Sponsored: Easy ways to make Credit Card Payments

Sponsored: Easy ways to make Credit Card Payments

Sponsored: Easy ways to make Credit Card Payments

Not too long ago (and at present for some), the credit card statement would arrive in the mail, and a cheque would have to be deposited to pay it off. This left people hoping that the cheque would clear on time. Missing a payment meant penalties, but nowadays it could also impact your credit score.

Up until the 2000s, credit scores weren’t in existence in India, and didn’t gain importance for many years. Things have changed since then, and credit card payments have been simplified to the max! Let’s take a look at some of the most convenient ways to pay off your credit card bill with minimum effort.

Banks usually offer a variety of payment modes for customers to make payments. Some of the usual instruments you can use to pay your credit card bills are cash, cheques, demand drafts, debit cards, and other bank’s credit cards. In recent years, banks have made payments possible online, at ATMs, and at bank branches, too.

Online Credit Card Bill Payment
The Internet has simplified the way we bank dramatically. Almost all banks across the nation offer online banking facilities, and signing up is easy. Smaller banks that do not have these facilities are jumping on the bandwagon to provide the same convenience to their customers. When you make payments online, you can use the following methods:

Debit Cards - This can be done through an online banking account. Certain banks provide an option for customers to choose their debit card type, enter the relevant information such as name, card number and expiry date. The transaction is then processed through a payment gateway that requires an OTP or IPIN. The payment is processed and reflected immediately, and the funds will be debited from the savings account or current account.

Online Banking - Online banking has become the main banking service used by many across the globe. It requires a simple activation with a username and password. The online account contains all the information about the bank account and also gives the customer access to a number of services and products offered by the bank. Customers can track their credits and debits, view their statements, check outstanding amounts and payment due dates. To make a payment, simply select the credit card and click on “Pay credit card bill now”. Choose a bank account to be used, enter the amount you wish to pay and make the payment. Usually, the payment is processed quickly and reflects immediately or on the same day.

NEFT/IMPS - If you need to make a payment using another online banking account, different from the bank of the credit card, you can use the Immediate Payment Service (IMPS) or National Electronic Funds Transfer (NEFT), if the credit card provider accepts these modes. You cannot use RTGS to make a credit card payment. To use this mode, you need to get the beneficiary name, account number, bank, branch and IFSC code. While NEFT can take upto 1 working day, IMPS is processed instantly.

Standing Instructions - You can set standing instructions online with your bank to automatically debit the credit card payment amount from your savings account. You can choose to pay the bill in full, a set amount or pay just the minimum amount due.

Bank Browser and Mobile apps - Banks have special applications on browsers as well as their own mobile banking app which provide the convenience of paying your bill on the go. Simply login to the app, select credit cards, follow the steps of the respective bank, and make the payment.

Other portals - Banks partner with third-party companies that allow customers to pay their credit card bills through their portals. Visa Money Transfer and Billdesk are examples of such portals. Payments are usually processed within 2 working days.

Offline Credit Card Payment
For those who are not computer savvy, there are still easy methods to pay your credit card bill offline. Some of the major methods of offline payments are mentioned below.

Debit cards - ATMs are equipped to accept credit card payments in different forms. Using your debit card, you can clear your credit card bill by simply choosing the option of Bill Payment. The ATM will give guide you in making the payment. Once processed, the money will be debited from your savings or current account.

Cheques and Demand Drafts - Cheques and DDs are the oldest form of credit card payments, apart from cash. You can write out a cheque in favour of your credit card number. This can either be sent by post, or deposited in a drop box or a cheque payment machine that are available at ATMs or bank branches.

Over the counter - Though this is a simple method, it requires you to visit the bank, probably stand in line and wait your turn. Paying the bill over the counter usually attracts a fee, but you can make the payment in cash and the payment will be reflected almost immediately.

Electronic Clearance Service (ECS) - Standing instructions are the easy way out, you never have to look at your bill. But it is highly advisable to always take a look at your statement to make sure you haven’t been wrongly charged for anything! Simply set standing instructions with your bank or any other bank to make payment towards your credit card on a particular date. You can choose to pay the minimum amount due, the total bill, or any other set amount of your choice.

SMS - Some banks offer their customers an extremely convenient service of SMS banking. Customers need to send an SMS to a designated number. The SMS should contain the whole or part of the savings or current account number and the credit card number. Usually, a ceiling limit is set on the amount you can pay using this service.

The boon of online credit card payments

The best part about online payments is that they can be done from the comfort of your own home or office. You can also make payments through your mobile or computer from anywhere around the world. The convenience is quite extraordinary compared to just a few years ago. It saves a lot of time which you would’ve otherwise spent on visiting the bank or ATM.

Using these facilities ensures security because you require an OTP or IPIN to verify the transaction and authenticate your identity. Customers can be more at peace knowing their transactions are more secure and money is not lost in the dropbox, mail or anywhere else. When you use online facilities, everything is recorded electronically and is available as and when you need. It becomes easier to categorize and sort all your statements and receipts making tax assessments and budgeting much easier.

Using standing instructions, you can opt to pay the minimum due, the full amount or any amount that you desire when you pay your credit card bill online. You can change your choice with each bill.

Lastly, online payments leaves less of a carbon footprint as it saves paper, envelopes, cheques, receipts and stamps. Receiving all your statements and receipts electronically allows you to set automatic filters and rules to categorise it as per your preference. This means less clutter at home, and less to throw out in the garbage!

Tips for online credit card payments

When using online methods, ensure that the information you provide is correct. Double-check the credit card number, bank account number and other details. Also, be aware of the accurate amount that needs to be paid towards the credit card. Information related to NEFT, IMPS and so on will be available on the bank’s website, or you could contact the customer care service.

Online methods can take 1 working day upto 5 working days. Be sure to check the time it would take for your payment to be processed when you are paying your credit card bills. For IMPS, the turnaround time is immediate, for NEFT, it usually takes up to 1 working day depending on the time of the transaction, bank holidays and weekends. Using the official bank’s portal will ensure that the payment is received by the bank immediately.

You should always… always… check your credit card statement before you make any payments towards your bill. The statement can be checked online, or will be sent via email or through post. If you find fraudulent charges, you need to alert your bank immediately.

With the advancement in technology, we can expect even more convenient methods of credit card payments in the future.