Credit cards are among the most versatile financial tools you can have. This line of credit increases your ability to make purchases. Apart from the beneficial discounts, cashback, and rewards programs, credit cards help pay off unexpected bills when you have a tight budget. In such a case, you can use the basic method of money transfer. An electronic money transfer happens when you opt for a credit card transfer to bank account. This involves your credit card and bank account.
You can do the money transfer online without going to your bank, as services like net banking and UPI payments provides a safe internet facility for money transfers.
How Can One Transfer Money from a Credit Card to an Account Online?
You can use some of the simplest online ways to move money from your credit card to a bank account. Some people may find offline approaches a little overwhelming. For their needs, online methods are best.
Here are some steps you can use if you’re wondering how to transfer money online from your credit card to your bank account
Net Banking: Net banking is the easiest way to add money to your bank account. You can directly transfer funds by logging into your credit card account.
Mobile wallet: This method is quite helpful if you want to move money from your credit cards to your online wallet. And as your digital wallet is linked to your bank account, there won’t be much hassle.
If you’re unsure how to transfer money from a credit card to a bank account online, other e-wallet services and apps, such as Freecharge and Mobikwik, may be helpful.
How Can One Transfer Money Offline from a Credit Card to a Bank Account?
Some people may feel intimidated by online methods. Here are some ways to transfer money offline from your credit card to a bank account.
Cheques – It is a viable choice when using offline methods to transfer money from your credit card to a bank account. Pick the “cheque to self” option to continue if you want to send money to your bank. Include all relevant recipient information on your check. Cheques should be deposited at the nearby bank; you should give the processing time to complete. The fees related to credit card cash withdrawal charges can differ from one bank to another.
ATMs – Use the cash advance feature to take money out of an ATM. Utilise your credit card to make a transfer into your bank account. However, as most banks generally charge 2.5% advance fees in addition to the entire amount, using this technique can be slightly more expensive than the previous option.
Real-Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT)
Follow the actions outlined below to implement these strategies:
- Find the nearest RTGS/ NEFT-enabled branch of your bank and go there as a first step.
- Get a transaction form and complete it with the required information, including your full name, bank account number, and IFSC code.
- Provide the form to the bank staff, and wait while they transfer the specified amount to your bank account.
- The bank employees can charge a specific fee for this approach, which differs from one bank to another.
Also Read: What is the difference between a credit card surcharge and a convenience fee?
You can transfer money from your credit card to your bank account to make payments or cover expenses that cannot be paid directly with a credit card or to avoid additional fees you would have to pay if you use a credit card.
So select a method to transfer money from your credit card to your bank account based on suitability. But remember that you need to make credit card payments for the transferred amount, as it will reflect on your credit card due payment.