Can I Transfer Money From A Credit Card To A Bank Account?  - NerdWallet Australia (2024)

Yes, it’s possible to transfer money from your credit card to your bank account through a cash advance, but it’s not recommended.

Good budgeting and money management won’t prevent unexpected expenses, but knowing you have put money set aside for these scenarios will give you peace of mind and reduce stress. Confidently managing your personal finances, however, and having a system in place that works for you can take time to set in motion.

For unplanned expenses, you might decide to use your credit card to transfer money to your bank account. There’s nothing wrong with this approach, so long as you pay it off as soon as you can, ideally within the interest-free period. The strategy: Put the expense on your credit card, earn rewards points and repay the total balance without interest.

But what if you can’t use a credit card? You’d need to transfer money from the credit card to a bank account. Although it’s the same credit card, this is a different scenario with costs and considerations. It is possible to transfer money from your credit card to a bank account, but it’s not recommended.

Cash advance vs balance transfer

When you withdraw money from your credit card, it’s called a cash advance. This is done either as an ATM withdrawal or an online transfer from a credit card to a debit account. Every time you do this, you’re charged a cash advance fee, around 3% of the value of the transaction. This amount also incurs interest from that day, rather than after the usual 55-day interest-free period.

Don’t confuse a cash advance with a balance transfer. A balance transfer is when you move debt from one credit card to another credit card to consolidate debt and secure a lower interest rate.

A balance transfer aims to reduce interest charges over the long-term, while a cash advance is a short-term decision to allow you to use the credit card as a cash source.

» MORE: The real cost of a credit card cash advance

Types of cards that allow transfers

Most financial institutions, including the Big Four, allow you to transfer money from a credit card to a bank account. There’s no specific credit card type that’s designed for cash withdrawals or transfers – but the low-interest products are the better cards to use, simply because the interest starts to accrue immediately. Interest is charged on a daily basis for cash advances. Banks are warning consumers to avoid cash advances, due to the costs and risks involved.

Common restrictions to know

Check the specifications of your bank and how they treat cash advances. There could be limitations depending on your credit card, credit limit, daily card limit and current debt. Banks can block cash advances on specific cards, such as the CommBank Neo products or the Westpac Lite Card.

» MORE: Can you withdraw cash from a credit card?

How to transfer funds from a credit card to a bank account

Mobile or online banking steps:

  1. Sign into your online banking (app or desktop).
  2. Select Transfer.
  3. Choose the credit card for Pay From, and the bank account for Pay To.
  4. Enter the amount and confirm.
  5. Confirm you approve the cash advance.
  6. Wait a few minutes and check the bank account.

On the phone steps:

  1. Call your bank and inform them you’d like to process a cash advance.
  2. Confirm the amount, the credit card and bank account.
  3. Follow the representative’s prompts.
  4. Allow for up to three business days to receive the funds.

If it’s urgent, do the transfer online instead of over the phone.

What to consider before you make a transfer

How much can be transferred?

The daily cash limit on your card and available credit determines how much can be transferred or withdrawn.

How long will it take to transfer?

The money should transfer within minutes of processing the transaction.

What are the costs?

It depends on who you bank with but expect to pay approximately 3% of the transaction amount. Your interest rate and how long you take to pay it off will determine the interest costs. You can’t avoid the cash advance fee, but you can control the interest by paying it back in full as soon as possible.

» MORE: Credit card fees to know

Alternative solutions

If it’s not possible to transfer money from a credit card to a bank account, you do have other options.

If the reason you need the money is to pay your rent or a bill, talk to the company you owe money. See if you can either get an extension or use your credit card the regular way to avoid the cash advance. Alternatively, you could dip into your savings and pay it back. Or borrow money from a family member or friend.

You also could consider a low-interest personal loan or some kind of longer-term support from your bank. Avoid Buy Now, Pay Later (BNPL) or short-term lenders, as they charge exorbitant interest in exchange for the convenience of fast cash.

With all matters of personal finance, it pays to make decisions with a long-term outlook.

Frequently asked questions about transferring money from a credit card to a bank account

Can I transfer money from a credit card to a debit card?

