How do you make credit card payments? Is it online or offline? If online, what type of internet banking payment methods do you use? A majority of credit card users prefer making credit card bill payments through internet banking today.
Remitting credit card bills through internet banking is preferred over other means of payments in several ways. It is simple and convenient. Payments through internet banking can be through mobile banking, auto-debit, electronic bill payments, debit cards, national automated clearing house, RTGS, IMPS, and NEFT. Each of these online payment options has its own advantages. Let’s understand how IMPS and NEFT work.
What is IMPS?
IMPS stands for Immediate Payment Service (IMP). It is an internet banking payment system that instantly transfers funds among partner banks electronically in the country. The service can be accessible 24/7 is offered even on bank holidays, unlike other options. Funds are electronically transmitted amid member banking institutions via mobiles.
In India, National Payment Corporation of India (NPCI) manages IMPS, which has designed based on the prevalent National Financial Switch network. Funds can be transmitted and received through the system of IMPS utilizing a Mobile Money Identifier and authorized mobile numbers.
Credit Card Bill Payment Through IMPS
Credit card bill payment through IMPS is one of the most commonly used internet banking payment methods. The system fosters immediate fund transfer and can be accessed through several modes, including mobiles, Automated Teller Machines (ATMs), online banking or internet banking, bank branches, and SMS. It assures the 100% safety of credit card payments and is also economical. To be a partner banker of this system, banking institutions should have obtained a legal banking license from the Central Bank of India, which is the Reserve Bank of India.
The participants of the IMPS system include payers or remitters, bankers, National Financial Switch and beneficiaries or receivers. Payers are the parties making payments. In our context, they are credit cardholders. Receivers or beneficiaries are the parties to whom funds are transmitted. In our case, they are billers. Banks are the financial intermediaries that connect credit card bill payers to billers.
Credit Card Bill Payment Through IMPS- How Does The System Work?
Credit card payments are also called as merchant payments. Transactions can be clustered into two categories, which include merchant initiated transactions; also called as PULL or M2P, and customer-initiated transactions also called as PUSH or P2M. In the case of P2M, transactions shall be initiated by credit card bill payers via member banking institutions. In the case of M2P, transactions are initiated via merchant apps like mobile apps, the website of merchants, WAP sites, etc. Such type of transactions require credit card bill payers to provide the registered contact number, OPT and MMID.
How To Pay Credit Card Bills Through IMPS
- The first step is to download the mobile application of your banking institution. For instance, you have to download the mobile application of ICICI Bank if you hold a bank account with this banking entity.
- Once you download the mobile application, you have to login to mobile banking using credentials.
- Click the ‘Bank Account’ button. You shall be provided with a link for the IMPS payment option.
- Click the ‘IMPS’ button and choose the ‘Merchant Payment’ button.
- Furnish the necessary financial details such as MMID, the contact number of billers, and your bank account from which funds are transferred, the billing amount, and your credit card number.
- Finally, hit the ‘confirm’ button. The transaction is successful!
Why Make Credit Card Payments Through IMPS
- Payments can be made instantly, which means your biller’s accounts are immediately credited.
- You can access this facility anytime anywhere.
- The system is not expensive in terms of payment charges like mentioned earlier.
- The system is faster in terms of the processing of payments and is reliable as well.
- The IMPS system is convenient and customer-friendly.
How To Make Credit Card Payments Using An IFSC Code
- Log-in to your internet banking using your credentials.
- Click the ‘Payment and Transfer’ button.
- Choose ‘Payee’ and ‘IMPS-IFSC’. Note: Payees can be chosen from the list of itemised payees.
- Furnish details such as the billing amount for your credit card, credit card number, etc.
