Credit cards offer a great deal of convenience. You can purchase goods and services in advance, and the bank pays for them on your behalf. You have time to pay back the amount, after which you're free to use the card again.
However, sometimes you may be unable to make certain purchases with your credit card. For example, you may not be able to buy stocks or pay for mortgages with your credit card because those transactions do not take place through retailers that accept credit card payments from customers. In such cases, you can transfer funds from your credit card to your bank account instead.
Have you ever wondered how to transfer money from credit card to bank account quickly? Here, we will explain how to transfer money from credit card to bank account in a few simple steps.
You might run into two situations when transferring money from a credit card to a bank account.
When your bank allows you to transfer funds from your credit card to your account
When banks don't let you transfer funds from your credit card to your bank account
You can transfer money directly from your credit card to your bank account in several ways, such as net banking, money transfer apps, phone calls, or even an e-wallet that has been linked to your bank account.
Let's take a closer look at each step!
Transfer Directly From Your Credit Card To The Bank Account
You can transfer money from your credit card to your bank account using an online banking app or a smartphone. The daily transfer limit for each bank, however, can vary. Therefore, it is best to check with your respective bank to get complete information regarding the same.
Time delays can also occur when transferring funds from a credit card to a bank account. If the credit card and bank account belong to the same bank, then the transaction can be instantaneous. However, if they are from different banks, it may take a little longer.
Net Banking
Users can also transfer money from credit card to bank account by accessing the net banking facility of the credit card. The fees for transferring money from a credit card to a bank account vary by the bank.
Follow the below generic procedure:
Step 1: Open the website of the specific bank
Step 2: Log in to your credit card account using relevant credentials
Step 3: Click on the transfer option
Step 4: Enter the amount you wish to transfer
Step 5: Fill the form with all the required details
Step 6: Finish the transaction by following the prompts
Phone Call
In case of emergency and lack of access to the internet, the funds' transfer from credit card to bank account is always a phone call away. The fees for transferring funds from a credit card to a bank account over the phone will be the same as those charged for net banking.
Follow these simple steps provided below:
Step 1: Make a phone call to your credit card company
Step 2: Request for a fund transfer
Step 3: Enter the amount to be transferred to the bank account
Step 4: Provide all the required details such as the bank account number and more
Step 5: Finally, follow the prompts to successfully complete the transaction
Indirect Transfer To The Bank Account
Another way you can transfer money is via e-wallets like Paytm and Payzapp. These digital wallets allow you to make transactions quickly and securely. They require a KYC to be completed and are linked to your bank account.
There are other options available, in case your bank does not permit the transferring of the funds. Here’s how to transfer money from credit card to account offline:
Cheques: You can write a cheque to yourself using the 'cheque to self' feature. Provide all the necessary details and include the payee as ‘self’ before depositing at your bank branch. The funds are then deducted from your credit card and transferred to your bank account.
You will be charged fees and charges based on your bank's check collection and deposit policies.
ATM cash advance: ATM cash advance allows you to withdraw money from an ATM using your credit card and deposit it into your bank account. Cash advance fees are generally high and vary by bank.
Credit card transfers can be less expensive than other options, such as taking out a personal loan or withdrawing cash from your credit card. However, this will vary from bank to bank and also based on the credit card you have. Depending on your needs and the amount of money you plan to transfer, you can choose the best method for moving your money from credit card to a savings or current account. But be aware of the regulatory issues involved in this process.
Yes. You can transfer the money from credit card to bank account easily in most cases. There are offline and online methods available to help you achieve this.
You can easily transfer money from your bank account to credit card using the bank app, net banking, phone call, or e-wallets of mobile banking applications. There are simple steps involved in the processes that are easy and secure.
Offline methods of transferring money from credit card to bank account include signing a cheque, RTGS, NEFT, or using an ATM.
While moving funds from a credit card to a bank account is possible, easier, and less expensive than other methods, doing so on a regular basis may put you in the sights of the bank/income tax department and land you in hot water with them. You must always be cautious and not overdo this practice.
To withdraw cash from an ATM, use the ATM cash advance facility. However, you will need to deposit this amount into your bank account later.
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