Can You Pay A Credit Card Bill With A Debit Card?

Paying off credit card debt is an important part of maintaining good financial health. With high interest rates, credit card balances can quickly spiral out of control if you only make minimum payments each month. Finding ways to pay off your balance faster can save you money on interest and help boost your credit score. But can you use a debit card to pay a credit card bill? Let’s take a look.

How Credit Cards Work

Before we dive into whether you can pay a credit card with a debit card, it helps to understand how credit cards work

When you make a purchase with a credit card, you are essentially borrowing money from the credit card company. The credit card network (Visa, Mastercard, American Express, etc.) acts as a middleman between you, the merchant, and the issuing bank.

The issuing bank provides you with a line of credit, which allows you to spend a certain amount each month You can carry over a balance from month to month, accruing interest along the way Credit cards give you a lot more flexibility in spending compared to debit cards or cash.

Paying Your Credit Card Bill Each Month

When your credit card statement closes each month, your bill comes due. This includes any new charges made that period plus any carried over balance. You typically have around 21 days to make at least the minimum payment before you are charged a late fee.

There are a few ways to pay a credit card bill each month:

• Automatic payments – Many credit card companies allow you to set up automatic payments from a bank account. On the due date each month, they will pull the amount you designate from your checking or savings account.

• Online payments – You can log in to your credit card account and submit a one-time or recurring payment. This also generally pulls from a linked bank account.

• Mail payments – The old school way is to mail a physical check or money order to the address listed on your statement. This takes longer to process.

• Over the phone – Some credit card issuers allow you to make payments over the phone.

• In person – You may be able to stop by a local branch and make a payment in cash.

Can You Use a Debit Card to Pay Credit Card Bills?

Now let’s get to the main question – can you use a debit card to pay your credit card balance? The short answer is maybe, but with some major caveats.

Credit card companies and banks prefer that you link a bank account rather than a debit card to make payments. They want to pull funds directly from your checking or savings account. This means the money is guaranteed to be there, as opposed to debit card payments which can be declined.

Some credit card companies do not accept debit card payments at all, like Capital One. Others will allow it but charge a fee, like a cash advance fee, for paying this way.

The only way to pay a credit card bill with a debit card is through a third-party processor like Plastiq. You provide your debit card information, and Plastiq will send a physical check to your credit card issuer. However, these services charge a processing fee, usually around 2.5% of the transaction amount.

Pros and Cons of Paying Credit Cards With Debit Cards

Paying your credit card bill with a debit card does offer some potential advantages:

Pros:

• Immediate availability of credit – When you pay with a debit card, your credit limit is replenished right away. With bank account payments, it takes a few days for the transaction to process.

• Easy to monitor – Debit card payments will show up immediately on your account, allowing you to closely track your spending.

• Potential points/cash back – Some debit cards offer rewards that could offset credit card processing fees.

Cons:

• Possible fees – Most credit card companies will charge a fee for paying with a debit card.

• Risk of declines – Debit cards are more likely to be declined if you don’t have sufficient funds. This could result in late fees.

• Third-party fees – Services like Plastiq charge 2-3% to process debit card credit card payments. This can eat into any rewards earned.

• No guarantee – There is no guarantee that the debit card payment will go through in time to avoid late fees.

Tips for Paying Credit Card Bills

Given the limitations and fees involved with using debit cards, it’s usually best to stick with linking your bank account. Here are some tips for paying credit card bills:

• Always pay at least the minimum due each month before the due date to avoid late fees and interest.

• Set up automatic payments through your bank account for the full statement balance or a fixed amount if you can’t pay in full.

• Pay more than the minimum when possible to pay down balances faster. Any extra will go towards the principal.

• Look into balance transfer cards if you need more time to pay off a large balance without incurring more interest.

• Consolidate multiple balances to one card with a lower APR to simplify payments.

• If you lost your job or have other financial hardship, call your creditor to see if they can offer hardship assistance.

When Does It Make Sense to Use a Debit Card?

The only time it really makes sense to pay a credit card bill with a debit card is if you need immediate access to your available credit limit. Say you are booking an upcoming trip and want to free up credit on that card. Paying with a debit card will replenish your limit right away. Just be aware of any fees involved.

You can also use a debit card if you are in a real pinch, already missed the due date, and need to get a payment through immediately to avoid further late fees. But again, the fees incurred are likely to exceed any late fees.

Alternatives to Paying Credit Cards With Debit Cards

If you don’t want to link a bank account or get hit with debit card processing fees, what are the alternatives for paying credit card bills? Here are a few options:

• Money order – Purchase a money order from the post office or grocery stores, then mail it to your credit card company.

• Cash – Some credit card companies allow cash payments in branch. Not the most convenient if there’s not one near you.

• Reloadable prepaid card – Load funds to a prepaid debit card then use its bill pay features to send a payment. May incur fees.

• Peer-to-peer (P2P) payments – Apps like PayPal, Venmo, CashApp or Zelle allow you to send payments from your linked bank account or debit card. Just ensure your credit card company accepts them.

• Wire transfer – Initiate a same-day wire from your bank account to the credit card issuer. Expensive option but funds are sent immediately.

Key Takeaways

While it is possible in some cases to pay a credit card bill with a debit card, it is an inconvenient option that will likely incur fees. Your best bet is linking a checking or savings account to make payments seamlessly each month. Only use a debit card if you need immediate access to your credit limit or have no other payment options available in an emergency. Be sure to understand any fees involved if you go the debit card route.