How to Transfer Money from Credit Card to Bank Account: A Comprehensive Guide

In today’s digital age, credit card usage has surged, and people are increasingly looking for ways to transfer money seamlessly. Whether you need to pay off a debt, cover an emergency expense, or simply move money from your credit card to your bank account, understanding the process is essential. Let’s explore various methods to achieve this transfer efficiently.

1. Using E-Wallet Apps

E-wallet apps provide a convenient way to transfer money from your credit card to your bank account. Here are two popular options:

a. PayTM

How it Works: PayTM, a well-known e-wallet, allows you to add funds to your wallet using credit and debit cards. You can then transfer these funds to your bank account.

Procedure:

1. Log in to your PayTM account.
   1. Ensure that you’ve completed your KYC (Know Your Customer) formalities.
   1. Navigate to the “Add Money” option and use your credit card to fund your PayTM wallet.
   1. Withdraw the desired amount to your savings account using the withdrawal option.
   1. Note that cashback amounts cannot be withdrawn, but other credits can be transferred.

Advantages:

• Bypass cash advance fees charged by banks when withdrawing money using your credit card.
  • PayTM charges a nominal rate for transferring funds to your bank account.

b. Airtel Money

How it Works: Similar to PayTM, Airtel Money allows Airtel subscribers to recharge their mobile phones and transfer funds from their credit cards to their Airtel Wallet.

Procedure:

1. Register using the Airtel Money app.
   1. Access the ‘Passbook’ section within the app.
   1. Choose ‘Send money to bank’ and select the ‘Transfer’ function.
   1. Enter the required amount, beneficiary’s account number, and IFSC details.

Advantages:

• No bank charges (cash advance fees or interest) as with direct credit card withdrawals.
  • Complete your KYC formalities to use these e-wallet apps effectively.

2. Net Banking

If you prefer a direct approach, you can transfer money from your credit card to your bank account through net banking. Follow these steps:

1. Visit your bank’s website.
2. Log in to your credit card account.
3. Select the transfer option.
4. Enter the desired transfer amount.
5. Fill in the necessary information as indicated in the form.

3. Cash Advance (Not Recommended)

While it’s possible to get a cash advance from your credit card, we advise against it due to high fees and interest rates. If you must, visit an ATM and use your credit card to withdraw cash. However, this should be your last resort.

Conclusion

Transferring money from your credit card to your bank account requires careful consideration. Opt for e-wallet apps or net banking for a hassle-free experience. Remember to prioritize privacy, security, and cost-effectiveness when making your choice.

Next time you need to move funds, explore these options wisely.