Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
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. FinBooster: YES Bank - BankBazaar Co-branded Credit Card also offers its customers the chance to pay their bills through IMPS and NEFT. 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.
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 utilising Mobile Money Identifier and authorised mobile numbers.
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 accessible 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 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 case of P2M, transactions shall be initiated by credit card bill payers via member banking institutions. In case of M2P, transactions are initiated via merchant apps like mobile apps, the website of merchants, WAP site, etc. Such type of transactions require credit card bill payers to provide the registered contact number, OPT and MMID.
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.
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.
This is how credit card payments can be done using the facility of NEFT online.
The NEFT internet banking payment facility provides the following significant benefits:
The main benefits of paying the credit card bill via IMPS is mentioned below:
Yes, you can use the IFSC code to pay the credit card bill via IMPS.
The main benefits of paying the credit card bill via NEFT is mentioned below:
In the case of a transaction done via NEFT, the processing time is up to one working day.
Yes, you can use internet banking to pay the credit card bill via NEFT.
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