Can you pay a credit card from another bank?

Paying off your credit card on time helps to avoid extra interest charges. But what happens if you don’t have enough money in your linked transaction account to cover the costs? What external payment options are available?

Generally, it’s not possible to directly make a credit card repayment with a credit card or debit card. Most Australian banks and credit issuers offer customers a variety of methods to make credit card repayments internally: 

• Internet banking
• Telephone banking
• Branch banking
• App banking

However, some credit providers allow cardholders to pay their statements from another bank via payment services such as BPAY, direct debit and Australia Post's Post Billpay. Check your statement to see what options are available.

BPAY

One of the most widely used bill payment services, enabling users to transfer funds electronically from a bank account to a biller. You can use BPAY to pay your bills to any Australian institution, as long as they accept BPAY.

You can search BPAY’s digital directory to see which banks and financial institutions accept BPAY payments.

It’s important to note that many banks and financial institutions won’t accept BPAY payments from a credit card. You’ll typically only be able to make payments from cheque, savings or debit card transaction accounts.

If you find a credit card provider that will allow you to make BPAY transactions to pay off another bank’s credit card bill, you’ll want to check whether this will be charged as a purchase or a cash advance.

A cash advance usually attracts a fee and potentially higher interest rates. You can check the terms and conditions of your credit card agreement or contact your card provider to find out whether or not you’ll incur any fees and charges.

Additionally, if the transaction is considered a cash advance you may miss out on any rewards or bonuses ordinarily earned through credit card purchases. This is because a cash advance is not considered a purchase.

BPAY is a free service but some billers may charge you to process BPAY payments. You can check with your biller to determine what, if any, costs you may be subject to for these types of payments.

Direct debit 

A direct debit is a pre-set transfer of funds from your bank account to the account of another person or organisation.

You can set up direct debit transactions to automatically pay your monthly credit card bill but, as is the case with BPAY, you may find that some banks won’t allow you to make direct debit payments from a credit card.

Check with your bank or financial institution to learn about any charges associated with direct debit transactions.

Post Billpay

This fee-free service provided by Australia Post allows you to conveniently and securely pay bills, either online or in-person. Billers who accept Post Billpay payments will have the Post Billpay logo displayed on their bill. All you need is the Billpay code and reference number from your bill as well as your credit card, debit card or PayPal account details.

Payments are processed overnight or, if made after 5:00pm AEST, the following business day. For example, if your bill payment is due on 22 July, you must submit your payment before 5:00pm AET on 22 July in order to pay on time.

Post Billpay sets a $10,000 limit for credit card, debit card and PayPal payments. Individual billers can also set their own minimum and maximum payment amounts. Post Billpay is a free service but your financial institution may charge you for electronic transactions, and some billers may charge a processing fee for payments made via Post Billpay.

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