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Funds Transfer from a Credit Card to a Bank Account - All You Need to Know

Funds Transfer from a Credit Card to a Bank Account - All You Need to Know

26 Sep 2022


Do you wonder how to transfer money to a bank account from a credit card? Or maybe you are uncertain about how to use this medium to transfer funds into the bank account of a family member or a friend. This piece will guide you through the entire process. The need to transfer funds into a bank account increases when you live in a foreign land as an expatriate.

People from developing countries such as Bangladesh mostly travel to developed countries such as the UK, Europe, Canada, Australia, Switzerland, etc., to find better work opportunities, as they cannot find decent jobs in their native countries. Since the developed countries have robust economies, they easily accommodate the job-seeking expatriates into their fold. These expatriates earn better and send money to Bangladesh to support their families back home financially.

Let’s first take a brief look at the economy of Bangladesh.

Bangladeshi Economy – A Bird's Eye View

  • It is the 42nd largest economy worldwide, with a nominal Gross Domestic Product (GDP) of $397 billion.
  • Bangladeshi economy is the 30th largest, with a Purchasing Power Parity (PPP) of $1.11 trillion.
  • Its GDP growth rate is estimated to be 6.4% in 2022
  • Its nominal GDP Per Capita income is $2,365; whereas its PPP Per Capita income is $6,675
  • The inflation rate in Bangladesh is 5.5%
  • The overall unemployment rate in Bangladesh is 4.2%

With a rapidly increasing population, it becomes difficult for the government of Bangladesh to cater to the financial and employment needs of the people despite these somewhat robust economic indicators.

Let’s now take a look at the process of transferring money to a bank account from a credit card.

What Is A Credit Card? 

It is an electronic card your financial institutions (primarily banks) provide you that enables you to borrow money from your banks to make payments for products and services that accept payments through credit cards. It is primarily used by those who agree to borrow money from the banks to make payments. These payments are returned with interests and any additional charges mutually agreed upon by the user and the institution.

Benefits Of Using A Credit Card

  • It enables you to use money at a will that you do not own, but the bank does
  • It gives you time to return the money. But the deadlines must be met strictly, and the agreed-upon interest must also be paid with the principal borrowed amount.
  • A credit card allows you to use the credit line of a bank
  • It gives better protection against online frauds and scams
  • With the intelligent and appropriate usage of credit cards, you can get rewards and benefits such as reward points and discounts
     

Can You Transfer Funds To A Bank Account Through A Credit Card?

The straight answer is yes. But the good news is that you can do so in several ways if you are a Bangladeshi expatriate residing in another country and wish to send money to Bangladesh online using any of the methods explained below.

Various Methods Available For Funds Transfer To Bangladesh Using A Credit Card

The features and fee structures vary depending on your exact needs in these methods. But, it is wise to look at all the available options and procedures before deciding.
 

Transfer Through Cash Advance

Many credit cards give this option to users. It can incur an additional cost and immediate interest charges. These costs make it a costly choice, but it is fit for emergencies and convenient. Depending on your institution, you can withdraw the amount from your ATM, get a cheque issued, or have the requested amount transferred into your bank account.
 

Transfer Through The P2p Payment Method

It is a method you can choose if you need to send money to a friend. It is called a Person to Person or Peer to Peer transfer method. Many service providers facilitate this P2P payment method, such as Western Union, ACE Money Transfer, MoneyGram, etc.

You will be required to create an online account with your chosen service provider and make the payment through your credit card. Bear in mind that the fee will apply from the service provider, and the card may also charge some amount as a cash advance fee.
 

Transfer With Online Money Transfer Companies

Online money transfer services are also a good option for making a payment to a bank account using a credit card. Many companies have different ways of operating and providing services. It implies that their features, reach, accessibility and fee structures vary hugely. One of the best services is discussed briefly below. 
 

ACE Money Transfer - The Most Trusted Service for Money Transfers to Bangladesh

An international money transfer using ACE Money Transfer is an excellent option for transferring money to a bank account internationally using your credit card. It is easy to set up and is available on both Android and iOS operating systems. The best part of using this service is that the fee and service charges are the bare minimum against many other providers.
 

Millions of customers worldwide trust its services to send money abroad to their families and friends. ACE Money Transfer offers one of the most phenomenal services providing the most secure transfers, the best exchange rates, and the lowest transfer fees. Its payout partner network spans over 375K+ locations worldwide. Customers have the facility to make online money transfers using its website and mobile app from 28 sending to more than 100 receiving countries, including Bangladesh. Whether you use ACE’s mobile app or website portal, both are equally smooth and convenient to use for an instant, fast, and safe transfer.
 

Transfer Through A Cash App

If you already have a cash app, you can simply link it with your credit card to make payments for the products and services. All you need is the information of the recipient for the cash app to work and transfer funds into their bank accounts. The only limitation of cash apps is that they operate in a few countries, which is mainly useless for international money transfers.

The details here shed light on the fact that you can transfer money into a bank account through your credit card. This makes an online money transfer to Bangladesh convenient for expatriates. But, keep a close eye on the fee, interest you will be charged and the transaction’s overall impact on your credit card. Choose wisely to get ultimate peace of mind and help support your family back home timely and effectively.


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