When you’re in a pinch for cash, credit cards come in handy. However, credit cards are not always accepted for certain transactions. Mortgages, stocks, and money orders are all examples of items that cannot be paid with a credit card. You can always transfer money from your credit card to your bank account in this situation. Here’s everything you need to know about such a deal.
There are two scenarios that 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 through an e-wallet linked to your bank account.
when banks prevent you from transferring money from your credit card to your bank account
- Cheques or ATM cash advances can be used to transfer funds.
Direct deposit into 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. Because the daily and monthly transfer limits differ by bank, you should check with your bank for the most up-to-date information. The transfer is almost instantaneous if you are transferring 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.
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 outlined below:
first, go to your bank’s website.
step 2: sign in to your credit card account;
step 3: choose the transfer option
step 4: enter the amount you want to transfer,
step 5: fill out the form’s required information, and
step 6: complete the transaction by following the prompts.
If you need money right away and don’t have access to the internet, you can always call for a transfer. The fee for transferring money from a credit card to a bank account over the phone will be the same as the fee for using net banking. follow the instructions below:
Step 1 Call your credit card company first,
Step 2 then request a fund transfer.
Step 3: confirm the amount you want 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 account transfer
Paytm and Payzapp are examples of e-wallets that allow you to make transactions quickly and securely. These are linked to your bank account and require you to complete a Know Your Customer (KYC) process.
What other options do I have for transferring funds?
If your bank won’t let you transfer money from your credit card to your bank account, don’t worry; there are some well-known workarounds. Here are a few possibilities to consider:
There is a feature called ‘cheque to self’ that allows you to write a check to yourself. The 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 payee’s name.
step 2: fill in 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 charges are there?
The fees and charges you pay will be determined by your bank’s check collection 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 cash from an ATM and deposit the money into your bank account.
What are the steps to follow?
Step 1: Get cash from an ATM with your credit card.
step 2: take the cash to your bank’s branch and deposit it.