Freecharge Credit Card to Bank Transfer Charges: What You Need to Know

Payment Wallets
1

What are the charges for transferring money from a credit card to a bank account using Freecharge?

2

The transfer of money between a credit card and a bank account does not receive a direct rap from Freecharge through its wallet. Nonetheless, other users will resort to indirect ways such as depositing a certain amount of money on Freecharge wallet through credit card and transferring that amount to a bank account connected to Freecharge. This is mostly discouraged and it may have other costs, restrictions, or even it can block the transaction on terms of using the app.

This is how the possible charges and considerations may look like:

  1. Wallet Loading Fees Using Credit Card:
    When loading the wallet through credit card, Freecharge can charge minimum 2%3% convenience fee, more so when the amount of money transferred is big.

  2. Restrictions in bank transfer:
    Freecharge wallet balance which was loaded through credit card cannot be transferred to the bank directly. Typically, wallet-to-bank transfer can be made with the money loaded through UPI or net banking.

  3. Third-Party Apps:
    In case one needs to transfer/route credit card money to a bank account via Freecharge using a third party application or service provider, there might be platform charges and service fee, typically 2.5 to 3.5 percent, depending on the service provider.

  4. KYC Requirement:
    Full KYC is required whenever transferring between any wallet and the bank, irrespective of who transfers the funds.

  5. Policy Restrictions and Compliance Issues:
    Converting credit into cash using wallets can be considered as breach of Freecharge terms and mark it as misuse, which will lead to the withdrawal of the wallet service.

3

Yes, you can transfer money from your Freecharge credit card to a bank account, but not directly like UPI or wallet transfer. You’ll need to use features like the rent payment or education fee options in the app. These allow you to send money to a bank account, but it’s routed as a service payment.

This method can help you avoid cash advance charges, but you’ll still be charged a platform fee, usually around 1.5% to 2%, plus GST. It’s cheaper than a direct cash advance, which comes with higher fees and no interest-free period.

So it’s possible, but only makes sense if you’re using these specific categories and you’re okay with the small service fee. Just don’t withdraw cash or try direct wallet-to-bank methods—those get expensive fast.