Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Credit Card Bill Payment Through Cheque

    Making credit card payments on time every month is one of the most important things that the cardholder needs to take care of. To ensure that cardholders do not miss out paying the credit card dues on the due date, banks provide cardholders a variety of payments modes. The payment modes provided by banks and financial institutions to cardholders include net banking, debit cards, NEFT/IMPS, cheques/demand drafts, through SMS, through bank branches, through post and other online portals. Here, we take a look at how cardholders can make credit card bill payments through cheques:

    How To Make Credit Card Bill Payment Using Cheques

    To make credit card bill payment using cheque, a cardholder needs to write a cheque favouring the credit card and deposit it in the drop box or a cheque payment machine. The drop-box or the cheque payment machine can be located at the bank’s branches and ATMs that exist in the country.

    Advantages Of Credit Card Bill Payment Through Cheque

    Making credit card bill payment through cheques is laced with certain advantages. Some of them are listed below:

    • Cheques are convenient for those who do not have access to internet facilities or online banking.
    • Cheques can be crossed when being deposited towards a credit card payment. This will ensure that the payment is made only towards the particular credit card and eliminates the chances of fraud.
    • Cheques are convenient to make large payments whereas methods like IMPS, RTGS and NEFT have caps on the maximum limit that can be transferred.
    • Cheques can be postdated in effect to schedule the payment for a future date.

    Disadvantages Of Credit Card Bill Payment Through Cheque

    Just like advantages, making credit card bill payment through cheque has certain disadvantages as well. Listed below are some of them:

    • It takes several days for the cheque to be collected and processed by the bank. Therefore, a customer needs to drop off or post the cheque well in advance to ensure they do not miss the due date.
    • Unlike online methods, cheques have to be sent via post, or dropped off at the bank branch or ATM.
    • Customers need to ensure that all the information written on the cheque is correct, or they risk the cheque being sent back. This could lead to missing the due date and incurring penalties.

    Banks That Accept Credit Card Bill Payment Through Cheques

    Most of the top banks that operate in the country accept credit card bill payment through cheques. To name a few are - State Bank of India, Axis bank, HDFC bank, IndusInd Bank, Kotak Mahindra bank etc.

    How To Pay SBI Credit Card Bill Payment Through Cheque?

    To pay SBI credit card outstanding through cheque, the cardholder can drop your cheque at any of the 1,300+ drop boxes across the country. Prior to doing that, the credit cardholder needs to fill the payee name as ‘SBI Credit Card (16-digit credit card number)’ and put in other details like payment amount, date and signature clearly on the cheque. Moreover, the cardholder must write his/her name and the mobile number on the back of the cheque. The time taken for the payment to be reflected in the SBI card account varies for Metro and non-Metro locations. While metro locations are usually processed within 4 working days, non-Metro locations take around 6 days.

    The process of paying credit card bills through cheques is similar for all other banks as well. However, the time taken for the payment to be reflected varies from bank to bank.

    The period taken by other banks apart from SBI, the largest public sector bank are listed below:

    • Axis Bank: The Turn Around Time (TAT) for clearance of Axis bank cheque is 1 working day while TAT for other bank cheque takes around 3 to 5 working days.
    • HDFC Bank : HDFC reflects the credit card bill payment through cheque within 3 working days.
    • IndusInd Bank: The payment is reflected within 4 working days.
    • Kotak Mahindra Bank: Kotak Mahindra Bank usually takes around 5 working days for the payment to be reflected if it is paid through a cheque.

    FAQs on Credit Card Bill Payment Through Cheque

    1. Where can I drop my payment cheque to make credit card bill payment?
    2. The payment cheque can be dropped at the cheque drop-box locations available at the bank branches and ATMs.

    3. How long before the due date should I drop the cheque at the drop box?
    4. The number of days varies depending on the bank. Ideally it is better to drop the cheque five days prior to the due date.

    5. Do SBI charge any fees if I make credit card bill payment through cheque?
    6. Yes, SBI charges a fee of Rs.100 for all credit card payment made through cheques that is less than or equal to Rs.2,000/-. However, if the amount is in excess of Rs.2,000/- there is no charge.

    7. What should I write in place of the Payee Name while making credit card bill payment through cheque?
    8. The individual needs to write the name of the bank from where the credit card is availed followed by the card number. For e.g ‘SBI Credit card XXXXXXXXXXXXXXXX’

    9. Is the number of days taken to reflect the payment of credit card bills the same for all banks?
    10. No, it is not the same. While some banks reflect the payment within 1 day others can take upto 7 days. It depends on the respective banks which allow credit card payments to be made through cheques.

    11. Does FinBooster: Yes Bank - BankBazaar Co-branded Credit Card allow you to make credit card bill payment through cheque?

      Yes, FinBooster: Yes Bank - BankBazaar Co-branded Credit Card allows its customers to make credit card bill payment through cheque.

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