March 12, 2025 · 14 mins read
Santosh Kumar
Credit cards are a great way to shop smartly while avoiding a burn in your pocket. Money transfer between a credit card to a bank account is a convenient way in case you are facing financial problems or you have urgent expenses or personal emergencies. Though generally intended for transactions and purchases, credit cards also provide cash advance and money transfer features.
While this may be an easy and convenient way to get quick cash, it may attract charges and fees which you may be liable to pay. Let us understand how you can send money from your credit card to your bank account in detail.
You can transfer funds from your credit card to your bank account directly using the net banking app or even over the phone. since the daily and monthly transfer limit varies from bank-to-bank, you would need to check that with your bank to get the updated information. if you are transferring funds to an account with the same bank as that of the credit card, the transfer is almost instant. however, if the transfer is to an account with another bank, then it should take two to three business days.
Money can be transferred by directly accessing your credit card's online banking account. The charges for making a transfer from a credit card to a bank account vary from bank to bank. Follow the procedure provided below:
step 1: open your bank’s website
step 2: log in to your credit card account
step 3: select the transfer option
step 4: enter the amount you want to transfer
step 5: enter the required details mentioned in the form
step 6: follow the prompts to complete transactions
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If you need the cash immediately and do not have access to the internet, the transfer is always a phone call away. The charges for making a transfer from a credit card to a bank account through a phone call will be the same as the amount charged via net banking. Follow the steps provided below:
step 1: call your credit card company
step 2: request for a fund transfer
step 3: confirm the amount you want to transfer to the bank account
step 4: provide the bank account number and other details required
step 5: follow the prompts to complete the transaction
E-wallets like Paytm and Payzapp are digital wallets that allow you to make transactions quickly and securely. These are linked to your bank account and require a KYC to be completed.
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If your bank does not allow you to make a transfer from your credit card to the bank account, don't sweat, there are some accepted hacks around this. Here are a couple of options you can consider:
Cheques: there is a facility known as 'cheque to self' where you can write a cheque to yourself. The money is taken from your credit card and transferred to your bank account.
step 1: include the name of the payee as ‘self’
step 2: include other necessary information as you normally would while writing a cheque
step 3: Deposit the cheque at your bank branch
The applicable fees and charges will depend on the cheque collection and deposit charges levied by your bank.
ATM cash advance: ATM cash advance is a facility that allows you to withdraw cash from an ATM using your credit card and deposit that amount to your bank account.
step 1: withdraw cash using your credit card at an ATM
step 2: deposit the cash at your bank’s branch
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The fees and charges for withdrawing cash using a credit card are generally high and are called cash advance fees. For example, HDFC Bank charges 2.5% cash advance fees on the total amount withdrawn. The cash advance charges vary from bank to bank.
Using a credit card to generate credit to your bank account is not the intended use of a credit card, and generating cash for the bank account through this measure could create difficulty. Though using a credit card to transfer money to a bank account is a way to bypass the payment of hefty charges for cash withdrawal from a credit card, banks have to report customers to income tax authorities who spend more than 2 lakhs per year on credit cards. So, generating free credit might bring the person under the scan of the income tax department and authorities keeping a check on unauthorised practices.
Moreover, defaulting to pay credit card dues after the statement is generated will fetch a fine of 3 to 4% monthly on the outstanding amount. This will cost much more for the transferred money compared to getting a similar fund in a legitimate way.
It’s important you don’t rush to transfer money from a credit card to an account. Interest and other charges might apply, while there may be limits on who you can send money to – and how much.
Always bear the following points in mind and double-check all the details with your bank or credit card company so you know what to expect.
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As with other types of credit card spending, there’s a cap on how much money you can move to a bank account. You won’t be able to exceed your overall credit card limit. Your lender might also put additional caps in place too – for example, restricting you to a certain percentage of your credit limit.
Many types of money transfers include fees. Interest is the main one to look out for each time you transfer money with a credit card. It’s a charge, expressed as a percentage, that applies if you don’t pay off your card balance each month. Interest rates on cash withdrawals can be particularly high, so budget carefully when considering that option.
Check for extra transfer fees whenever you move money from your credit card to a bank account. The exact fee will depend on your lender’s policies and the sum you send. They’re often expressed as a percentage of the total money transfer amount.
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Not all lenders offer the ability to transfer money from a credit card to an account held by another person. As a result, you may wish to contact your bank or credit card company to learn what’s possible – and potentially shop around for a more convenient option.
Alternatively, you could make a bank account deposit through a third-party money transfer service and pay with your credit card.
Estimated money transfer times vary between providers, whether you're going through a bank, credit card company or money transfer service. Don't expect your funds to land in your chosen bank account immediately. It could take a couple of business days before your money transfer by credit card is completed.
