How to pay your credit card from another bank

Is it possible to pay a credit card from another bank?

Yes, it is surprisingly easy to pay off a credit card with funds from a different bank account. The main thing you’ll have to do is add your credit card from another bank as a “payee” to your chequing account, which is a straightforward process that we discuss below.

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How to pay a credit card from a different bank

There are a variety of ways to make a payment to your credit card from a different bank.

1. Add a payee: Via your bank’s online portal or mobile app, you can set up your credit card from a different bank as a “Payee” in your main bank’s chequing account. Just open your chequing account and go to the "Bill Payments" or "Add Payee" section. Search for your credit card issuer and add your credit card as a payee by giving the required information, such as your credit card number and the payment amount. Your bank will then automatically connect your credit card from the other bank as a payee.

To make payments in the future, you simply select the credit card you want to pay, insert the amount of the payment and your bank will take care of the rest. Once your credit card is set up as a payee, you can make one-time or recurring payments from your chequing account to pay your credit card bill.

Note that many bank’s allow you to make recurring payments or set up autopayments for any of your payees. However, as your credit card bill likely changes from month to month, this may not be a good option as you would risk overpaying or underpaying your credit card some months.

2. Telephone banking: Call your credit card issuer's customer service line and provide them with your bank account details from the other financial institution. They will assist you in setting up a payment over the phone — you may need to send in a void cheque from the bank account you want to make a payment from.
3. In-person at your bank: Visit your bank’s branch where you hold your account and request a bill payment to your credit card issuer. You'll need to provide your credit card account number and the issuer's payee information.

How can I pay my credit card bill?

You can pay your credit card with the same options mentioned above: by adding it as a payee using your bank’s online payment portal, via your bank’s mobile app, by phone or by going in-person to a branch.

While it’s quite straightforward to pay a credit card balance from a different financial institution from your chequing account at your main bank, it’s generally even easier to make a credit card payment when both your credit card and your chequing accounts are with the same bank.

When your chequing account and credit card account are with the same bank, the accounts are usually automatically linked. Most banks let you pay your credit card directly from your chequing account without needing to even set it up as a separate payee. For example, when you log into your online banking portal, you'll often see your credit card account listed on the same dashboard as your chequing and savings accounts. To make a payment, you just have to pick your credit card account and choose the "Make a Payment" or "Transfer" option.

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Can you pay a credit card with another credit card?

In Canada, you generally can’t pay your credit card balance off with a different credit card. And, frankly, even if you could, it wouldn’t be a good idea because it would likely lead to a cycle of debt that could be difficult to break. When you use one credit card to pay off another, all you’re really doing is moving your debt to a different card, which will certainly not help your financial situation in the long run.

Some people may even use a cash advance on one credit card to pay off another, but this is also a potentially dangerous — and temporary — solution, because when you take out a cash advance, interest starts accumulating immediately. Furthermore, cash advance interest rates tend to be several points higher than standard purchase interest, which would likely lead to even more debt accumulation.

A better idea would be to take advantage of a credit card’s balance transfer option. Some credit cards offer promotional balance transfer rates that let you move high-interest debt from one card to a different one with a lower or, better yet, 0% introductory interest rate for a set time period. While this can help you save on interest and pay down your debt faster, balance transfers usually come with a fee (typically 2 to 3% of the transferred amount) and will start accruing interest at the regular rate once the promotional period ends. That is why it’s so important to pay off the entire balance during the promotional period.

FAQs

Can you pay a credit card online from a different bank?

Yes, you can pay a credit card online from a different bank. You’ll just need to add your credit card as a “Payee” in the chequing account you use to pay your bills. You’ll then be able to pay your credit card off in the same way you would pay off any other bill.

Can I pay my credit card bill with another bank debit card?

No, unfortunately you can’t use your debit card from a bank to pay a credit card from a different bank. That being said, you can use your debit card to withdraw cash from your bank account or at an ATM and then use that money to pay your credit card bill in person at your credit card issuer's bank branch.