How to do Credit Card to Bank Transfer? [ALL METHODS]

DISCLAIMER: The following post is made for informational and educational purposes only. It is extremely risky to try these. It has the potential to put you into serious financial debt if misused with wrong intentions. Proceed with caution and with your own justification. You should definitely check out our Credit Cards Disclaimer to know how to use credit cards responsibly.

Many of us own credit cards and actively use them for regular transactions. Most credit cards come with attractive spend-based rewards points and cashback to make users transact more with the cards in the hope of maximizing the rewards.

We keep on getting queries on our FinTalks Facebook Group on ‘How to transfer money from Credit Card to Bank?

Today’s post will be all about ‘Credit Card to Bank Transfer’, what is it, why people do it, what are the risks associated with it, and finally, how to do it.

What is Credit Card to Bank Transfer?

We know every credit card comes with an allocated ‘Credit Limit’ that someone can spend in a month. The more you transact with your card, your credit limit gets reduced, until you utilize your entire credit limit.

To spend more, the user needs to clear off the bill, either partially or fully. The credit limit gets free for re-use as soon as the bill is paid off.

Credit Card to Bank Transfer refers to transferring the allocated ‘credit’ on your credit card to your Bank Account.

Why people do it?

There are mainly two reasons:

Reason 1: Your monthly spending on your credit card is very low, hence you want to increase your monthly spending on the card.
Reason 2: You need some urgent money in your bank account. RISK ALERT!

Decoding Reason #1: Why people want to increase monthly spending on Credit Card?

There again can be two reasons:

  1. The more you spend, the more reward points or cashback you will accumulate on your card.
  2. Your credit limit is very low, and you need to do some spends regularly so that your financial institution offers you a higher credit limit.

Decoding Reason #2: Why people need money from a credit card account?

Everyone needs money, but the point is, why will someone want to borrow money from a credit card account, which needs to be paid off in just a matter of a few weeks?

There again can be two reasons, but both are HIGHLY RISKY AND NOT RECOMMENDED AT ALL.

  1. Investing Elsewhere: Some like to gamble with money. Some like to do planned short-term investments. There are instincts that control every human being. RISKY MOVE ALERT.
  2. You are in Debt: You are in debt and you want an urgent source of money to clear off. EXTREMELY RISKY, STAY AWAY FROM THIS, IT WILL PUT YOU INTO A BIGGER DEBT.

What are the risks associated with it?

Mainly 2 Kinds of Risks are there:

  1. Falling into the Debt Trap: Getting a sudden extra amount on your bank account plays out quite differently psychologically, than how we perceive it in general. It may gradually drag you towards useless spending habits just because you are getting upfront money. The chances of falling into the debt trap are very high.
  2. Getting your Credit Card Blocked: Financial institutions offer us credit cards for purchasing from merchants. They don’t want you to transfer the money to a bank account and use it for other purposes. So, if you overdo it, or if they notice any unusual spending pattern on your credit card, sooner or later they are going to take action against it. Sometimes they issue a warning that you are not complying with the card member terms of use. Sometimes they might directly block your card for further transactions.

Both are risks are of serious nature, and, it is best for you if you just stop reading the post here.

How to do Credit Card to Bank Transfer?

There are multiple ways to do it. This matter has been discussed a few times in our FinTalks Facebook Group. I did an extensive search and listing the available methods for you.

Method 1: NPS Tier 2 Investment:

This method was posted by Ayush Agarwal on FinTalks Facebook Group on 4th April 2021.

NPS stands for National Pension Scheme. Its Tier 2 investment supports investing via Credit Card. This method is primarily based on this. Don’t worry, even if you don’t know about NPS or haven’t done it earlier, the post explains it all.

You can check out the link above to get the details. RISK ALERT! DON’T MISUSE IT.

Method 2: Rent, Fees, Services & Business Payment:

If you are staying in rented accommodation, then you can use the following rent payment apps to send money from your credit card to your landlord’s bank account:

  1. Cred: 1.55% rate, no rent agreement needed.
  2. PayTM Rentpay: 1.56% rate, no rent agreement needed.
  3. NoBroker: 1% rate, might need rent agreement.
  4. Housing: 1.3% rate, might need rent agreement.
  5. MagicBricks: 0.39%, might need rent agreement.
  6. Redgiraffe: 0.39%, might need rent agreement.

As a bonus, most of these platforms keep running various rent payment cashback offers, in partnership with different credit cards, that will allow you to even earn some extra money while doing the rent payment.

You need to enter the bank account details of the recipient or their UPI and choose your desired credit card. The money will be instantly transferred to the bank account.

RISK ALERT! You may also be asked to show rent agreements if your transaction seems suspicious or if you misuse.

Method 3: Using PayTM App

Before I even write this, let me state that PayTM is the king of Account Blocking. They take suspicious activities very seriously and can freeze your account permanently if they notice even a slightly unusual pattern. And by the way, a PayTM Block can arrest not only your PayTM Wallet but also your PayTM Payments Bank Account, PayTM Business Account, as well as your PayTM Money Account. So, do a risk assessment before you even think of attempting this.

