Why UPI Payment Fails – Common Reasons & Easy Fixes

The Unified Payments Interface (UPI) has made online payment simple and instant, but not always seamless. For many users, UPI issues like failed transaction requests, stuck payments, and money deducted without confirmation can happen frequently, especially during busy hours or when their banks are slow.

Some common reasons for these UPI failures are technical bugs, incorrect credentials, app-specific bugs, or daily transaction limits. While most of these situations are temporary, they can be frustrating, particularly when money is involved.

This article will explore the nine most common reasons for failed UPI payments and some simple, easy fixes you can implement immediately.

Most Common Reasons Why UPI Payments Fail (With Solutions)

Weak Internet Connection

UPI requires a stable internet connection to function. If you use mobile data or Wi-Fi and the connection is weak, the payment might not go through or hang.

Solution:

• Switch to a stronger Wi-Fi or mobile signal.
• Turn on and off Aeroplane Mode to reset your signal.
• Retry the payment after verifying your network speed.

Bank Server is Down

This may happen when your bank’s servers are under maintenance, or your bank is busy with its server. This could prevent your UPI app from connecting to your bank account.

Solution: 

• Wait for about 10-15 minutes and retry.
• Use another bank account linked to your UPI.
• Check your bank’s server status on the bank’s official website and app.

Wrong UPI PIN

If you input the wrong UPI PIN 3 times, you cannot use UPI for a short time for security reasons.

Solution:

• Tap “Forgot UPI PIN” in your UPI app.
• Follow the steps to reset the PIN with your debit card details.
• Remember to record your new UPI PIN for reference.

Exceeding UPI Limits

Almost all Indian banks put a daily limit (generally ₹1 lakh) or a maximum number of UPI transactions daily.

Solution:

• Check your daily UPI limit in your bank or UPI app.
• Wait 24 hours to reset your daily limit.
• Split large payments into smaller ones, if allowed.

App Issues / Inactive UPI ID

If your UPI ID is not linked properly or if the app is outdated, it will cause failed payments or the app to crash.

Solution:

• Open app settings, and ensure that your bank account is linked properly.
• Update the app using the Google Play Store or the App Store.
• Clear app cache or reinstall the app if the issues are still present.

Wrong Receiver

A wrong mobile number, UPI ID or account details will not send the payment to the receiver.

Solution:

• Verify the receiver’s UPI ID or phone number before making a payment.
• Ensure the payment details are correct by calling or sending an SMS.
• Before making a non-cash payment, use the ‘Verify Name’ feature.

No Balance in Account

UPI Transactions need to have sufficient money in your linked Bank Accounts. Low or zero balances will lead to payment failures.

Solution:

• Check your bank balance on the UPI app or by using SMS banking.
• If needed, add a Fund to your Bank Account.
• Alternatively, try using another bank account linked to UPI with an available balance.

Why Do These UPI Payment Failures Happen?

Now that you know what a failed UPI transaction looks like from instant errors to stuck payments — let’s take a look at why UPI payment failures happen.

In general, UPI payment failures aren’t random. They happen for common issues, such as slow internet access, wrong UPI PIN, issues with your bank server, or app problems.

These are issues labelled as UPI transaction errors, and the good news is that, in most cases, they are simple to troubleshoot by following a few steps.

Important Tips for UPI Users

Remember these important tips to ensure that you are safe and avoid common UPI issues:

• Refunds usually take 3 to 5 working days

It is an automatic refund if your money is debited from your UPI account before the transaction fails. You do not need to raise a complaint in this case, but if the money does not come back after 5 days, you should contact your bank or the UPI app’s support.

• Do not share your UPI PIN.

Your UPI PIN should stay private,  just like an ATM PIN. No bank or app support will ever ask for your UPI PIN. It is also horrible to share your UPI PIN, as someone could use it to steal your money.

• Only use official UPI apps.

You can use apps like: BHIM, PhonePe, Google Pay, Paytm, or any of your bank’s official apps. Do not use other or third-party apps for UPI transactions.

• Always update your UPI app.

Do not keep an older version of the UPI app on your phone because bugs may arise or fail to work properly. Periodically go to the Play Store or App Store to check for updates to the app. 

• Always verify receiver details before sending money.

Double-check the UPI ID or the mobile number of the person you are paying. If the app offers the “Verify Name” option, use it.

Conclusion

UPI is a quick and safe payment method, but it is still subject to failures due to network, app, or bank issues. Follow the steps above to troubleshoot some of the common issues. If the problem persists, the best thing to do is contact your bank, the UPI app or the merchant directly. Always double-check everything before sending money.

Frequently Asked Questions.