A credit card is a thin rectangular piece of plastic or metal card issued by financial institutions, which lets you borrow funds from a pre-approved limit to pay for your purchases.
The limit is decided by the institution issuing the card based on your credit score and history. Generally, the higher the score and the better the history, the higher is the limit.
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The key difference between a credit card and a debit card is that when you swipe a debit card, the money gets deducted from your bank account; whereas, in the case of a credit card, the money is taken from your pre-approved limit.
Credit Card Bill Payment Online & Offline
How do you make credit card payments? Is it online or offline? If online, what type of internet banking payment methods do you use? A majority of credit card users prefer making credit card bill payments through internet banking today.
Remitting credit card bills through internet banking is preferred over other means of payments in several ways. It is simple and convenient. Payments through internet banking can be through mobile banking, auto-debit, electronic bill payments, debit cards, national automated clearing house, RTGS, IMPS, and NEFT. Each of these online payment options has its own advantages. Let’s understand how IMPS and NEFT work.
What is IMPS?
IMPS stands for Immediate Payment Service (IMP). It is an internet banking payment system that instantly transfers funds among partner banks electronically in the country. The service can be accessible 24/7 is offered even on bank holidays, unlike other options. Funds are electronically transmitted amid member banking institutions via mobiles.
In India, the National Payment Corporation of India (NPCI) manages IMPS, which has designed based on the prevalent National Financial Switch network. Funds can be transmitted and received through the system of IMPS utilizing a Mobile Money Identifier and authorized mobile numbers.
Credit Card Bill Payment Through IMPS
Credit card bill payment through IMPS is one of the most commonly used internet banking payment methods. The system fosters immediate fund transfer and can be accessed through several modes, including mobiles, Automated Teller Machines (ATMs), online banking or internet banking, bank branches, and SMS. It assures the 100% safety of credit card payments and is also economical. To be a partner banker of this system, banking institutions should have obtained a legal banking license from the Central Bank of India, which is the Reserve Bank of India.
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The participants of the IMPS system include payers or remitters, bankers, National Financial Switch and beneficiaries or receivers. Payers are the parties making payments. In our context, they are credit cardholders. Receivers or beneficiaries are the parties to whom funds are transmitted. In our case, they are billers. Banks are the financial intermediaries that connect credit card bill payers to billers.
Credit Card Bill Payment Through IMPS- How Does The System Work?
Credit card payments are also called merchant payments. Transactions can be clustered into two categories, which include merchant-initiated transactions; also called PULL or M2P, and customer-initiated transactions also called as PUSH or P2M. In the case of P2M, transactions shall be initiated by credit card bill payers via member banking institutions. In the case of M2P, transactions are initiated via merchant apps like mobile apps, the website of merchants, WAP sites, etc. Such type of transactions requires credit card bill payers to provide the registered contact number, OPT and MMID.
How To Pay Credit Card Bills Through IMPS
- The first step is to download the mobile application of your banking institution. For instance, you have to download the mobile application of ICICI Bank if you hold a bank account with this banking entity.
- Once you download the mobile application, you have to login to mobile banking using credentials.
- Click the ‘Bank Account’ button. You shall be provided with a link for the IMPS payment option.
- Click the ‘IMPS’ button and choose the ‘Merchant Payment’ button.
- Furnish the necessary financial details such as MMID, the contact number of billers, and your bank account from which funds are transferred, the billing amount, and your credit card number.
- Finally, hit the ‘confirm’ button. The transaction is successful!
Why Make Credit Card Payments Through IMPS
- Payments can be made instantly, which means your biller’s accounts are immediately credited.
- You can access this facility anytime anywhere.
- The system is not expensive in terms of payment charges like mentioned earlier.
- The system is faster in terms of the processing of payments and is reliable as well.
- The IMPS system is convenient and customer-friendly.
information sources:- www.bajajfinserv.in
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