Credit Card Bill Payment Through IMPS and NEFT

Paying your credit card bill on time is of utmost importance, and with online banking, there are several quick and convenient payment methods available. Two popular ways of paying your credit card bills are Immediate Payment Service (IMPS) and National Electronic Funds Transfer (NEFT). Both allow you to transfer money directly from your bank account to your credit card issuer’s account. However, they can differ in terms of processing time, fees, and accessibility. Understand the differences between the two and how you can use them to pay your credit card bill.

IMPS stands for Immediate Payment Service and is a real-time payment system that lets you transfer your money from one bank account to another instantly. With this facility, you can transfer funds at any time of the day, even on weekends and holidays. You can use this facility with mobile banking, internet banking, and SMS services. IMPS is one of the popular choices for paying credit card bills because of its speed and convenience.

IMPS offers numerous benefits, but there are also a few drawbacks to consider. Here are the merits and demerits of credit card bill payment through IMPS:

Merits of Using IMPS

Here are the key advantages of using IMPS for credit card bill payments, offering speed, convenience, and security:

 

Instant Payment Processing

IMPS processes payments in real time, which means that your payment is made immediately. This is ideal for making urgent payments before the due date.

 

24/7 Availability

IMPS is available around the clock, including weekends and holidays. This level of flexibility lets you pay your credit card bill at any time.

 

Convenient Access Through Multiple Channels

You can access IMPS via mobile banking, internet banking, and even SMS. This makes it easy to make payments from anywhere.

 

No Need for Physical Visits

IMPS does not require you to visit a bank branch or ATM to make payments. The entire process can be done online, which can help save time and effort.

 

Enhanced Security

Any transaction done via IMPS is secured by the Reserve Bank of India (RBI). This means that your financial information stays protected when making transactions.

Demerits of Using IMPS

Here are the limitations of using IMPS for credit card bill payments:

 

Transaction Charges May Apply

Some banks may charge transaction fees for IMPS transfers, which makes it costlier than alternatives like NEFT or UPI. These charges could add to your costs if you frequently use IMPS for bill payments.

 

Transaction Limits

Most banks have a set daily limit for IMPS transactions, which may not be sufficient for high-value payments. If your credit card bill exceeds the permitted IMPS amount, you may need to either make multiple transactions or use another method.

 

Possibility of Delayed Credit

IMPS is known for processing payments instantly; however, the crediting of funds to your credit card account may take time. This depends on the recipient bank’s processing speed and could incur late fees if the payment is not accounted for.

 

Requires Correct Details

IMPS transactions require accurate details such as the Mobile Money Identifier (MMID), account number, and IFSC code. An error in these details could result in failed transactions or funds being transferred to the wrong account.

 

No Auto-payment Option

IMPS does not have an auto-debit feature, which means that you will need to initiate each transaction manually. This increases the risk of missing due dates if you forget to make payments on time.

IMPS enables you to transfer funds instantly between different bank accounts. Here are the steps you can follow to pay your credit card bill with IMPS:

1. Log in to your bank’s mobile app or internet banking platform

2. Select IMPS as your payment option

3. Input your credit card number and the amount you wish to pay

4. Enter the IFSC code of your credit card issuer, which can be found on your credit card statement

5. Confirm and submit your payment

Once you confirm the payment, the transaction is processed instantly. You will receive a confirmation notification, ensuring your payment is successfully completed.

IMPS can process credit card bill payments instantly. It has the capability of deducting the amount from your bank account and transferring it to the credit card issuer. Crediting the amount may take a few minutes to even 24 hours, depending on the recipient bank’s processing. Any payments made outside banking hours or non-working days could take even longer. You can avoid late payment fees by paying at least a day before the due date and verify the transaction within your credit card statement.

IMPS transactions have certain limits and charges that are applicable. However, these vary across banks but must comply with the guidelines laid down by the Reserve Bank of India (RBI). While RBI allows banks to decide their terms, here are key aspects that must be considered:

Transaction Limits

IMPS transfers range from ₹1 Lakh to ₹5 Lakhs per transaction, though some banks may impose a lower daily limit based on the account type.

Transaction Fees

Banks may charge fees ranging from ₹2.50 to ₹25 per transaction, depending on the transfer amount.

