Credit Card to Bank Transfer: A complete guide 2025

Credit Card to Bank Transfer is a question that almost every credit card holder asks, whether to do it or not, how to do it, does it affects credit score, etc. A credit card is known to be a handy & convenient payment tool in today’s digital era and with its role in terms of the safety of our own money, it saves us from the hassle of carrying a lot of cash wherever we go.

When we need money in difficult times, the first thing we look at is our credit cards. Apart from earning cashback and reward points, credit cards not only help us in emergencies, but they also make it easier for us to pay for our daily needs, shopping bills, utility bills, etc.

There are certain circumstances where payment through credit cards is not accepted, such as car loan payments, home loan payments, bill payments, etc. where credit card payment is not allowed, so we need to have a balance in our bank account to make these payments. In these conditions, credit card to bank transfer becomes a necessity so in this post we will explain how to do it, whether should we do it, and whether are there better options available. Read

Reasons for credit card to bank transfer

To put it simply, in transactions where the use of credit cards is not allowed and transactions can only be made via bank account transfer, people may look for a credit card to bank account transfer. Here are some important payments where people may look for Credit Card to Bank Transfer:

• Emergency funds
• Bill payments
• Loan repayments
• Cash flow managements
• Investment opportunities
• Travel expenditures
• Digital transactions related convenience

Different Ways to Transfer Money from Credit Card to Bank Account

1. Online
2. Offline

Online

In this section, we will delve into the most commonly used methods for transferring money from a Credit Card to a Bank Account online. These are-

1. Net Banking

Here are the steps to transfer money directly from a credit card to your bank account using net banking:

Step 1) Log in to Your Bank A/C– Access any platform to use net banking either bank website or bank app and log in to your bank account using your login credentials. Always be vigilant when accessing your bank account through net banking, only open the bank’s official website.

Step 2) Navigate to Credit Card Tab– Once logged in, go to the credit card section. This will provide you access to all the required details related to your credit card.

Step 3) Select the Option “Fund Transfer”- In the credit card section, you can choose the fund transfer or a similar option.

Step 4) Select Transfer to Bank A/C Option- Here, you will see the transfer to bank account option. Click on this option to proceed.

Step 5) Enter the Transfer Details– Input the necessary details of the transaction, including the required amount you wish to transfer and the bank account details where you want the funds to be deposited.

Step 6) Confirm the Transfer– Review the details entered to ensure accuracy. If everything is okay, proceed to confirm the transfer. Some platforms may require additional authentication, such as a one-time password (OTP).

Step 7) Await Processing– Once confirmed, the platform will start the transfer process. The time it takes for the funds to arrive in your bank account may vary depending on the bank’s server, so keep an eye on the transaction.

Step 7) Check Your Bank Balance– After the successful transaction, the transferred amount should now be reflected in your bank balance.

Step 8) Check Your Account’s Transaction History– Review your credit card and bank account statement. This will help you stay informed of your financial activities and of any errors on the bank’s part.

Note: Credit card to bank transfer is subjective to banks, many banks do not provide this facility or provide it, it is available only to certain cards, so make sure to check it before proceeding.

• e-Wallet

Among the ways of credit card to bank transfer, doing it through e-wallets is the easiest one. The wallet user has to go through some steps to ensure the completion of the process. e-wallets such as Freecharge, Airtel Money, Mobikwik, PhonePe, Yono SBI, Payzapp by HDFC bank, Amazon Pay, etc. provide options for credit card to bank transfer. The steps required are-

Step 1) Choose the Desired/Preferred e-Wallet App– Once you have selected an e-Wallet, you need to add your credit card details to it. You need to input your credit card number, expiry date, CVV code, and your name same as the card.

Step 2) Add Your Existing Bank Account- After adding your credit card details, add bank account details (account number, bank name, & IFSC code)where you are willing to transfer funds using a credit card. Simply, you need to connect/link your bank a/c to the e-wallet.

Step 3) Cross-Check Your Data– Before you make any transactions, it is essential to ensure that all your entered card and bank details are correct.

Step 4) Enter the Required Amount– Once the e-Wallet is linked to your credit card and bank account, you can enter the required amount to transfer it to your bank a/c. Please note that the amount that can be transferred depends upon the credit limit provided by the credit card issuer for such transactions.

Step 5) Confirm the Transaction– Once all the details are verified, click on the confirm button to complete the transaction.

Credit card to bank transfer through PhonePe app

Step 1) If you have the PhonePe app, Log in. If not, download the official app from the Google Play Store. Make a new account, complete the KYC by providing PAN and AADHAR details, and a video call verification. This process will make you eligible to transfer up to Rs 2,00,000 from your PhonePe wallet to bank account.

Step 2)

Now open the PhonePe app, go to PhonePe wallet choose the Topup wallet option, and fill in the preferred amount. After that, select Proceed to Topup, and select the credit/ debit card option, if not already added PhonePe will ask you to add credit/ debit card to complete the transaction.

Step 3) Enter the credit card number, expiry date, and CVV, and click to proceed, it may be verified by an OTP, once the card is added successfully, select it to Topup the wallet.

Step 4) Now, click on the ‘Withdrawal’ option available at the top corner of the display in the application. To transfer money from the wallet to your bank account, drag your wallet icon downward onto the bank icon.