Yes, you can send money to your debit card account — this is a cash advance. The cash advance fee is around 3% of the transaction, which starts to accrue on the same day. There is no interest-free period. If you withdraw or transfer $1,000 from your credit card, you’ll pay the $30 fee, plus interest that accrues until you pay it off. The interest rate is usually higher than the standard variable purchase rate on the credit card.

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Can I Transfer Money From A Credit Card To A Bank Account?  - NerdWallet Australia (2024)


Can I transfer money from a credit card to a bank account? ›

It is possible to use a credit card to transfer money into a bank account by using a cash advance or balance transfer check, but we can't recommend it. Cash advances are risky because of the high interest rates and costly one-time fees. Balance transfers can lead to more debt if they're not handled correctly.

How to transfer money from credit card to bank account in Australia? ›

Online and mobile banking
  1. Log in to your credit card account.
  2. Select the "Transfer" option.
  3. Enter the amount you want to transfer.
  4. Enter the bank account number, BSB and any other details listed on the form.
  5. Follow the prompts to complete the transaction.

Can I use my credit card to transfer money to someone? ›

Enter the recipient's bank account information. Use your credit card to make a purchase. A confirmation and tracking number, sometimes referred to as a money transfer control number (MTCN) will be sent to you through email.

How do I send myself money from my credit card? ›

Use it like a debit card. Withdraw cash from an ATM using your credit card, and then deposit it into your bank account. Have your bank deposit a cash advance directly into your account. This might be an option if you have a credit card with the same bank where you have a bank account.

Which app is best for transfer money from credit card to bank account? ›

MobiKwik app is the safest of all the platforms to transfer your money from credit card to bank account with bare minimum charges.Do a quick online money transfer with MobiKwik, just download the app or log in to the website and follow the given steps.

Can you bank transfer from a credit card to a debit card? ›

There is usually a fee to perform a transfer between a credit card and a debit card. This will depend on your provider but is usually somewhere between 1% and 5%. However, you need also to be aware of what interest rate you will be paying on your credit card on the funds you have transferred.

How do I get cash from my credit card Australia? ›

You may be able to withdraw cash from your credit card at an ATM in Australia – this is called a cash advance. However, the interest you pay on that cash is higher than if you were to use your credit card to make a purchase. Cash advance interest will accrue daily from the day the money is withdrawn.

How to transfer money from credit card to bank account internationally? ›

To bank wire transfer from your credit card online, these are the steps to follow:
  1. Log into your online banking service.
  2. Look for the wire transfer option and enter the payment amount and currency.
  3. Add your recipient's banking information.
  4. Choose the option to pay with a credit card.
Jan 11, 2023

How to transfer money with only card number and CVV? ›

To transfer money with only a card number and CVV, you can use a money transfer service such as Western Union or MoneyGram. These services allow you to send money to anyone in the world, even if they don't have a bank account.

How to transfer money from credit card to cash app? ›

Once your credit card is linked to your Cash App account, you can transfer money from it to your Cash App balance by following these steps:
  1. Tap the "Money" tab in the Cash App app.
  2. Tap "Add Cash".
  3. Enter the amount of money you want to transfer from your credit card.
  4. Select your credit card as the payment method.
Nov 7, 2023

Can I deposit a credit card check into my checking account? ›

Although you can deposit a balance transfer check directly into your checking account, your credit card issuer will likely treat the check like a cash advance.

Can you zelle with a credit card? ›

Zelle also doesn't allow for credit card payments. Venmo, Cash App and PayPal, on the other hand, let you link your credit card. Note, however, that if you use a credit card as your payment method with any of these services, you'll be charged a processing fee.

Can I Venmo myself from a credit card? ›

No, you cannot Venmo yourself directly. Venmo does not allow users to send money to themselves. This is because Venmo is a peer-to-peer payment platform, designed for sending and receiving money from other people.

How to withdraw cash from a credit card without fees? ›

While you will not be able to withdraw cash from a cash machine on any credit card fee-free, there are credit cards that allow you to access cash or spend on your card without paying interest. Here's how they work: 0% money transfer cards: Make a payment from your credit card as cash straight into your bank account.

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