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  • Credit Card Bill Payment Through IMPS And NEFT

    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.

    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 utilising Mobile Money Identifier and authorised 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 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.

    IMPS Participants

    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 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.

    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 HDFC 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.

    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.

    FAQs on Credit Card Bill Payment through IMPS & NEFT

    1. What are the benefits of paying the credit card bill via IMPS?

      The main benefits of paying the credit card bill via IMPS is mentioned below:

      • You can access the facility at any given time.
      • Payments are made instantly.
      • Payment charges are low.
    2. Can I use the IFSC code to pay the credit card bill via IMPS?

      Yes, you can use the IFSC code to pay the credit card bill via IMPS.

    3. What are the benefits of paying the credit card bill via NEFT?

      The main benefits of paying the credit card bill via NEFT is mentioned below:

      • Payment charges are lower when compared to DDs.
      • Paperless transactions.
      • Payments will be completed within one working day.
    4. How long will it take for the transaction to be processed via NEFT?

      In the case of a transaction done via NEFT, the processing time is up to one working day.

    5. Can I use internet banking to pay the credit card bill via NEFT?

      Yes, you can use internet banking to pay the credit card bill via NEFT.


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