Credit cards make it easy to transfer funds to bank accounts. You should check with your bank to see any particular requirements for this process. For example, the transfer might be possible only on weekends or between 8 am and 6 pm, depending on the bank. However, it may be possible for your bank to complete the transfer without needing any additional information from you. There are other ways to send money from credit card to bank account.
The same can be done in multiple ways. The Paytm platform allows 4% charges to be paid through credit cards to bank accounts instantly within minutes through Paytm. Paytm does, however, maintain limits on the amount of cash you can pay using their platform.
Credit cards can be used to pay bills online and shop, and they can be used to withdraw cash, within the limits of the card, from the branch of the card issuer bank, but not to transfer money directly to any bank account. If your credit card does not offer this feature, you should contact your bank directly.
Sending cash from credit cards to bank accounts
Balance transfer
The balance transfer allows users to instantly receive their available credit limit into their bank account directly from their card issuer without sharing their card details, credit card billing cycle online. You may be charged anywhere between 3.5% and 5% per month for the same.
In order to lower their interest rates and to receive better benefits, customers transfer the amount of debt they owe from one credit card to another that offers a lower interest rate and a rewards program to earn points and cashback. Many credit card companies waive balance transfer fees during the credit card billing cycle.
Features on mobile wallets
Making the transaction can be accomplished with a Mobile Wallet Service like Paytm, Mobikwik, or PayZapp. Per transaction, the charges & limits range between 2% and 7%. Transferring money between credit cards and bank accounts can be done through E-wallets such as Paytm, MobiKwik, Payzapp, etc.
From your debit/credit cards, you can only transfer the money into your bank account after adding the amount to your wallet. Please ensure that you complete your KYC on the application to use the service.
As far as costs are concerned, this is the cheapest method. Due to various factors, including the country you live in and the credit card you use, there are numerous limitations on how much and in what currency can be deposited into your account.
ATM withdrawal
In some instances, the first two options might not work. In those cases, you can simply withdraw cash from the ATM using your credit card. You can either spend the cash on the necessary purchases or, you could put it directly in your bank account via deposit. It may be extremely expensive as you will be charged a high fee for the cash transaction.
Net banking
Direct access to the online banking account associated with your credit card allows you to transfer money. Banks charge varying fees for transfers made between credit cards and bank accounts. Here is how to do it:
- Visit the website of your bank
- Log into the account associated with your credit card
- Choose the transfer option
- Your desired transfer amount is entered here
- Add in the required information in the form
- Complete transactions by following the prompts
Important points to keep in mind
- It is possible to transfer funds from a bank account to a credit card account when banks allow it.
By using net banking, credit cards, phone calls or money transfers, you can make a direct debit from your bank account or indirectly through an e-wallet that is linked to your bank account.
- A bank restricts the use of credit cards for bank account transfers.
Cheques and cash advances from ATMs are two ways to transfer money.