How to Transfer From Visa to Bank Account

Credit cards became a more popular payment method than cash in the UK for the first time in 2019, thanks to the speed and simplicity they bring to in-store and online payments. But what about making payments to another person's bank account using your card? Is it possible to recreate the speed and simplicity of in-store payments when moving money in this way?

Sending money from a credit card to a bank account

Normally, credit cards are only used to pay for goods and services and aren't the prime method of getting money into savings or current accounts. However, there are certain cases where it's more convenient to transfer money from a credit card instead of using a traditional bank-to-bank transfer. This could include:

• Money being needed urgently, for example clearing an overdraft
• Wanting to avoid bank transfer fees
• Sending money internationally to a foreign bank account

It's possible, however, to transfer money straight from your credit card to your or someone else's bank account, although there are a number of things you should be aware of so you don't end up paying too much for your transfer in extra fees.

Methods of transferring from card to bank

There are different mobile apps through which money transfers from credit cards to bank accounts have become quick and easy. You can download these apps to your mobile to make the transfers from the comfort of your own phone - they're available on both Android and iOS devices. Balance transfers through these platforms are also available on desktops, laptops and tablets.

Money transfer credit cards are also available, which are similar to balance transfer cards, but allow you to transfer money directly to bank accounts. This is a feature which balance transfer cards don't have. Money transfer cards give you a period of time to repay the money at 0% interest, in exchange for paying a money transfer fee.

Paysend's credit card to bank account transfers

With Paysend you can transfer money from credit cards directly to a bank account. Here's how it's done:

• Click on the purple 'Sign Up' button at the top right of the page.
• Type in your mobile phone number in the international format (with country code).
• Fill out all mandatory fields (First Name, Last Name, Date of Birth, Email).
• Enter your residential address in your registration country, i.e. if you sign up under a UK phone number, you must provide us with your UK address; if you sign up under a Polish phone number, you must type in your address in Poland, etc.
• Enter the 5-digit code from the text message sent to your mobile phone.

Download the Paysend app now

More information on this process can be found here.

Precautions for transferring money from a credit card to a bank account

Using credit cards to generate credit in your bank account moves away from their intended use, which could cause some unexpected difficulties.

Banks may charge additional fees for transferring money to accounts from credit cards. In addition, defaulting to pay credit card dues after the statement is issued will fetch a fine of 3-4% monthly (or even more) on the outstanding amount. This will cost much more for transferred money in comparison to acquiring funds in a legitimate way.

5 things to think about before transferring funds from a credit card to a bank account

• If you transfer funds using a regular credit card rather than a money transfer credit card, you may have to pay large fees. This is because many card issuers treat money transfers as cash advances.
• For money transfer credit cards there may be high interest on monthly repayments after the promotional period ends. Make sure you pay off the balance within any promotional period to avoid paying large interest fees.
• There may be high initial fees because you pay a percentage of the amount transferred. This is expensive for larger money transfers.
• With funds in your account, you may be tempted to spend money that you can't afford. You need to be careful and limit your spending.
• Make sure you know what you'll need to pay in both fees and interest over the promotional period. If you compare this with other forms of borrowing, you may be able to find a better option.

Although there are certain restrictions and fees involved in transferring funds from a credit card to a savings or current account, it will still be cheaper than opting for a personal loan or withdrawing cash from a credit card that incurs high interest rates and charges.

Based on the capability you require and the amount required to transfer from your credit card to a bank account, you should be able to choose the right method of transfer for you.

How to Transfer From Visa to Bank Account

Source: https://paysend.com/en-us/blog/article-how-to-transfer-money-from-credit-card-to-bank-accounts

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