How to transfer money from a credit card to a bank account

When you’re short on cash, credit cards come in handy. However, credit cards are not always accepted for certain transactions. Mortgages, stocks and warrants are all examples of items that cannot be paid for with a credit card. You can still transfer money from your credit card to your bank account in this situation. Here’s everything you need to know about such a deal.

Source: Paysend

There are two scenarios you may encounter when transferring money from a credit card to a bank account.

when banks allow you to transfer money from your credit card to your bank account

  • You can transfer money directly to your bank account via net banking, money transfer, credit card or phone call, or indirectly via an e-wallet linked to your bank account.

when banks prevent you from transferring money from your credit card to your bank account

  • Checks or ATM cash advances can be used to transfer funds.

Direct deposit to your bank account

You can use the Net Banking app or even the phone to transfer funds directly from your credit card to your bank account. Since daily and monthly transfer limits differ from bank to bank, you should check with your bank for the most up-to-date information. The transfer is almost instantaneous if you transfer funds to an account with the same bank as the credit card. If the transfer is to another bank’s account, however, it should take two to three business days.

internet banking

Direct access to your credit card’s online banking account can be used to transfer funds. The fees for transferring money from a credit card to a bank account vary by bank. follow the steps described below:

First, go to your bank’s website.

step 2: log in to your credit card account;

step 3: choose the transfer option

step 4: enter the amount you want to transfer,

step 5: fill in the required information on the form, and

Step 6: Complete the transaction by following the prompts.

Phone call

If you need money right away and you don’t have internet access, you can always request a transfer. The fees for transferring money from a credit card to a bank account over the phone will be the same as the fees for using online banking. follow the instructions below:

Step 1 First call your credit card company,

Step 2 then request a transfer of funds.

Step 3: confirm the amount you wish to transfer to the bank account;

Step 4: Enter the bank account number and other required information;

Step 5: Complete the transaction by following the prompts.

Indirect bank transfer

Paytm and Payzapp are examples of e-wallets that allow you to transact quickly and securely. These are tied to your bank account and require you to go through a Know Your Customer (KYC) process.

If your bank won’t let you transfer money from your credit card to your bank account, don’t worry; there are well-known workarounds. Here are some possibilities to consider:

Cheques:

There is a feature called “self check” which allows you to write a check to yourself. Funds are deducted from your credit card and deposited into your bank account.

What are the steps to follow ?

step 1: type “self” for the name of the beneficiary.

Step 2: Complete the rest of the required information as you would when writing a check.

Step 3: Take the check to your local bank branch and deposit it.

What are the fees?

The fees and charges you pay will be determined by your bank’s check cashing and deposit fees.

Cash advance from an ATM:

An ATM cash advance is a service that allows you to use your credit card to withdraw money from an ATM and deposit the money into your bank account.

What are the steps to follow ?

Step 1: Withdraw money from an ATM with your credit card.

Step 2: Bring the cash to your bank branch and deposit it.

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