According to official sources, there were approximately 57.4 million active credit cards in circulation in April 2020. As more individuals switched to online-based transactions, the number of credit card transactions also witnessed an increase.
More than 125 million POS and 323 thousand ATM transactions were carried out in India using credit cards in June 2020.
In June 2020, credit card transactions increased to 69% in comparison to 52% in May.
Though both the number of credit card users and the volume of transactions increased in 2020, some individuals still struggle to use this payment card to its full utility. For instance, a large segment of users do not feel confident about online credit card payment.
To that end, individuals must familiarise themselves with online and offline ways of paying credit card bills to ensure timely and hassle-free payments.
Ways to pay credit card bills
A few ways in which individuals can use their credit card to pay bills are mentioned below.
Process of paying credit card bills online
In a broader sense, cardholders can carry out credit card bill payment online through these ways –
Auto debit facility: This process automates the credit card bill payment method. Individuals only need to link their card with their savings account and enable ‘Auto debit’ option for the same.
Priti has opted for the auto debit facility. On the next due date, say, 30th January, the bill amount will be debited automatically from her savings account. This will eliminate her need to keep track of the payment due date while ensuring she doesn’t miss out on payments.
Payment gateway: One can pay a credit card bill through reliable payment gateways like BillDesk. Cardholders must open an account by using basic details to use this medium.
Mobile wallets/UPI: Individuals can make their online credit card payments through mobile wallets or UPI apps like MobiKwik. To use this method, individuals need to install the particular app, log into their account, and add card details to move forward with the payment.
NEFT: Generally, online credit card payment. through this mode takes at least 30 minutes to a maximum of 24 hours to process. Cardholders need to add their card as the ‘biller’ and add their card details. Once card details are shared, payment can be initiated.
As more individuals are switching to the internet-based payment mode, risks related to the medium are also increasing. In FY20, there were more than 52006 collective cases of credit cards, internet banking, and debit card scams in India.
Thus, individuals must be alert when it comes to using payment cards and paying bills online. It is wise to have a card protection plan like the Wallet Care policy in place offered by Bajaj Finserv under Pocket Insurance & Subscriptions.
Such an insurance policy allows individuals to get their credit cards and SIM card blocked with a single call, in case of loss or theft. It also extends a comprehensive fraud protection cover to account for financial losses resulting from online scams related to credit and debit card.
Steps of paying credit card bills offline
One can easily carry out credit card payment offline through –
Bank ATM: This method ensures instant payment. However, to use this facility one needs to use a debit card, enter its PIN, and choose the option – online credit card payment.
However, such a method exposes cardholders to the ever-growing risks of skimming. One must scan the ATM card slot and keypad carefully before payment to check whether they are compromised or not. They may also consider getting a Cyber Security Cover to receive financial protection against liabilities occurring due to unauthorised credit card transactions.
Cheque or demand draft: It takes 3 to 21 days to process the payment via this method. The least amount of time is taken to process the bill if the credit card and the savings account are from the same financial institution.
Customer care: A customer executive guides cardholders through the payment process in this case. Individuals must note that all financial institutions do not provide this service. Also, one shall bear in mind that legitimate financial institutions never call their customers to seek credit card details or initiate credit card payments. If they receive an unsolicited call from an unknown number at any time, they should refrain from disclosing card details at all cost.
Over-the-counter payment: Cardholders may decide to pay their bills by visiting the nearest branch of their credit card provider.
Nevertheless, individuals should raise the alarm promptly when they identify unauthorised transactions on their credit cards. It’s a healthy habit to closely track transactions and check card statements minutely. Furthermore, one may consider availing an identity assure insurance policy to be prepared for such financial liabilities.
Based on convenience, cardholders can opt for offline or online credit card payment. options. Irrespective of the method chosen, individuals should ensure the process is streamlined to avoid missing payments or hassles like late payment fees.