BBPS. The MCC for BBPS transactions may be excluded from credit-card rewards on some cards.

For the highest cashback, route through Amazon Pay (2% on Amazon Pay ICICI). Amazon Pay’s bill payment section uses partner channels that post under retail MCCs, which earn 2%.

The annual savings

A household paying ₹15,000/month in bills (₹5,000 electricity, ₹5,000 gas + water, ₹5,000 mobile + broadband):

Amazon Pay ICICI (2% on all): ₹15,000 × 2% = ₹300/month = ₹3,600/year.

Compare to HDFC Millennia baseline (1% capped ₹500/cycle on offline = ₹6,000/year on ₹30,000/month spend). Only ₹6,000 of the bills qualify. The rest earns 0% or 1%.

Amazon Pay ICICI’s 2% on bill payments is the cleanest cashback on utility bills.

Bottom line

Bill payments are a real cashback opportunity, often missed. The right card for bill payments depends on the bill type and payment channel.

Amazon Pay ICICI’s 2% on Amazon Pay bill payments is the cleanest, broadest option. SBI Cashback’s 5% on broad online covers more merchants but has a cap. For rent payments, HDFC Diners Club Black or SBI Cashback via NoBroker or RentPay works, but surcharges eat into the cashback.

Annual savings on ₹15,000/month of bills: ₹3,000–₹6,000 with the right card.

Sources

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