Credit card usage is increasing at an alarming rate today. Digital payments have become popular, especially after the demonetization exercises carried out in November 2016. People have realized the benefits of using credit and debit cards. Today, you have a spurt in online banking transactions like never before. Indians are innovative people. They have devised ways to transfer money from their credit cards to their bank accounts without incurring cash advance fees and interest. Some of the popular e-wallet apps have helped them in this endeavor. We shall now look at five such popular apps that people use to transfer money from their credit card to their bank account.
When you discuss e-wallets, one of the first names that come to mind is PayTM. Initially, people used PayTM for recharging their mobiles and for shopping activities. Your PayTM account comes with an e-wallet that you can fuel with money from your bank accounts using credit and debit cards. There are also provisions to withdraw the amounts present in the PayTM wallet to your bank account. Note that you cannot withdraw the PayTM cashback amounts, but it is possible to withdraw other credits to your bank account.
The procedure is a simple one.
- Log in to your PayTM account
- Ensure that you have completed your KYC formalities
- Go to the “Add Money” option and use it to add money to your PayTM wallet. You can choose the credit card option to fund this wallet.
- It is possible to withdraw this amount to your savings account using the withdrawal option.
You cannot withdraw more than a specified amount. However, it is a simple method whereby you can transfer small amounts from your credit card to your bank account. In this way, you can bypass the cash advance fee that banks charge when you withdraw money using your credit card. PayTM charges a nominal rate while transferring funds from your e-wallet to your bank account.
2. Airtel Money
Airtel Money is a similar app that people with Airtel connections use to recharge their mobile phones. It is different from PayTM in the sense that anyone can have the PayTM app irrespective of the telecom provider whereas non-Airtel subscribers cannot install the Airtel Money App.
The working of the Airtel Money app is similar to that of the PayTM app. You can recharge your Airtel Wallet with funds from your credit card. Transferring this amount from the e-wallet to your bank account or other e-wallets like PayTM is easy.
The advantage is that you do not incur bank charges like cash advance charges or interest as you would have done had you exercises the Cash Advance option on your credit card. However, you should note to complete the KYC formalities to use these e-wallet apps properly.
3. Udio Wallet
Udio App is similar to your PayTM and other e-wallet apps like PhonePe, MobiKwik, Amazon Pay, and so on. Download the Udio App from a secure location such as the Google Play Store. On installing the app, you need to complete the registration process and KYC formalities.
After completing the KYC formalities, you can transfer money to the Udio Wallet using your credit card. In doing so, the app generates a virtual Udio Card that has two distinct sections. One section is the Udio Cash section whereas the other is the Udio voucher section. You can transfer money from your credit card to the Udio Cash section.
It is easy to transfer money from the Udio Cash section to your bank account. You have to enter your bank account details and withdraw money from Udio cash to your bank account. The transfer can take some time. However, it is a convenient way to transfer money from your credit card to your bank account.
All these e-wallets function similarly. MobiKwik is another popular e-wallet that people use for recharging phones and paying utility bills. One can transfer funds from one bank account to the other using the MobiKwik e-wallet. You have to reload the wallet using money from your credit card, debit card, or net banking.
Once the money comes into the e-wallet, it is easy for you to transfer it to your bank account. Note that you should complete the KYC registration to be eligible to carry out such transfers. It is for your safety alone.
FreeCharge is a popular mobile e-wallet app. People use this app to recharge their mobiles and DTH connections. This app also allows you to do e-commerce transactions in a way similar to that of MobiKwik or PayTM.
People can use this app to transfer small balances from their credit cards to their bank accounts. On completing the KYC formalities, you can access the e-wallet and activate it by adding money using your credit card. Transferring this amount to your bank account is possible with the withdrawal option.
We have seen five popular apps that allow you to transfer small amounts from your credit card to your bank accounts. These are useful apps because you save on the bank charges when you use the ‘Cash Advance’ option. However, it is better to be careful when using such apps because of the risk of compromising your vital data.