Using A Credit Card To Transfer Money To India

by | Feb 14, 2013 | Money & Finance

Many Indian nationals in the UK are professionals. They are medical doctors, engineers, computer technicians, etc. Their income and their work ethics are admired within the community; they rapidly fit into their way of life, including having credit cards.

Regardless of how they may live in the UK; the family in India is very important, and remitting money for the care of elderly parents; the education of siblings and medical care is done as a matter of cultural pride. Money transfer to India from UK using a credit card is a viable alternative to cash.

Credit cards can be used as a source of cash in the form of a cash advance. When this service is availed of, the cost is very high; some card companies charge as much as 4% of the advanced amount against the card holder. Fortunately, credit-card companies do not see online money transfer to India from UK as a cash advance as the money is not going to the sender. The transaction is seen as a credit purchase, the credit card company simply sees the transaction as the purchase of a service.

When the transaction is viewed as a purchase rather than cash advance, it is far more economical. The 4% cash advance fee is only the beginning; the 4% of the transaction amount is put on your credit card, and you then pay the usual credit card rate of interest.

Using a credit card to remit money is usually the choice of those people who keep a minimal amount of money in their current account, the bulk being kept in savings, which draw interest.

Arranging the transfer using cash is the same procedure except you give the online money transfer company details of your bank, and the funds are debited directly from your account and credited to the correspondent bank in India. The results are the same; the person in India receives their remittance, which was originated in Pounds, in rupees.

The use of electronic money transfer has blossomed since the birth of the Internet and high levels of security for online transactions. People today use the Internet, in co-operation with their bank, their credit card or debit card to conduct all kinds of transactions.

  • Bills are paid on-line
  • Purchases are made and paid for on-line
  • Wages and salary are received on-line
  • Currency is transferred on-line

The transactions are very quick, which is one of the objectives, especially if the money is needed for an emergency situation. The transfer is perfectly safe; the identities of the parties are protected, and the transfer is guaranteed. There is no need for physical cash; the transaction is all electronic, done from the comfort of your living room.

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