Top Five Banks Offering The IMPS Payment Facility
Credit Card Bill Payment Through NEFT
Credit card bill payment through NEFT is another internet banking payment option. NEFT stands for National Electronic Funds Transfer. Being a country-wide remittance service, NEFT enables the payment of credit card bills electronically amid member banking institutions. Credit card payments initiated by credit card users shall be processed in batch-wise under the NEFT internet banking payment system. Like IMPS, the NEFT payment system is administered by the Reserve Bank of India (RBI), which commenced this facility in 2005. If sources are to be entrusted, the facility shall be offered by 101 banking companies at 74,680 bank divisions in India.
Participants of NEFT
The participants of the NEFT payment system include 1) beneficiaries, billers in our context; 2) payers, credit cardholders in our context; 3) banking companies, the financial intermediaries between billers and payers in our context; and 4) the payment network, which is administered by the RBI.
How To Remit Credit Card Bills Through NEFT
- The NEFT internet banking payment facility is only available to the customers, who have registered for the internet banking service. If you have not registered, be sure to be registered to avail this facility.
- You have develop a list of credit card billers. Multiple billers can be chosen.
- Once you have created a list of billers, then you have to choose the bank, the division of the bank, the city, and the IFSC code.
- Finally, you have to furnish your credit card number with the billing amount.
This is how credit card payments can be done using the facility of NEFT online.
Why Make Credit Card Payment Through NEFT
The NEFT internet banking payment facility provides the following significant benefits:
- Like IMPS, NEFT is unswerving and effective.
- The payment charges are lower compared to pay orders or sometimes demand drafts (DDs).
- Under no circumstances, the transactions processed through NEFT can be canceled.
- Payments can be made within one business day from the commencement of payment transactions.
- NEFT is completely a paperless internet banking payment method. It is convenient for customers as well.
Top Five Banks Offering The NEFT Payment Facility
- State Bank of India
- Axis Bank
One of the important aspects to remember while using credit cards is to clear the outstanding dues on time.
When the credit card statement is generated, the bank sends a message with the total outstanding and the payment due date.
After that it's our responsibility to remember the due date and make the payment accordingly. If we don't pay the credit card bill on time, we must pay the late payment fee along with the associated interest. Further, all the new spending we do on the card would accrue interest till the outstanding is cleared.
All this would add up to your actual credit card bill and make it look huge. Therefore, paying your credit card bill on time is imperative to have your credit card spends under control.
Card issuers provide various online and offline channels to make your credit card bill payment with ease and convenience. However, choosing a right channel is important as the processing time varies for each.
Listed below are various online and offline modes to make a credit card payment. Not all the methods are offered by every bank or card issuer. Based on your card provider, you can choose one and plan your payment accordingly.
Methods to Pay Credit Card Payment Online
The Internet has simplified the way we bank. Almost all banks in India have the facility of Internet Banking and some others are taking help of third-party bill payment services to provide online payment channels.
Listed below are various options through which you can pay your credit card bill online.
- Through internet banking
- NEFT/RTGS online funds transfer
- Through BillDesk
- Auto debit facility
- Mobile wallets and payment systems
Methods to Pay Credit Card Payment Offline
When you don't have access to the internet, you can use any one of the offline methods to make your credit card payment.
Listed below are various non-internet ways to make your credit card bill payment.
- By calling customer care
- By walking in to a bank ATM
- Over-the-counter payment
- By drawing a cheque or demand draft
Let's look at each method in detail.
Pay Credit Card Bill Online Using Net Banking
Credit Card payment processing time
Instant (from same bank's savings account)
One of the simplest methods to make credit card bill payment online is to use your net banking account. If you have a savings account with the credit card issuer, your job becomes much easier as you simply need to register your credit card in your existing net banking account and make the payment directly.
Even when you don't have savings account with the card issuer, you can open an internet banking account for your credit card and make payments directly from the online account.
Click the below links to know how to pay credit card bill of major banks using your net banking account.
Pay Credit Card Bill Online Through NEFT
Credit Card payment processing time - Within 1 working day
NEFT funds transfer is another online facility that allows you to make credit card bill payment using any net banking account.
