How to Transfer Money From Credit Card to Bank Account

14 May 2024
4 min read
How to Transfer Money From Credit Card to Bank Account
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Credit cards are a helpful option when you urgently need money. However, there are certain payments, such as mortgages, buying stocks or sending money orders, which you can’t do with a credit card. In such situations, you have the option to transfer money from your credit card to your bank account. This process allows you to access funds when credit card payments are not accepted. 

This blog aims to help you explore and understand how to transfer money from credit card to bank account.

Ways to Transfer Money From a Credit Card to a Bank Account

There are several ways to transfer money from your credit card to your bank account. These are as follows:

  • Net Banking

If you wish to know how to transfer money from a credit card via net banking, follow the steps mentioned below:

Step 1: Go to your bank's official website or open the mobile banking app.

Step 2: Log into your bank account using your login details.

Step 3: After logging in, go to the credit card section to access your credit card account details.

Step 4: In the credit card section, select the ‘Funds Transfer’ option.

Step 5: Navigate and click on 'Transfer to Bank Account’. 

Step 6: Enter the amount you want to transfer and the bank account details where you want the funds to go.

Step 7: Verify all the details accurately.

Step 8: Confirm the transfer request and provide any required security measures, like the one-time password (OTP).

Review the transaction confirmation and keep note of the reference number or transaction ID provided.

  • Phone Call

Suppose you need cash urgently but do not have access to the internet. In such a situation, your credit can help you. You can quickly transfer money from your credit card to your bank account by making a phone call. Here are the steps you need to follow for making such a transfer of money:

Step 1: Call your credit card company.

Step 2: Request the authorities to transfer your funds.

Step 3: Confirm the amount you want to transfer to your bank account. 

Step 4: Provide your bank account details and any other necessary information.

Step 5: Follow the further steps provided by your credit card company to complete the transfer.

  • Via Offline Mode

The following are the steps to transfer money from credit card to bank account offline:

Step 1: Go to your bank branch with your credit card, ID and bank account details. Ask the teller to transfer funds from your credit card to your bank account. A small fee will be charged for this service.

Step 2: Withdraw the desired amount of cash from an ATM using your credit card. Then, deposit that cash into your bank account using the bank's deposit facility. Keep in mind that ATM withdrawals may have limits.

Step 3: Write a cheque or obtain a money order for the amount you want to transfer. Deposit the cheque or money order in your bank account.

Step 4: For larger transfers, visit or call your bank branch to initiate a wire transfer. Provide the receiving bank's information, including the account number and routing number. A fee will be charged for this service.

Considerations Before Transferring Cash from Credit Card to Bank Account

Here are some of the factors you need to consider before transferring cash from your credit card to your bank account:

  • Credit Limit and Available Balance

Make sure you have enough available credit on your card before initiating a transfer. Remember, transferring funds reduces your available credit until you pay off the amount. Keep track of your credit limit to avoid penalties for exceeding it.

  • Interest Rates and Fees

Be aware of any fees and interest rates associated with the transfer. Credit card companies often charge a processing fee, usually between 1% and 5% of the transferred amount. Additionally, it is important to understand the costs associated with the interest that starts accumulating immediately once the funds are transferred. 

  • Security Measures

Prioritise security when transferring money. Use trusted and secure platforms for transactions, and never share with anyone sensitive information like your credit card CVV, PIN or OTP. Moreover, ensure you are using a secure internet connection for these transactions to safeguard your financial information.

The Bottom Line

Understanding how to transfer money from credit card to bank account is crucial for managing your finances effectively. Whether through net banking, phone calls or any other offline methods, you have various options to access funds when needed. However, it is important to consider the above-mentioned factors when initiating the transfers.

You may also be interested to know

1.

13 Things You Need to Know About Credit Cards

2.

How Do Add-on Credit Cards Work?

3.

How to Activate Your Credit Card Online & Offline?

4.

How to Take a Loan Against a Credit Card

5.

10 Things to Check in Your Credit Card Statement
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