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Money Transfer Credit Card in India

Credit Card to Bank Account Transfer

Last Updated 27th Jan 2022

  • Money transfer from a credit card can be done by using third-party platforms such as Moneygram, MobiKwik, Paytm.
  • Convert balance transfer into instalments, and pay in easy EMIs.
  • A balance transfer is cheaper than personal loans and cash withdrawals.
  • Charges for adding money from credit card to the wallet varies from 1% to 3% depending on the platform.
  • Default on repayment will attract high charges ranging between 3 to 4%.
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Transferring Money from Credit Card to Bank Account Online

Transferring money from credit card to bank account is now more easy and convenient. It is subject to certain limits or charges, but it is much cheaper than going for a personal loan or cash withdrawal from a credit card through an ATM that entails elevated interest rates and costs. The right form of moving funds from credit card to account depends on the availability of services, platform’s trustworthiness and the amount needed for transfer. You can use third-party apps such as Moneygram, Paytm, Mobikwik, Freecharge, etc., to transfer money from a credit card to your bank account.

Methods of Fund Transfer from Credit Card to Account Online

People use credit cards for purchasing different goods and services and do not consider it a preferred way to add money in the savings or current accounts. Nonetheless, it is one of the means to arrange funds in urgency when you have nowhere else to turn.

Credit cardholders can transfer money using different apps and other platforms available in the online market. Instant fund seekers can easily download these apps on Android and iOS devices and use them for fund transfer. These applications also work simultaneously on smartphone, desktop, tab or laptop through an integrated network.

Ways to transfer funds from credit card to account:-

  • MoneyGram: Credit cardholders can transfer funds around the world, and approximately 400 banks globally are associated with it.
    • Login using the credentials, and choose the recipient and the country of the receiving bank account.
    • Enter the amount after choosing the ‘Deposit Account’.
    • Choose the ‘credit card’ option for method payment (exchange rates and the charges involved will display if there are multiple currency transactions).
    • Enter the recipient’s bank account details. And then after making payment, the amount will transfer to the recipient’s bank account.
  • Western Union: Credit card holders can use western union similarly as Moneygram to transfer funds directly to the bank account and it's subject to the amount, country, bank rules, timings, transaction time –
    • Instant fund seekers must register with Western Union and log in using credentials.
    • Choose the country and delivery method (the bank account).
    • Enter the receiver's bank account details.
    • Use the credit card to pay.
    • A confirmation on your registered email address along with a Money Transfer Control Number (MTCN).
    • The recipient will receive the money in the bank account entered (1 to 5 working days).
  • E-wallets: Credit card holders can use e-wallets such as Paytm, FreeCharge, MobiKwik.
    • Make an account on the e-wallet platform.
    • First, add money to the wallet from the credit card.
    • Enter the recipient’s bank account details. And send money to the bank account.
    • The fund transfer will complete instantly.
  • There are other apps such as Phonepe for using credit cards but at the point of sales only. Also, you can use your bank’s mobile app for transferring funds from credit card to bank account. For instance, HDFC mobile banking app.

Precautions for Transferring Money from Credit Card to Bank Account

Credit cards are mostly used for purchasing goods and services; transferring money is not the general purpose of the credit card. Although fund transfer from a credit card is still better than cash withdrawal.

Banks report to the income tax department about clients spending more than ₹ 2 Lakh/year on credit cards. So, the credit cards also have their perils. Card holders can come under the tax radar scanner for checking irregular and unauthorised practices.

Defaults on credit card dues after the statement generation will attract a penalty of 3% to 4% of the outstanding amount. This is way costlier than transferring money.

List of credit cards that offer balance transfer

Some of the banks offering balance transfer facility are:

Bank Repayment Tenure Interest Charges Joining Fee
ICICI Bank 3 or 6 months 1.99% to 3.50% Nil to ₹ 1,25,000
SBI 2 or 6 month 2.50% to 3.50% Nil to ₹ 4,999
HDFC Bank 9 to 48 month 1.99% to 3.60% Nil to ₹ 10,000
Axis Bank 3 and 6 months 2.50% to 3.40% Nil to ₹ 10,000
Citibank 3,6,9 or 12 months 2.50% to 3.25% Nil to ₹ 20,000
Standard Chartered Bank 3+ months 3.49% to 3.49% Nil to ₹ 499
HSBC Bank 3 to 24 months 2.49% to 3.35% Nil to ₹ 3,499

All banks offer foreclosure and balance transfer facilities on their credit cards.

FAQs

Can I transfer money from credit card to Bank Account?

Yes, you can transfer the balance from a credit card to a bank account using platforms such as Money gram, Western Union and e-wallets like Paytm, Freecharge etc.

How to add money from credit card to bank account?

You can add money using platforms such as Paytm, net banking, etc. Details to add money are available on the respective official websites.

How to transfer money from credit card to bank account without charges?

Most banks charge interest if you transfer your money from credit card to a savings bank account. However, some banks offer an interest-free period, e.g. Axis Bank does not charge interest on balance transfer if the amount is repaid within 3 months.

Will I know when I should avail a credit card balance transfer facility?

If you have an existing credit card with the balance incurring a high rate of interest, then it is advisable to go for credit card balance transfer to save up on interest payment.

How to get money from credit card to bank account?

You can get money from credit card to bank account using balance transfer or add to wallet facility offered by the banks and third-party platforms.


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Credit Card News - Jan 2022
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    RBL Bank has extended the co-branded credit card partnership with Bajaj Finance till 2026. In addition, the portfolio of co-branded credit cards also crossed Rs. 10 lakhs card mark.
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    RBI has extended the deadline for tokenisation of debit and credit card to July 1, 2022. Earlier, the last date was January 1, 2022.
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    Pine Labs, a merchant commerce platform, has partnered with AU Small Finance Bank to allow credit cardholders to avail of equated monthly instalments offers at the point of sale. As a result, the customers will be able to convert their regular purchase into interest-free EMIs.
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    Axis Bank has seen double-digit growth in GDP and Credit in FY 2024. At the same time, the GDP and credit are seen at 9.5% and 7% in FY 2022. Therefore, the bank aims to achieve GDP and Credit Growth at 8.2% and 8%, respectively.
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    State Bank of India has launched a fitness-focused credit card, SBI Pulse Card. The card provides welcome gifts such as Noise Color Fit Pulse Smartwatch worth Rs. 4999 and other health benefits.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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