Through NEFT, you can pay credit card bills of a bank using any other bank's internet banking account. The facility allows you to transfer funds from your savings account to the credit card account online.
However, before initiating NEFT funds transfer to your credit card, you need to add your credit card, towards which you're making the payment, as a 'Biller or Beneficiary'.
To add the credit card as a beneficiary, you might need specific details such as credit card number, cardholder name, IFSC code for credit card payments, bank name, branch, address, etc.
Please note that the IFSC code is unique for credit card payments. Please make sure you get the right code before initiating the payment.
Adding a new card would take 30 minutes to 24 hours based on your bank. You need to wait till the card is added and then initiate the NEFT funds transfer.
To know the process for NEFT credit card bill payment of various banks, please follow the links below.
Pay Credit Card Bill Online through BillDesk
BillDesk is an online payment platform which allows you make credit card bill payments without having any online account.
Many banks and credit card issuers use the platform to offer easy and convenient bill payment services for their customers not using the net banking facility.
Through BillDesk, you can pay credit card bills of any bank using a debit card or net banking account of partner banks.
The BillDesk platform of each bank is unique and provides different payment options. You can visit the respective payment page for the list of banks allowed for net banking transactions or debit card transactions.
The screenshot below illustrates HDFC Credit Card BillDesk page along with the list of banks it accepts for bill payment.
Pay Credit Card Bill using Mobile wallets and Payment systems
The recent entrants in the industry, mobile wallets and payment systems, started offering credit card bill payment option on their platforms.
Paytm, Mobikwik, PhonePe, BHIM/UPI, etc., are some mobile payment platforms that provide credit card bill payment facility.
No separate registration is required on these platforms to make payments. You just need to download the app, link your debit card or savings account, recharge the wallet, enter your credit card details and make the payment.
This screenshot illustrates the credit card bill payment interface on Paytm.
Pay Credit Card Bill Online through Auto Debit Facility
Credit Card payment processing time - On the payment due date
If you have a net banking account for your savings account, you can register for the auto debit facility and can rest assured about your credit card dues.
The auto debit facility allows you to provide standard instructions to your savings or current account-holding bank to debit the credit card bill on the same day every month.
While registering for the facility, you can choose either the minimum amount due or the total amount due.
You can register for the facility through your net banking account or by sending a written request to the bank.
Once registered, the auto debit facility will become effective from the immediate credit card payment due date.
The amount will be credited instantly on the payment due date every month.
Use the following links to know how to register for the auto debit facility of major banks.
Offline Credit Card Bill Payment Methods
Pay Credit Card Bill Offline by Calling Customer Care
Credit Card payment processing time - Instant
Some credit card issuers or banks allow you to pay your credit card bill by calling the respective customer care. However, in order to use the channel, you must have a savings or current account with the card issuer or the bank.
If your bank account and credit card are from the same issuer, you can call the customer care to pay your credit card bill.
In most cases, the IVR would guide you through the payment process without human intervention. Hence, your card details and other information remain secure.
However, not all card issuers would provide the facility. Check with your respective card issuer before making the payment.
Payments made through the customer care are typically instant.
Pay Credit Card Bill Offline Through the ATM
Credit Card payment processing time - Instant
If you have a debit card from your credit card issuer or bank, you can walk-in to the bank's ATM to pay the credit card bill.
Visit any nearest ATM of your credit card issuer with your debit card, insert your debit card into the ATM kiosk, select credit card bill payment option and follow the instructions to make credit card payment.
Usually, the bill payment through ATM is instant as the amount gets transferred from your savings or current account to your credit card account.
Pay Credit Card Bill Offline at the Bank Branch Office
Credit Card payment processing time - 1 working day
If your credit card issuer is a bank with a physical office, you can walk in to the nearest branch and make your credit card payment by depositing cash.
Simply walk in to the respective bank branch, fill-in the deposit slip with your credit card details and the bill amount and submit it at the counter.