Also, let me confirm this: Many people lost their PayTM account access trying to misuse this method. Over to you now.

This method basically has two parts:

  1. Add money to your PayTM Wallet using Credit Card.
  2. Transfer your PayTM Wallet money to your Bank Account.

These two methods, when done individually, are safe to do. But if you are only doing it and repeating this pattern, then your PayTM account will get flagged for sure.

1. Add Money to your PayTM Wallet at 0% Rate:

This was posted by me on FinTalks Facebook Group on 15th November 2020.

You probably know that PayTM charges 2% on adding money to the wallet using a credit card. But there is a nice method to avoid that extra charge at doing it at 0%. You need to download Uber App for that.

Open Uber App and Link your PayTM Account. Go to Uber Wallet > Payment Methods > PayTM > Add Money.

Add as much amount as you want. Pay using any Credit Card.


2. Transfer your PayTM Wallet to Bank Account at 0% Rate:

This part is tricky and can vary from user to user. For some users, there is no charge for PayTM Wallet to Bank Transfer. It is free of cost. You can check your PayTM App to verify it from the Wallet to Bank Transfer section.

If it is 0% charge, you know what to do. If it is 2%, 3%, or 5%, you need to find a PayTM Merchant to whom you can send your PayTM Cash.

PayTM Merchants can accept payments from others via PayTM Wallet, which will automatically be transferred to their bank account at no additional charges.

A side note: PayTM Merchants can directly accept payments from Credit Cards, but it will incur a 1.99% charge. This method is relatively safer than the 2-way method since it is a one-off transaction instead of adding money to the paytm wallet first and then transferring.

All the merchant needs to do is wait till the money gets credited to their bank account. The merchant can choose to transfer the money to the user’s bank account directly via UPI, IMPS, or NEFT methods.

RISK ALERT: If misused, this also puts the merchant account at risk.

Method 4: Using Airtel Money / Payments Bank App (Pay Credit Card Bills with Credit Card)

This method not only allows you to transfer your credit card balance to the bank account but also pay credit card bills with your other credit cards. (Technically speaking, after you transfer money to your bank account via any of the methods listed earlier, you can easily use it to pay credit card bills. This method is just a direct way to do it)

Needless to say, this method is the RISKIEST OF ALL METHODS listed here, especially if you use it for paying credit card bills with a credit card. Your Airtel Money Account can get blocked permanently so your money can get stuck too.

This was posted by Avinash Varshney on FinTalks Facebook Group on 28th March 2021.

You can check out the link given above to see all the details.

Method 5: LazyPay Scan & Pay Method

LazyPay is an app that offers you a pre-approved credit limit that you can use for your regular payments on different websites. It also has a scan and pay feature that allows you to pay to any merchant that accepts UPI payments. It transfers the money from your LazyPay credit to the merchant’s bank account. You can do LazyPay bill payment within 15 days without any additional charges.

This method is self-explanatory. You need a merchant who can accept your LazyPay credit to their bank account. RISK ALERT!

Method 6: Using PhonePe App

This method has partial similarities with the PayTM App Method.

The fundamental idea is this: You add money to your PhonePe Wallet using your Credit Card. Then you transfer money from your PhonePe Wallet to your Bank Account.

The first part is easy and straightforward. You can directly add money to your PhonePe Wallet via Credit Card.

The second part, transferring your PhonePe Wallet Balance to Bank Account, can be accomplished in 2 ways.

1. Buy and Sell Gold:

PhonePe App allows you to buy and sell digital gold. The good thing about it is that you can buy Gold using UPI, Debit Cards, Credit Cards, and PhonePe Wallet. The best part? When you sell Gold it will be credited to your Bank Account directly. How cool is that?

Please note that it can take some time to allocate Digital Gold after you buy. Also, if you misuse it, your account deletion risk remains.

2. Via PhonePe Merchant:

Similar to PayTM Merchant, you can pay PhonePe merchants using your PhonePe Wallet. Any offline merchant using PhonePe QR Codes can also be paid using your PhonePe Wallet. Now the rest is pretty self-explanatory. I am not repeating the details again.

Method 7: PayZapp App

This was posted by Avijit Dandapat on our FinTalks Facebook Group on 1st May 2021.

This is probably the safest of all methods listed in this thread, although we still don’t recommend it. PayZapp themselves advertises it.


The steps are easy:

  1. Load your PayZapp Wallet with any Credit Card.
  2. Click on ‘Send money to Bank’ from your Wallet.
  3. Select the Bank Account, and the Amount you want to transfer.
  4. Click ‘Send’, the money will be transferred to your bank account instantly.


Well, the charges are at the higher end, 2.5%.

But it is way safer than other methods, and if you think, in case you withdraw cash from your credit card directly, the charges will be quite higher than this.

Also, in case you have an HDFC Millennia Credit Card, you will be getting 1% extra cashback for this transaction, so the net fee will be 3.13% for you.

Lastly, there is a transfer limit of 1 Lakh per user per month.

Method 8: Coming Soon!

Thank you for reading. Don’t forget to join our FinTalks Facebook Group & FinTalks Telegram Channel for regular updates on banking and finance.

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