In today’s dynamic financial landscape, a credit card is more than just a tool for cashless transactions. Especially with a corporate credit card, one of the significant functionalities it extends is the ability to transfer money directly to a bank account. This feature becomes particularly essential in scenarios where instant liquidity is required, with the convenience of paying it back later.
In the Indian financial ecosystem, there are several methods to accomplish this task, each with its own set of procedures, costs, and processing times.
This article will take you through these various methods, helping you understand and choose the best option per your requirement and situation, enabling you to make the most of your corporate credit card.
Understanding Credit Cards and Bank Accounts
Corporate credit cards, a potent tool for businesses, offer spending flexibility. These cards, different from traditional debit cards, allow you to borrow money up to a certain limit. You repay the borrowed amount later, sometimes with interest. Debit cards, on the other hand, directly deduct funds from your linked bank account upon usage. Now, let’s delve into a pivotal feature of corporate credit cards: the capability to transfer money from credit card to bank.
Credit Card to Bank Transfers
When navigating the world of digital finance in India, transferring funds from your credit card to a bank account is a crucial skill to master.
Here are some key steps to guide you through this process.
Initiating the Transfer
The process starts with logging into your net banking portal. Look for options like “fund transfer” or “money transfer.”
Next, enter your credit card details and the recipient’s bank account number.
Verify the transaction details. Once confirmed, the transfer initiates.
The timeframe varies, but typically, the transferred amount should reflect in the bank account within 2-3 working days.
Costs and Restrictions
Be aware this convenience often involves a fee, which varies across banks. Also, daily and monthly transfer limits may apply.
Remember, while this method provides easy liquidity, it is wise to check with your bank about costs and restrictions before proceeding with a transfer from a corporate credit card.
Utilising Money Transfer Applications
Thanks to the proliferation of smartphones, another method to transfer money from a credit card to a bank account is through money transfer apps. Many of these apps are widely used in India.
Log into the app and choose the “Add Money” or similar option. Enter your corporate credit card details and the amount you want to transfer. Confirm the transaction, and the money will be added to your app wallet.
Transfer to Bank
Once the money is in your wallet, use the app’s feature to transfer the amount to your bank account.
Costs and Restrictions
While convenient, these transactions often involve processing fees and may have daily and monthly limits.
ATM Cash Advances
Using a corporate credit card for an ATM cash advance is another method to transfer money. Here’s how it works:
Use your credit card at an ATM to withdraw cash.
Deposit the cash into your bank account using the bank’s cash deposit machine or over the counter.
Costs and Considerations
It is crucial to remember that cash advances usually come with substantial fees. Repayment often starts accruing interest immediately, unlike regular credit card purchases.
Leveraging Cheques or Demand Drafts
Lastly, some credit card issuers allow you to request a cheque or demand a draft against your credit card limit.
Contact your card provider to request a cheque or demand draft.
Once you receive it, deposit the cheque or demand draft into your bank account.
Costs and Considerations
This method might come with fees, and there can be a waiting period before the funds become available in your account.
Also Read: What is Credit Card Interchange Fees?
Navigating through the financial intricacies of a corporate credit card can be challenging. Yet, it is clear that these cards offer a multitude of options to transfer money to a bank account. From traditional bank transfers, leveraging money transfer apps, and ATM cash advances, to requesting cheques or demand drafts, the choice is yours. Keep in mind; each method comes with its costs, timeframes, and restrictions.
Always consult your bank or credit card provider for specific details before transferring money. Irrespective of your chosen method, it is essential to remember that a corporate credit card is a powerful tool. It needs to be wielded with caution. Consider the borrowing costs and commit to responsible usage to avoid financial pitfalls.