Some bills don't accept credit cards. Rent, school fees and some tax payments are common examples. According to reporting by Big News Network.com, there are ways to pay them by card anyway.
The catch is cost. These routes usually charge a fee. Check that fee before you pay, because it can cancel out your card rewards.
Key takeaways
- Payment apps can take your card payment and send the money to the receiver's bank account.
- The app usually charges a fee, plus 18% GST on that fee.
- Your card rewards may not cover the fee. Some cards give no rewards on such spends.
- Pay the full card bill on time, or interest will make this far costlier.
- A cash advance on your card is the worst way to do this.
How paying bills with a credit card works
Here's the usual route. You pay a payment app using your credit card. The app then sends the money to the bill receiver's bank account. The receiver sees a normal bank transfer and never deals with your card.
The app earns money by charging you a fee. It's usually a small percentage of the bill. GST of 18% is added on top of that fee. Exact fees differ from app to app, so check the screen before you confirm.
There's another route, called a cash advance. You pull cash out using your card and pay the bill yourself. Don't do this. Banks charge a fee up front, and interest starts the same day. There's no interest-free period.
What it costs you: a worked example
Say you pay a ₹20,000 bill. Assume the app charges 1.5%. Here's how the numbers add up.
| Item | Amount |
|---|---|
| Bill paid by card | ₹20,000 |
| App fee at 1.5% | ₹300 |
| GST at 18% on the fee | ₹54 |
| Total extra cost | ₹354 |
So you pay ₹354 extra to use the card. If your card gives 1% back, that's ₹200. You're still ₹154 down. The 1.5% is only an example, not a quote from any app.
The gain is time. Many cards give an interest-free period of up to about 45-50 days. You keep your cash a little longer. That helps only if you repay the full bill on the due date.
Who is affected
Tenants, parents paying school fees and small business owners feel this most. People chasing a card's spending target may also use it. Anyone who already carries a card balance should skip it. They'd pay interest on top of the fee.
Some cards also leave out rent or similar spends from rewards. Read your card's terms. Banks can change these rules, so check again from time to time.
What to do now
Follow this short checklist before you pay:
- Check the fee and GST on the final screen.
- Read your card's reward rules for rent and utility spends.
- Make sure the app is a regulated payment company.
- Note your card due date and plan to pay the full amount.
- Compare with other ways, like a plain bank transfer.
If you often need extra cash for bills, read our personal loan guides. Compare today's interest rates too. Then use the EMI calculator to see the monthly cost.
Frequently asked questions
Is it safe to pay bills with a credit card through an app?
It's generally fine if the app is a regulated payment company that follows RBI rules. Read the fee and terms before you confirm.
Is a cash advance cheaper than an app fee?
Usually not. Banks charge a fee, and interest starts from day one. There's no interest-free period.
Will I earn reward points on these payments?
It depends on your card. Many cards give lower rewards or none for rent and similar spends.
BankCreds analysis
This trick saves time, not money. For most people the fee roughly equals the rewards, so the gain is close to zero.
When it actually helps
The real benefit is timing. Say a tenant owes ₹30,000 rent on the 1st, but salary lands on the 7th. At the example 1.5% fee, the cost is ₹450 plus ₹81 GST, or ₹531. That buys about six weeks before cash leaves your account. Spread over a year, that's roughly 14% a year. It's fine for one tight month and poor as a habit.
What it doesn't mean
Don't read this news as a green light for card-funded rent every month. It isn't free, and it's risky if you can't repay the full card bill on time. Use it only when the timing truly helps.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Sources & references
- Big News Network.com — originating report https://www.bignewsnetwork.com/news/279359563/how-to-pay-bills-with-a-credit-card-when-they-dont-accept-cards
- Reserve Bank of India — RBI sets the rules for payment companies and card charges https://www.rbi.org.in/
Source links are shown as plain text, not clickable links. Copy a URL into your browser to read the original report.
Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
Rates and figures. Interest rates, per-gram values and premium bands quoted here are indicative, move daily, and differ by borrower profile, city and lender policy. Confirm the final number with the institution before you act on it — the sanction letter or policy schedule governs, not a news report.
Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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