Can credit cards transfer money? Suggest alternative solutions

1. Can credit cards transfer money?

Credit cards are convenient financial tools that help users enjoy cashless shopping services. But Credit cards do not support transfers like debit cards. The reason is because:

• Credit cards are essentially one of the bank's lending tools: Credit cards do not contain cash like debit cards but act as a loan to the user with a limit issued by the bank. Users can "spend now, pay later" when the payment is due, but cannot transfer money from a credit card to another account.
• Control customers' finances and outstanding debt: Not supporting transfer is the bank's way of controlling customers' outstanding debt and managing credit risk. 

Credit cards only support direct payment, online shopping or cash withdrawal. If you want to transfer money, you will need to use other cards such as debit or charge cards.

2. Alternative to credit card transfers

Although credit cards do not support the transfer function, there are still many alternatives to help you make the most of your credit card as follows:

2.1. Pay bills, shop with credit cards

Credit cards are actually great for paying bills and shopping thanks to their convenience and many attractive benefits. Benefits of credit cards when used to pay bills and shop:

• Convenient and fast: With just a credit card, you can pay when shopping or pay electricity, water, internet bills as well as many other services without using cash, especially in urgent situations.
• Offers and cashback: Many banks offer cash back programs, rewards points or discounts for every credit card purchase. Thanks to that, you can save a significant amount of costs.
• Effective spending management: Transactions are recorded in detail in the card statement, helping you easily track and manage your personal budget.
• Accumulate bonus points: Every time you spend, you can accumulate reward points to exchange for attractive gifts or services from the card-issuing bank's partner.
• Enhanced Personal credit: Using credit cards wisely and paying on time will help you build and improve your personal credit score. This will be an advantage for you when you need to borrow capital from the bank for larger purposes such as buying a house or car in the future.

How to pay by credit card:

• Online payment (Online): Payment through shopping websites or applications is one of the popular forms of credit cards. After selecting the product or service, click to pay, enter your credit card information, including: card number, expiration date, CVV code (3 security numbers on the back of the card). The bank will then ask you to enter the OTP code (transaction confirmation code) sent via SMS or via the online banking application. The transaction will be completed once you confirm.
• Payment at the store (Offline): Credit cards can be used to pay at stores with POS machines. You can give your credit card to the staff or swipe the card into the POS machine if paying yourself, then enter the PIN code (if required) or sign the payment receipt (depending on the bank and store regulations).

2.2. Withdraw cash from credit card 

If you need cash urgently, you can withdraw money from your credit card at ATMs. However, you should limit abuse of this method because:

• High interest rates: When withdrawing money from a credit card, banks will charge interest on the amount you withdrew. The interest rate is usually very high, about 18%/year or more, and interest will be calculated right from the time of withdrawal.
• High withdrawal fees: Cash withdrawal fees from credit cards are often very high (usually > 4% of total transaction amount, minimum 100,000 VND). For example, if you withdraw about 10 million VND in cash, the withdrawal fee you will have to pay is 400,000 VND.
• Withdrawal limit: Most banks only allow you to withdraw up to 70% of the card limit. For example, if your credit card has a limit of 50 million VND, you can only withdraw a maximum of 35 million VND.
• Impact on credit score when withdrawing cash multiple times: Withdrawing cash from a credit card multiple times can negatively affect your credit score because the bank will evaluate you as having high credit needs and a high risk of causing bad debt.

After withdrawing money, you will have to pay the withdrawn amount, withdrawal fee and interest incurred in the next statement period. Therefore, if it is not really urgent, you should limit the use of this feature to avoid incurring unnecessary costs.

3. Notes when using credit cards

To take full advantage of the benefits from credit cards and avoid unnecessary risks, keep in mind the following 5 notes when using credit cards:

• Pay your outstanding balance on time: If you do not pay on time, you may be charged high interest rates and late payment fees, while also affecting your personal credit history. Make sure that at least the minimum amount required on the statement is paid to avoid penalties.
• Check your credit statement periodically: To make sure your credit card transactions are in order, check your monthly statement. This helps you promptly detect unwanted transactions or system errors from the bank.
• Secure credit card information: Revealing credit card information can create conditions for thieves to appropriate or defraud the money on the credit card. Therefore, always keep your card number and personal information confidential, and absolutely do not ask anyone else to make credit payments for you.
• Use credit card incentive programs: Most credit cards come with many incentive programs such as cashback, discounts, and reward points when shopping. Take advantage of these programs to maximize the benefits of using your card.
• Calculate the interest-free period to pay the outstanding debt on time: Most credit cards today have an interest-free period of 45 - 55 days. This is the time you can use the credit amount without being charged interest. Make a reasonable spending plan and pay off the outstanding debt during this period to avoid having to pay high interest rates.

4. Open a SeABank credit card - Shop freely, receive thousands of incentives

Banks today provide more and more attractive benefits and incentives for credit card users. If you are looking for a credit card that not only supports quick payments but also has many outstanding incentives, don't miss the following credit cards from SeABank:

Signature international credit card

• Unlimited cashback up to 10%.
• Free annual fee for the first year.
• 24/7 care service.
• Comprehensive protection of all types global insurance lcome 10 billion VND.

SeABank Visa Platinum international credit card

• Free card issuance.
• Unlimited cashback for all transactions.
• Lifetime annual fee refund.
• Free insurance package up to nearly 10 billion VND.

SeA-Easy international credit card

• Free card issuance.
• Cash back up to 8% when paying online.
• Lifetime annual fee refund.
• Discount up to 70% with SeABank partners.

SeALady Cashback international credit card (Visa/MasterCard)

• Specialized credit cards for women.
• Free card issuance.
• Lifetime annual fee refund.
• Refund all payment transactions.
• Discount up to 70% at SeABank partners.

BRG Elite credit card

• Free issuance and annual fees.
• Refund all spending transactions.
• Discount up to 70% at BRG Group and SeABank partners.

BRG Golf SeABank credit card

• Free card issuance fee and annual fee for the first year.
• 30% discount on golf fees and 10% off BRG Golf membership fees.
• Free insurance package up to nearly 10 billion VND.

SeATTravel credit card

• Receive Vietnam Airlines Golden Lotus bonus miles or free e-voucher for 01 round of golf / 02 nights of relaxation when opening the card and every quarter/
• Get Golden Lotus bonus miles for every transaction/

Above is a detailed answer to the question "Can credit cards transfer money?". Credit cards do not support transfer features like debit cards or payment cards. However, with many attractive incentives and utilities, credit cards are still a great choice for you to enjoy convenient and economical shopping experiences.