How to transfer funds from prepaid card to bank account

Credit cards are quite incredible when you think about it. They offer you the flexibility of purchasing a service or a product in advance, and the bank pays it for you. You can pay the amount back within the stipulated time provided by the bank and all is good. However, did you know you could also use your credit card to transfer money into your bank account? Wondering about how to transfer money from credit card to bank account easily? To know more, keep reading our blog as we will take you through the steps.

Before we go into analysing if we can transfer money from a card, it is important to understand why one may need to take this step in the first place. At certain times, a credit card doesn’t let you make payments for services such as life insurance payments, mortgages, and others. Therefore, you end up being stuck. Thankfully, by transferring your funds from the credit card to the bank account, you can go forward with these transactions quite easily.

How to transfer money from a credit card when banks allow it

There are multiple ways to get a direct transfer straight from the credit card to your bank account. You can use multiple net banking facilities, money transfer apps, phone call or even an e-wallet which has been linked to your bank account. Now, let us look into these individual processes in a little more detail.

Direct transfer from credit card to a bank account

You can use an online banking app or a smartphone to directly transfer the funds from your credit card to your bank account. However, you should remember that the daily transfer limit of funds can often vary from one bank to another. Therefore, it is better that you check with your respective bank to get complete information regarding the same.

Time delays can also factor in while you transfer money from a credit card to a bank account. If the credit card account and the bank account belonging to the same bank, then the transaction can be instantaneous. However, if they belong to different banks, it may take a bit more time than usual, around 2-3 days.

How to transfer money from a credit card using Net Banking

Here are the Net Banking steps to transfer your credit card money into the bank account:

1. Log in to your bank’s Net Banking website
2. Visit your credit card section within the website
3. Now choose the transfer option that seems the most preferable for you
4. Next, you can proceed to enter the amount that you wish to transfer to your bank account.
5. Enter the rest of the details and information as asked in the form.
6. In addition, make sure to follow the rest of the prompts until the transaction is completed.

Transfer money from credit card to bank account with a phone call

Did you know you could also transfer your funds by making a simple phone call? If not, here are the steps for you:

1. Call the credit card company, and provide the necessary details as demanded by the representatives
2. Now, inform them that you wish to have a funds transfer
3. Confirm the amount that you wish to send across

Other than these methods, you can also write a cheque to yourself. Here are the steps for the same method:

1. On the receiver’s name section, write the name as ‘self’
2. Now include the rest of the information that you would ideally write on a cheque.
3. Finally, deposit the cheque at your nearest bank branch.

However, transferring money from a credit card to a bank account is not an ideal solution. Here is why.

1. It is not the actual purpose of the credit card. It is meant to only make direct payments. Only use this facility in emergencies.
2. If you spend more than ₹2 lakhs on your credit card each year, banks may reach out to the Income Tax departments. If you make frequent transfers from the credit card to the bank account, you might enjoy unwarranted attention from the IT dept.
3. In case, you fail to pay the credit card dues, you will have to pay hefty fines as well.

Therefore, use your credit card only to make direct payments and you will be safe.

Use Airtel Thanks to transfer money to your loved ones

If you want an app to send money from your bank account to your loved ones, then the Airtel Thanks app is the way to go for you. It makes online payments incredibly easy, and instantaneous. It is also quite an incredible recharge app, with multiple offers, discounts, and other services available on it. You can even make utility payments, FASTag recharges and do a lot more with it. Download it right away!

What is a prepaid debit card?

A prepaid debit card is a popular alternative to regular debit and credit cards. As the name implies, you have to preload the card, before you can use it. It lets you spend only the amount that is loaded on to it.

Just like a regular debit card, you can use it to pay for your purchases at POS outlets and online purchases. Prepaid debit cards are safer and more convenient than using cash. Depending on the type of prepaid card, you may or may not be able to reload money on to the card and use it at ATMs.

How does it work?

Buying the card

You can apply for the card at your preferred bank by applying online or contacting the bank representatives. To avail a prepaid ATM card, it’s not necessary for you to have an account with the bank. You will be required to provide basic details like – your name, ID proof and address proof to activate the card.

Using the card

Once you receive the card, you then log into the online portal to setup 3D security and PIN. You can then swipe the card to make purchases at POS outlets, online purchases and ATMs. However, few prepaid bank cards like gift cards cannot be used to withdraw cash at ATMs.

Loading funds on to the card

Generally, you add funds to the card at the time of activating the account. Most cards have minimum limit for the initial load. Once you use the funds on the card, you can reload it using any one of the following methods:

• In-person cash deposit at banks
• Online transfer of funds to the card from a bank account

Common types of prepaid cards:

• Prepaid Cards – These are the basic bank prepaid debit cards and you can reload these cards any number of times.
• Gift Card – Not sure about what to gift your friends and family? Gift the freedom of choice with a prepaid gift card. Load the amount you want to gift on the card and the recipient can use it for their preferred purchases. These cards are single-load and cannot be topped up.
• PayDirect Cards – These cards can be issued by employers to employees, and their monthly salary can be loaded directly on to the card.
• Meal Cards – Businesses can use these cards to disburse meal allowances to employees. This card can be reloaded any number of times.
• Digital Prepaid Cards – These work just like regular prepaid cards, but one major difference is that there is no physical card. Instead, it’s a virtual prepaid debit card, that you can use for funding online purchases.

Who should get a prepaid card?

A visa prepaid debit card is an excellent option for you if you are having a difficult time limiting your expenses. Since this card allows you to spend only what you load on it; there's no chance of overspending on credit.

Prepaid cards also work great for gifting and for monitoring the spending of teenagers and kids while teaching them financial responsibility. Additionally, prepaid cards are an excellent choice for corporate, as it helps employers provide employees with funds for business meals, travel and other miscellaneous expenses, as and when required.

Get in touch with ICICI’s debit card team, to find the right prepaid solution that works for you.

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