Some traditional banks may lack the facilities to send money from a credit card to a foreign account. That’s where third-party money transfer services can come in handy. Simply provide any details requested about your receiver, the destination country and their bank account, then choose credit card as your payment option.
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A balance transfer check is traditionally used to move a balance from a high-interest credit card to one with a low balance or no balance. But you can also use it like a cash advance; rather than using it to pay off a card balance, you'd put that money in your bank account.
It's different from getting a cash advance via a convenience check; a balance transfer check is usually a short-term promotional offer, similar to a 0% intro APR credit card promotion. These promotions might come in the mail as blank paper checks you can fill out and mail in, though you could receive an offer to do the process online.
Borrowing limits: Specific policies on how much you can borrow vary by lender, but you won't be allowed to borrow an amount greater than your credit card's limit.
Process: If you use a physical balance transfer check, you'll fill it out like a personal check and can deposit it in your bank account right away. If you have an online option, you might be able to request the funds be sent directly to your bank account.
Timing: The exact timing for receiving money depends on how long it takes your financial institution to clear checks or transfer funds. Read repayment terms closely if you're using a balance transfer check that has a promotional APR. You'll want to make sure you repay the balance before the promotional period ends; otherwise, you'll pay the remaining balance at the (much higher) normal interest rate.
Cost: If you nab a balance transfer check promotion, you might receive a very low APR or even one at 0%. However, you'll typically pay between 3% and 5% of the check's total amount in balance transfer fees.
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Here are a few of the drawbacks of regular cash advances:
Steep interest rates: Cash advance interest rates are typically much higher than purchase APRs on a credit card. So, if it will take you some time to repay it, you'll pay for it in interest charges.
No grace period: Unlike credit card transactions, cash advances have no grace period, so the interest starts accruing as soon as you take the cash out.
Fees: Most credit cards carry a cash advance fee, which will be either a small flat fee or percentage of the advance amount, with many card issuers charging a 5% fee for every cash advance. If you're taking out large amounts, that can add up fast.
Only take out a cash advance if you absolutely need the money in an emergency and don't have more cost-effective options, and you can repay it quickly to minimise interest fees.
Fund Transfer from Credit Card to Savings Account through Western Union
This works on a similar concept to MoneyGram, and the process steps are as follows:
1: Register with Western Union – Free of cost
2: Login to your profile.
3: Select country, the amount to be transferred and the method of delivery (in this case to the bank account).
4: Enter the bank account information of the receiver.
5: Make a payment using your credit card.
6: A confirmation will come through e-mail along with the tracking number, also known as Money Transfer Control Number (MTCN).
7: The money will be transferred to the recipient's account
Direct transfer to the bank account is subject to the amount, country, currency, regulatory aspects of the bank, local timing and the hours of operation. It may take from 1 to 5 working days to transfer money from your credit card to an account through Western Union.
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This feature is devised mainly to avoid keeping too much balance in your e-wallet. But this could be used to transfer money from your credit card to your bank account. Related steps are below mentioned:
1: Register with Paytm
2: Transfer fund from credit card to wallet
3: Open the Paytm App and go to 'Passbook.'
4: Select the option: ‘Send money to Bank’
5: Select ‘Transfer’ option
6: Enter information regarding the amount, account number, and IFSC
7: Click on the '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.
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A debit card comes from a bank, and the backing funds come from your bank account that is linked to that debit card.
A credit card comes from a bank and generally speaking there are no backing funds in those accounts. If you have a credit balance (where the bank owes you money), then they will eventually have to send you a check for that excess money in that account.
So, the only way to transfer money from a debit to a credit card is where you have a debt balance on your credit card (you owe them money), and you use funds from your debit card's linked bank account to submit a payment to the credit card.
Credit cards, as far as I know, do not allow you to use other credit cards or debit cards to pay down the balance. You must use verified funds from a bank account to pay down the balance.
Below are the simple steps to transfer money directly from your credit card to your bank using net banking services:
1: Visit the respective bank’s official website
2: Log in to your credit card account via net banking
3: Select the transfer money option
4: Enter the transfer amount you wish to send
5: Mention all the required details as indicated
6: Follow the further instructions to complete the transaction
Though there are certain restrictions and fees involved in fund transfer from credit card to a 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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Yes, you can transfer money from your credit card into your current account through Net banking, Wallet transfer, Bank to bank, etc,
Generally, all transactions are completed within three days. However, it may take up to 5 days, depending on a few internal factors at times.
Yes, your credit limit gets reduced after making transactions.
It depends on the interest you end up paying for the transaction. If the interest rate stays somewhere around 1.5%- 2%, it can be pretty profitable.
Yes. A balance transfer is way cheaper compared to taking loans or borrowing money from investors. The process is easier as well. The interest rate varies from one bank to the other. Do a bit of research and get the best interest rate to transfer money in a cheaper way.
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