Credit Card Bill Payment in India

The internet has simplified banking. It has made it very easy to make purchases online and also make the requisite payments online. This has helped significantly in making credit card bill payments through web-based options. These payment options include:

• Online Banking/Internet Banking/Net Banking

Credit card bill payment can be made through online banking in a quick and easy way. This method, also known as internet banking or net banking, allows payment through online account transfer:

1. You must log in to the card issuer’s net banking portal using your customer ID and Password
2. Go to the bill payment option and select internet banking as the payment method
3. You will be redirected to the internet banking facility of the bank through which you wish to make the payment
4. You can choose to pay the minimum due amount, the total amount due, or an amount of between the two
5. The payment is processed in 3-5 business days

• NEFT

NEFT or National Electronic Fund Transfer allows one-to-one transfer of funds across the country. NEFT facility can be used to make credit card bill payment as this scheme makes it possible to transfer funds electronically from any bank branch to an account with any other bank branch in India:

1. In order to make payment using this method, you must log in to the online banking portal of the bank through which you wish to make the payment
2. Select NEFT as a mode of payment and add the beneficiary. You should use the credit card number as the payee account number and the IFSC will be given on your credit card issuer’s website
3. You can also call the customer care department of the bank to find out the IFSC. Enter all details correctly and make the payment
4. NEFT payment made during working hours is credited on the same day. However, payment made after working hours is credited on the next business day.

• UPI

UPI is one of the easiest ways to pay your credit card bills. To use this method, every user has a unique Virtual Payment Address (VPA), which acts as a username to send or receive money. At the time of payment, you are required to enter the desired VPA to send the money. Most of the card issuers provide this facility, where you can pay your credit card bills just by entering the VPA. You can also pay your bills through UPI via apps like Cred, Google Pay and PhonePe.

• Bill Desk

Banks have also tied up with online payment companies in order to provide convenient ways to pay the credit card bill. It offers a secure and convenient way to make payment from any bank account to the credit card account. Once you select your bank and enter the card details and the amount to be paid, you are automatically redirected to the bank’s payment interface. Here, the transaction is authenticated before final payment with an OTP sent to your registered mobile number or email ID.

• Mobile Banking

Banks have optimised their websites for mobile phones. This way, you can access the bank account from any mobile device (on the mobile site) with an internet connection to make payments. The interface of a mobile banking website is user-friendly and you can make the credit card bill payment conveniently. Just like the internet banking option, you can make the payment by logging into it and authorizing the payment.

• Mobile Application

Banks have also rolled out mobile applications to make banking easier for users. The same can be used to make credit card bill payments. All you have to do is download the mobile app, log in to it using the unique customer ID and password and choose credit card payment option to pay the requisite amount. Payment can be made from any location at any time of the day. Mobile apps of established banks are available on all major mobile operating systems – Android, iOS, and Windows.

• Standing Instructions/Auto Debit

You can set standing instructions on your savings/current account to automatically debit the credit card payment amount. Like all the other options, you can choose to pay the credit card bill in full or pay only the minimum due amount every month on a specified date or on the payment due date. This way of payment ensures that you never default on credit card bill payment or incur any late fee as long as the bank account has sufficient funds. It also relieves you from the responsibility to keeping track of every credit card bill. Payment is automatically made to the credit card account.

• Visa Money Transfer

Also known as Visa Credit Card Payment, this innovative service allows transfer of funds from the customer’s bank account to any Visa credit card issued in India. This facility makes it possible to wire money within 3 business days to pay the credit card bill (only for those credit cards powered by Visa). A nominal fee is levied by the initiating bank for using Visa Money Transfer facility. The transaction limit for each Visa Credit Card Payment transaction is ₹ 49,999.

• ECS

ECS or Electronic Clearance Service is another way to pay the credit card bill. It is similar to the auto debit method of payment. It allows you to give standing instructions/authorise to debit a non-credit card issuer bank account every month to pay the credit card bill. Electronic Clearance Service gives the option to pay the minimum due amount, total due amount or a fixed amount.

• Debit Card

You can also use the debit card to clear the credit card dues. However, only a few credit card issuers offer this facility. You must check with your bank in advance if you are planning to make credit card bill payment through your debit card.

• Phone Banking

To use this option to make a credit card bill payment, you need to call the phone banking helpline of the bank in which one holds an account and request for a fund transfer to pay the credit card bill. The IVR and phone banking officer will ask for personal details for authentication. Assistance at the phone banking hotline is usually is available 24×7, every day of the year.

There are still several ways to make offline payments. These modes are generally slower, and often take 2 or more days to show up on your account. The most common methods are described here.

• Cheque Payment and Demand Draft

The traditional way to pay your bills is still a viable option to pay your credit card bills. The credit card number is listed as the payee name on both cheques and demand drafts. They can be dropped off at the bank, at special check drop-boxes, and in some cases, even in the ATMs of the issuing bank. This method does have the drawback of having the slowest turnaround time. Payments may take over a week to reflect in your account.

• Cash Payment

Cash payments may be made directly at a branch of the issuing bank. Paying cash at the branch usually reflects by the end of the business day but paying through a bill payment service might take 1-2 working days.

In addition to these methods, some banks also offer a collection option to their premium customers. A bank executive arrives at your home or office and collects the payment in person. Payments are usually accepted as cheques or cash. While it is good to have this option, it is rarely useful or convenient. Payments made in this way usually take the same amount of time as the instrument used to make the payment plus an additional working day. You may also have to pay a nominal fee to avail this service.

• Processing time – Make sure you check the processing time of your credit card bills. If you have made your credit card bill payment through internet banking, the turnover time is usually the same day whereas other online bill payment methods may take up to 1-5 working days.
• Check your credit card statement – It is imperative to check your online statement before you make any payments towards your credit card bill.  You must check the amount you need to pay on the payment due date.
• Provide accurate information –  When you enter your credit card number ensure all the details are accurate in order to avoid any discrepancies in paying the credit card bill.