Step 5) Now, you have to enter the amount you want to withdraw from your wallet into the bank account. Click the proceed button, and the amount from your wallet will be transferred to your bank account. 

In short, it is simple, first, you have to add money to your PhonePe wallet through your credit card, then withdraw that money to your bank account from PhonePe wallet. Just make sure you enter all the correct details and it will done in minutes.

A convenience fee of 1.5–3% plus GST will be charged for adding money to a PhonePe wallet using a credit card. 

Offline

1. Phone Call

If you need cash immediately, and you do not have access to the internet, then the bank can facilitate the transfer through a phone call. The charges for a credit card to bank account transfer through phone call will be the same as the amount charged through net banking. Here are the steps to transfer money from credit card to bank account via phone call:

Step 1) Call your credit card issuer’s customer service number.

Step 2) Identify yourself and your credit card account number to the customer service representative.

Step 3) Request a balance transfer.

Step 4) Provide the bank account number and routing number of the bank account where you want to transfer the money.

Step 5) Specify the amount of money you want to transfer.

Step 6) Follow the prompts to complete the transaction.

Step 7) Review the transfer details and confirm the transfer.

• By ATM Cash Advance Facility

An ATM cash advance is a facility that allows you to withdraw cash from an ATM with your credit card help and deposit the amount into your respective bank account. Here is the procedure–

Step 1) Withdraw the amount of cash that you want to transfer using your credit card at an ATM.

Step 2) Deposit the same at your bank’s branch using the bank’s deposit facility.

Note– This option is typically limited to a cash withdrawal limit given by the card issuer to a credit card.

• Cheques

For those customers who prefer traditional banking ways, can write a cheque to yourself & deposit it. Here is the procedure–

Step 1) Specify the name of the payee as ‘self’.

Step 2) Include other necessary information as you normally would while writing a cheque.

Step 3) Sign the cheque.

Step 4) Deposit the cheque at your bank branch.

Step 5) After the process is done, the amount will be transferred from the credit card to the bank account.

Key Considerations before Initiating fund Transfer from Credit Card to Bank Account

Before transferring funds from your credit card to your bank account, it is important to consider the following factors:

• Fee: There are several types of transaction fees involved in transferring money from your credit card to a bank account. Most credit card issuers charge a processing fee of 1% – 5% of the amount transferred.
• Interest Rate: Interest on credit card cash advances is charged by the bank from the day of the transaction. These interest rates are usually higher than the regular purchase rates on your credit card.
• Transaction limit: If you are going to transfer money from your credit card, you must ensure that your credit card has sufficient credit card limit available. Spending beyond the approved and available limit may incur penalties and additional costs.
• Impact on Your Credit Score: Frequent cash advances can hurt your credit score. It can increase your credit utilization ratio, which is the percentage of your available credit that you’re using and it can be viewed by credit agencies as a sign of financial stress.
• Eligibility: Not all credit card issuers allow balance transfers, and there may be restrictions on the amount you can transfer, it can be done via e-wallets as explained above but charges will be high in most cases.
• Security precautions: you should always prefer reliable and secure platforms for transactions and make sure to not share any confidential information with anyone, such as credit card CVV, OTP, PIN, etc. The internet connection used for online transactions should be secure and private.
• Term & Conditions: Always carefully review the terms & conditions of the balance transfer, including fees, interest rates, and repayment terms.

Fees Associated with Transferring Money from a Credit Card to a Bank Account?

Transaction fee: If one chooses to use a third-party money transfer app or service to transfer money from your credit card to your bank account, you may be charged a transaction fee. These fees may be a percentage of the transferred amount or a fixed fee per transaction.

Cash advance fee: Most banks charge a cash advance fee immediately after cash is withdrawn from your credit card in exchange for facilitating a money transfer on a credit card. This fee is usually a percentage of the transaction amount or a fixed fee, whichever is higher.

Interest fee: Cash advances usually charge interest from the day of the transaction, which is higher than regular credit card purchases. Unlike regular purchases, cash advances usually do not have an interest-free grace period.

Key Takeaways: 

• Transferring money from your credit card to your bank account is considered a cash advance in India.
• Cash advances typically have higher interest rates than regular purchases and may incur additional fees.
• Not all banks offer direct transfers from credit card to bank account via net banking.
• Avoid using a cash advance and deposit method due to high fees and immediate interest accrual. High fees, interest rates, and a negative impact on your credit score are reasons to avoid frequent transfers.
• Consider personal loans, salary advances (if offered), or using your savings as alternatives to credit card transfers.
• Occasional transfers are okay for emergencies, but only transfer what’s necessary and have a plan to repay as quickly as possible.
• Excessive credit use of credit may attract the Income Tax Department’s attention.
• To maintain a good credit score, make sure to pay the fees on time.
• Make sure to take into consideration all the charges, taxes, and fees while adding money to e-wallets, transferring to a bank account, or cash withdrawal as these transactions attract the highest charges.
• Either use facilities like personal loans (if possible) or use a suitable credit card to complete the transaction, there are many credit cards like RuPay UPI credit card that charge less and provide several days of interest fee period on such transactions.
• Do not overdo it, use this facility only in emergencies.

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