How to Transfer Money From a Credit Card to a Bank Account in 2022

– How to Transfer Money From a Credit Card –

How to Transfer Money From a Credit Card: A credit card, also termed ‘plastic money, is a payment card issued to customers that enables them to pay a merchant for purchasing product (s). A credit card is also considered an essential alternative to cash. It gives the ease of carrying, as well as paying cash, as the money does not need to be paid upfront by the user.

Many credit cards are accepted globally, making it convenient for frequent travelers to avail themselves at any location worldwide. The increased security features give users some peace of mind since fraud related to credit cards is less frequent.

How to Transfer Cash Advance Money into Your Bank Account

ATM

Many banks and credit unions allow you to take out money for a credit card cash advance via an ATM; you just need to make sure your credit card has a PIN.

If you need this money to go into your checking account, you can then deposit your cash into your account (either at an ATM that accepts deposits or at a branch).

Direct transfer

Some financial institutions allow you to directly transfer funds from your credit card to your checking account. U.S. Bank, for example, lets you complete this process entirely online.

However, many issuers don’t have this option. While this method is convenient, it might also make it a little too easy to take on more debt.

In-person

You may take out a cash advance in person at a branch. If you go this route, you could then deposit the cash into your checking account.

Convenience checks

These are checks your credit card issuer sends you can deposit in your bank account or use to pay for something like you would with a personal check.

They function much like traditional checks, except the money comes from your credit card’s line of credit rather than your checking account.

Methods of Fund Transfer from Credit Card to Account Online

Normally, credit cards are used to pay for goods and services and it is not the prime method to get money in your savings or current accounts, but it is one way to access some funds in case of urgency or to meet one’s financial requirements.

There are different mobile Apps through which money transfer has become quick and easy. You can download those Apps on your mobile and complete the required fund transfer process.

These Apps work for both Android and iOS devices. You can also register in the same Apps through your smartphone, desktop, tab, or laptop and can perform balance transfers online.

The following are some ways to transfer money from Credit card to Bank Accounts online:

Using MoneyGram

You can send money across the globe and in accounts of over 400 banks globally. The steps involved are:

• Select the receiver and the country the bank account is. The complete name of the receiver is mandatory. In case you are sending to your own account, need to provide relevant details of your account, your complete name,
• Select the ‘Account Deposit’ option on the screen and enter the amount to be transferred.
• While selecting the method of payment, choose the option, ‘Credit Card’. (In case the transaction deals with more than one currency, then the exchange rate and fees involved will be displayed on the screen).
• You have to provide certain information about yourself as the sender so that those could be verified.
• Provide information on the recipient’s bank account, name, and other required details.
• The money will be securely transferred to the bank account.

 

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Using Western Union to send money to the bank directly

This works on a similar concept to MoneyGram and the process steps are as follows:

• Register with Western Union – Free of cost.
• Login to your profile.
• Select country, the amount to be transferred, and the method of delivery (in this case to the bank account).
• Enter the bank account information of the receiver.
• Make a payment using your credit card.
• A confirmation will come through e-mail along with the tracking number, also known as Money Transfer Control Number (MTCN).
• The money will be transferred to the recipient’s account

Things to be noted

Direct transfer to the bank account is subject to amount, country, currency, regulatory aspects of the bank, local timing, and the hours of operation. It takes 1 to 5 working days to transfer money from your credit card to an account through Western Union.

Using Paytm (and other e-wallet services like FreeCharge, MobiKwik)

This feature is devised mainly to avoid keeping too much balance in your e-wallet. But this could transfer money from your credit card to your bank account also. Related steps are below mentioned:

• Register with Paytm
• Transfer fund from credit card to wallet
• Open the Paytm App and go to ‘Passbook’
• Select the option: ‘Send money to Bank’
• Select ‘Transfer’ option
• Enter information regarding the amount, account number, and IFSC
• Click on ‘Send’ button and money will be transferred to your account

This is essentially a wallet reload from your card, and most of the cards do not give any reward points for such transactions. However, some HDFC Credit Cards like HDFC Millennia give cashback/rewards on wallet reloads as well.

Online Transferring funds from your credit card to Other Bank Accounts

There are other ways to transfer funds online like using PayDeck. But the major difference is that you cannot pay to your own account using PayDeck. But for paying to any other bank account, it works. Key features of PayDeck include:

• The receiver does not need to be registered with PayDeck.
• You need to provide your PAN number for verification.
• Payment is to be done using your card.
• You cannot transfer to your own account.

 

Though there are certain restrictions and fees involved in fund transfer from a credit card to the savings or current account, still it is cheaper than opting for a personal loan or going for cash withdrawal from a credit card that incurs high-interest rates and charges.

Based on the availability of facilities, apps, and the amount required to transfer, one can choose the right method of fund transfer from credit card to account. But be aware of the regulatory issues involved in the whole process.

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