The payment will be processed within 1 working day.
Over-the-counter payments usually entail a service charge of up to Rs.100 per payment.
Pay Credit Card Bill Offline by Drawing a Cheque/DD
Another offline credit card payment method is to draw a cheque or demand draft (DD) in favour of the credit card account and drop it at any bank branch or ATM drop box.
The cheque or draft should favour the respective credit card account (write the 26-digit credit card number on the cheque) and it should also contain your name and contact number on the reverse side.
If your cheque issuing bank and the card issuer are the same, your cheque will be processed within 3 working days, if they are not the same, it will take 5 working days, outstation cheques will be cleared in 12 - 21 working days.
Hence, make sure to pay your bill in accordance to the cheque clearing timelines so that the payment would reflect on or before the due date.
Benefits of Paying Credit Card Bills Online
- Saves time and effort: Paying your credit card bill online is quick and easy. It saves a lot of time which you would've otherwise spent on visiting the bank or ATM.
- Convenience and comfort: Online payments can be done from the comfort of your own home or office. You can also make payments through your mobile or computer from anywhere around the world.
- Safe and secure: Online Banking is secure with the IPIN or other ways of authenticating your identity. Banks provide safety features that ensures your privacy and identity are protected. It eliminates the risk of losing money or information in the mail or anywhere else.
- Easy records: When you use online banking facilities, everything is recorded instantly and is available for your review anytime you need. All your information is automatically organised and available at one place. This makes it convenient when you're budgeting and filing taxes.
- More control: You can choose to pay the minimum due, the full amount or any amount that you desire when you pay your credit card bill online. You can change your choice with each bill.
- Eco-friendly: Making payments online saves paper, cheques, envelopes, stamps, and receipts. It also eliminates clutter when you receive all your statements and receipts electronically.
Important Tips While Making Online Payments:
- Check your credit card statement- Before you make any payments towards your credit card bill, check your online statement. Ensure all charges to the card are correct and note the exact amount you need to pay on the payment due date.
- Processing time - Always check the time it would take for your payment to be processed when you are paying your credit card bills. For payments made through the bank's internet banking facility, the turnover time is usually the same day. So this option can be used to make payments on the due date without the risk of incurring a penalty. Other online methods can take 1 to 5 working days.
- Provide accurate information-Make sure you are accurate when entering your credit card number, bank account number and other details. Take the time to double-check the information you have provided and make the payment for the right amount.
FAQs on Credit Card Bill Payment:
- What are the consequences of missing credit card payments?
You should never miss paying at least the minimum amount due on your credit card. If you do miss a payment, a fee will be levied. The bank may also increase your interest rate. If you continue to miss payments after notifications and reminders, this could result in your card being blocked till the payment is made in full.
Upon continuous default, the bank might list you as a defaulter and report your account details to CIBIL. This might impact your credit score and hamper future credit opportunities. Banks also have the right to impose legal action to recover the dues.
- When will I receive my credit card statement?
Each bank sets different credit card billing dates. For example, if the billing date on your credit card is the 20th of every month, the bill will be generated on 20th and sent to you.
- Does it mean my bill is zero if I do not receive a credit card statement?
- Which is the fastest method to pay my credit card bill?
- What is the processing time of credit card cheque payments?
Your statement will be sent via post or email, as per your preference. However, if the outstanding amount is less than the minimum amount or when the total due on the card is nil, you might not receive any statement.
Not necessarily. If you haven't spent on your credit card, you may not receive a statement for that month. If you recall spending on your credit card or you are not sure, and you do not receive a statement, please call your bank's customer service to ensure that there is no payment to be made.
The fastest method depends on how long your bank takes to process the payment. Generally, the fastest mode of bill payment is online banking where it is processed instantly.
Cheque payments can take up to 7 working days. Outstation cheques may take up to 21 days. Hence, make sure your cheque is deposited ahead of the due date to avoid missing the payment.