GST Charges

An IMPS transaction will incur a Goods and Services Tax (GST) as per government regulations.

Fee Exemptions

Some banks may waive IMPS transaction fees for premium account holders or digital banking customers.

Processing Policies

While IMPS transactions are known to be instant, the actual crediting time may vary based on a bank's internal processing policy.

National Electronic Funds Transfer (NEFT) is a secure system regulated by RBI that facilitates the transfer of funds between bank accounts in India. Unlike IMPS, which is capable of processing payments instantly, NEFT works in half-hourly batches. This allows transfers to be done in a structured manner within the same day during banking hours.

NEFT is a popular method for paying credit card bills, offering several benefits but also has some limitations. Here is what you need to consider:

Merits of Using NEFT

Here are the key advantages of using NEFT for credit card bill payments:

 

Wide Accessibility

NEFT is available across different banks and can be accessed via internet banking, mobile banking, or by visiting a bank branch. This provides flexibility when making payments and ensures a convenient transaction process.

 

No Minimum Transaction Limit

There is no minimum amount required for NEFT transactions, allowing you to pay even small credit card bills without any restrictions. This makes it suitable for users who prefer transferring lower amounts without limitations.

 

Cost-effective

Many banks offer NEFT services at minimal or no charges, especially for online transactions. This makes it an economical option compared to other payment methods that may involve higher fees.

 

Security

As a system regulated by RBI, NEFT ensures secure and reliable transactions. It follows strict banking protocols, safeguarding your financial information from fraud or unauthorised access.

Demerits of Using NEFT

Here are the key limitations of using NEFT for credit card bill payments:

 

Non-instantaneous Transfers

NEFT transactions are processed in half-hourly batches, which means payments are not instant. Depending on the bank's processing time, it may take a few hours for the amount to reflect in the beneficiary's account.

 

Bank Operational Hours

Although NEFT is available 24/7, the actual crediting of funds depends on the operational hours of the beneficiary's bank. If the transaction is initiated outside working hours, there may be a delay in processing.

 

Possible Charges for Branch Transactions

While online NEFT transactions are usually free, some banks may impose nominal charges for transactions conducted at physical branches. These fees vary between banks and may increase the overall cost of making payments.

 

No Immediate Confirmation

NEFT does not provide instant confirmation of transaction status. This could be a concern for time-sensitive payments where immediate verification is required.

NEFT lets you securely transfer funds from your bank account to your credit card issuer’s account. Here are the steps you can follow to pay your credit card bill using NEFT:

1. Log in to your bank’s mobile banking app or internet banking portal

2. Choose NEFT as your preferred method of payment

3. Add your credit card provider as a beneficiary by entering your card number in place of the account number

4. Enter your credit card issuer’s IFSC code, which you can find on your credit card statement or the issuer’s website

5. Input the amount you wish to pay and verify the transaction details

6. Submit your payment request

NEFT transactions are processed in half-hourly batches which means that payments are not instant but are typically settled within a few hours. If the transaction is initiated during banking hours, the amount is usually reflected in the credit card account on the same day. However, payments made outside working hours or on non-banking days may take longer to be credited.

While NEFT is available 24/7, the processing time depends on the operational hours of the beneficiary’s bank. To avoid any late fees, it is advisable to pay your credit card bill at least a day before the due date and check your account for confirmation.

NEFT transactions are subject to certain limits and charges and this may vary across banks but must comply with RBI guidelines. While RBI allows banks to set their own policies, here are the key aspects to consider:

Transaction Limits

NEFT does not have a minimum transaction limit which allows users to transfer even small amounts. The upper limit depends on individual bank policies, with some banks setting a daily cap based on account type.

Transaction Fees

Banks may charge nominal fees for NEFT transactions, particularly for payments made through physical branches. However, online NEFT transfers are often free or come with minimal charges.

GST Charges

NEFT transactions are subject to Goods and Services Tax (GST) as per government regulations. This applies to any transaction fees imposed by the bank.

Fee Exemptions

Some banks waive NEFT charges for premium account holders or digital banking customers. This makes it a cost-effective option for regular users.

Processing Policies

While NEFT operates 24/7, transactions are processed in half-hourly batches, meaning fund transfers are not instant. The actual crediting time depends on the bank’s internal processing and operational hours.