A credit card is like a loan, where you get a set limit on the card issued. While a credit card can be used at many places instead of cash, it can’t be accepted in case of money orders, stocks or in an emergency. However, this too can be addressed as you can transfer money to your bank account through a credit card. Here are the ways and steps to follow.
See also: How to withdraw money using your credit card?
How to transfer money from credit cards to bank accounts without any charges?
There is a convenience fee associated with transferring money from credit cards to bank accounts. This depends on the method chosen and the credit card company.
Ways to transfer money from credit card to bank account
Net banking
You can transfer money from a credit card to your bank account using net banking. Note, the transferring limit for a day and month differs from card-to-card. So, check all details before you proceed. Moreover, if the credit card and the bank account are of the same bank, transfer of money from the credit card to an account can be instant. Transfer of money from a credit card of one bank to an account of another bank may take some time. While earlier, it used to take two-three working days, things are simpler now, and it is done on the same day. Convenience charges associated with the transfer of money from credit cards to bank accounts may vary from bank-to-bank.
- Visit the credit card issued by bank’s website and log in your credit card account.
- Select transfer option on the page.
- Enter the amount to be transferred.
- Enter other details. Press ‘Submit’ to transfer the amount.
Phone banking
You can also transfer money from credit cards to bank accounts by calling the customer care.
- Call the customer care of the credit card bank.
- Request for a fund transfer from the credit card to the bank account.
- Mention the amount to be transferred and reconfirm it.
- Share details including bank account number. Note, PIN number, or CVV will never be asked to share with the operator on call in any circumstances. These are confidential details and never share them with anyone. You will always have to enter these details into the system when prompted. This information will never be accessible to the customer care personnel helping you.
- Follow directions during the call and continue with the steps for transferring money.
E-wallets
You can use e-wallets like PayTM, MobiKwik, GPay, Amazon Pay etc. for transferring money from credit cards to bank accounts.
- Sign-in to the e-wallet or sign up if you want to start using one.
- Go to the passbook of the e-wallet.
- Select ‘Send Money to the Bank’ option.
- Select transfer.
- Enter the amount to be transferred and IFSC code.
- Click on ‘Send’ to transfer money from your credit card to a bank account.
Transfer money from credit card to bank account: Using Western Union
- Register with Western Union for free.
- Select the country in which transfer has to be made, the transfer money amount and bank account as the delivery method.
- Enter the bank account information.
- Swipe your credit card like a normal transaction.
- You will get an acknowledgement with a money transfer control number (MTCN) on your registered email id and mobile phone.
- By using Western Union, the money transfer takes place depending on the amount, the country to be transferred, the time etc. With Western Union, money can be transferred within five days.
Transfer money from credit card to bank account: Using Moneygram
- First select the recipient and the nation from which the bank account is being run. Give all bank account information and then select the recipient’s full name, bank account information etc.
- Next choose account deposit
- Select credit card under the payment method to make the payment. You will see the exchange rate and the convenience fees that will be incurred.
- If you are ok with this, then continue with the process of transferring the money.
Transfer money from credit card to bank account: ATM cash advance
You can withdraw money from an ATM using your credit card. This process is called cash advance fees. The charges for withdrawing cash from an ATM using a credit card is very high. The fees charged per transaction varies from bank-to- bank.
- In this method, you can withdraw money from your credit card in any ATM and deposit this money into the bank account.
Transfer money from credit card to bank account: Cheque
You can write a cheque for yourself, mentioning the amount to be transferred from your credit card to your bank account. The fees for this service will depend on deposit charges and cheque collection charges that differs from bank-to-bank.
- Fill in other details of the cheque, including amount in words, amount in numerals, signature.
- Deposit the cheque in the bank account’s branch.
While you can transfer money from credit card to your bank account for a fee, most of your day-to-day transactions can be done directly without the need for a money transfer. You can even do your rent payment using credit card every month.
Transfer money from credit card to some one else’s bank account
You can also transfer money from your credit card to someone else’s bank account by registering with Paydeck. While the receiver need not be registered with Paydeck, the sender needs to be. You have to show proof of your PAN Card for the transaction.
Things to know before initiating money transfer from credit card to bank account
Interest rates and transfer fees: Most credit card companies charge a fee for money transfers right at the time when the money transfer is initiated.
Credit limit: Before initiating the transfer, ensure that your bank account has enough credit limit. If you transfer cash by overdrawing your credit limit, you may have to pay interest, additional charges for the overdrawn amount, convenience charge and penalty.
Income tax: In case your credit card exceeds than the limit mentioned, there is a chance that the Income Tax Department may check the transactions you did. Repeated transfer of money from credit card to bank account may invite attention of tax officials.
Credit card due payment: If you don’t pay the credit card dues on time, you may be getting a penalty and also you may have a negative rating in your credit score.
Additional Read:- How to Increase Your Credit Card Limit?
FAQs
Can I withdraw money from an ATM using credit cards?
Yes, you can withdraw money from an ATM using credit cards. However, the convenience charge associated will be high.
Can I transfer money from credit cards to bank accounts in an offline way?
Yes, you can transfer money using a self-cheque or by making a phone call to the customer care of the credit card company.
Can credit card money transfer be done to GPAY?
You can add the credit card information in your GPAY profile and then use credit card to transfer the money.
Can I transfer money from credit card to bank account through ATM?
You can withdraw cash from your credit card using the ATM.
What is the cheapest way to transfer money from credit card to bank account?
Cheapest way to transfer money from credit card to bank account is using cash advance.
What is the fastest way to transfer money?
A wire transfer is the fastest way to transfer money.
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