Conventional Uses of Credit Cards

Everyone is aware of what a Credit Card is. It is a plastic card issued by a bank or a Credit Card issuing company to enable people to purchase products offline, as well as online without having to pay cash. The prime objective of the Credit Card is to enhance the convenience factor for the customer. Credit Cards also provide options to customers to pay utility bills online, convert lump sum purchases into equated monthly instalment (EMI), pay restaurant bills, purchase movie and travel tickets, and so on. Some Credit Cards also allow customers to avail Personal Loans against the card. Almost all Credit Cards allow cash withdrawals at ATMs. In short, Credit Cards make it easy for customers by facilitating cashless transactions.

Is it possible to transfer funds from the Credit Card to bank account online? Yes, it is possible to do so.

Transfer Money from Credit Card to Any Bank Account Online

Though a Credit Card is a useful instrument, it does not permit specific transactions such as:

  • Repayment of loans
  • Payment of other Credit Card bills (the balance transfer procedure is a unique facility)

These transactions require payment through bank accounts. Under such circumstances, transferring funds/money from your Credit Card to the bank account online is an excellent option.

There are various methods like MoneyGram, Western Union Transfer, and e-wallets like MobiKwik, PayTM, and others that allow the transfer of money from Credit Cards to bank accounts online.

MoneyGram

MoneyGram does not allow you to send money from India. You can only receive money in India through MoneyGram. However, if you are sending money from abroad, you can use your Credit Card to send money to a bank account online. The process is a simple one.

  • Locate a MoneyGram agent in your area
  • The agent will contact you to complete the formalities
  • Provide the following information:
    • Your ID proof
    • The full name of the recipient and the bank details such as account number, name of bank and branch.
    • Your recipient's location
    • The amount you want to remit along with MoneyGram fees
  • Complete the transaction using your Credit Card
  • The agent will share the 8-digit reference number with you
  • Provide this reference number to the recipient
  • The funds will be credited to the bank account of the recipient

Western Union

Western Union is similar to MoneyGram as it does not permit transfer between two accounts in India. However, you can send money abroad to your loved ones' bank account. Similarly, you can remit funds to India from abroad using your Credit Card.

  • Visit the Western Union official website to register your profile
  • Verify your profile before attempting to remit funds
  • If you are registering in India, follow this procedure to verify your profile:
    • Registering your profile on Wu.com is free
    • You have to provide your full name and residential address along with other details like phone number, email ID, country of birth, date of birth, annual income, occupation, PAN, and nationality.
    • Visit the nearest Yes Bank branch with the relevant KYC documents to complete the verification.
  • On successful registration, you can remit the funds to the beneficiary's account
  • Select the destination country and the mode of delivery (credit to the bank account)
  • Add/select a beneficiary
  • Select the payout method (in this case, Credit Card)
  • Complete the payment after reviewing the transfer details
  • You will receive a Money Transaction Control Number (MTCN)
  • Share the number with your beneficiary. It is also useful to track your fund transfer 

Similarly, you can remit funds from abroad to any bank account in India.

E-wallets

Nowadays, people use e-wallets to make payments. Some of the popular e-wallets are PayTM, MobiKwik, Phone Pe, G-Pay, and so on.

PayTM

PayTM users who have completed their KYC verification can refill their PayTM wallet with funds from their Credit Card account.

  • Login to PayTM using your PayTM credentials
  • Transfer funds from Credit Card to your PayTM Wallet
  • Open PayTM app and proceed to 'Passbook'
  • Choose the option 'Send Money to Bank'
  • Select Transfer
  • If you have registered your bank details, the amount is credited to your bank account
  • Otherwise, you have to register the bank account with PayTM to receive the funds

PayTM and other mobile wallets restrict the quantum of such transfers to 20,000.

MobiKwik

MobiKwik is similar to PayTM in its functioning. Register with MobiKwik and complete the KYC verification to be able to transfer funds from your Credit Card to your bank account through the MobiKwik wallet.

  • Login to MobiKwik
  • Add money to your Digital Wallet using your Credit Card
  • Tap on the 'Transfer Money' feature on the MobiKwik app
  • Select the 'Wallet to Bank' option
  • Enter the beneficiary name, account number, and IFSC number
  • Click on the 'Continue' option to complete the transfer

FreeCharge

FreeCharge works similarly. Register with FreeCharge by completing the KYC formalities.

  • Login to your FreeCharge account
  • Recharge your FreeCharge Wallet using the Credit Card option
  • Tap on the 'My Account details' option
  • Tap on the balance figure
  • Click the 'Withdraw' button and choose your bank account
  • If you have not added the bank account, you can do so now
  • Tap 'Withdraw' to complete the transaction

PayZapp

PayZapp is another KYC-approved wallet that enables the transfer of funds from Credit Card to a bank account. 

  • Download the mobile app on your phone and register with PayZapp
  • Verify your KYC
  • Open the app and click on 'Pay/Send Money'
  • Select the Bank Icon and complete the details and amount
  • Click 'Continue' to complete the transaction

This app does not permit transactions more than 5,000 on a single occasion and not more than 1 Lakh in a month. This app works only between 3 am to 9 pm.

PayDeck

PayDeck is a unique facility that enables you to transfer funds from your Credit Card account to a third-party account. It does not permit 'same beneficiary' transfer.

  • Create a PayDeck account
  • Enter the recipient name, bank details, and amount to be transferred
  • PayDeck will send the invoice to the payer via email and SMS
  • The payer has to register on PayDeck to pay the invoice
  • PayDeck charges a convenience fee of 2.50%
  • The recipient receives the money after you complete the payment of the invoice

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