Paying a credit card bill from another bank is possible, but not as straightforward as it could be.
For example, settling your NAB credit card bill with a Westpac debit card will not be possible because, unlike other countries where this is commonplace, most Australian banks are not set up to accept a credit card payment made with a debit card issued by another bank.
Ways to pay a credit card from another bank indirectly include using BPAY, Post Billpay, setting up a direct debit, or using a third-party payment processor.
Key takeaways
- Alternative payment methods include BPAY, direct debit, and Australia Post's Post Billpay. Restrictions and fees may apply.
- Most Australian banks don't allow direct credit card repayments using a debit card from another institution.
- Third-party payment processors — like Sniip and Easy Bill Pay — offer an alternative way to pay.
Ways to pay credit card bills from another bank
BPAY
One of Australia's go-to bill payment services, BPAY allows users to transfer funds from their bank account to a biller.
- Broadly accepted. You can use BPAY for any Australian institution that's on board with the service. Check their list here.
- Payment options. Besides debit cards, BPAY payments can be funded by cheque, savings, or transaction accounts. It may be possible use a credit card with BPAY, but support varies.
- Potential costs. Although generally a free service, some billers might charge a fee for processing BPAY payments.
Direct debit
Once set up, a direct debit is a hassle-free way to make sure bills are paid on time (assuming there's enough in the account payments are drawn from). There are some nuances to be aware of though.
- Automatic payments. Handle monthly credit card bill payments automatically.
- Restrictions. Many banks do not accept direct debit payments funded with a credit card.
Post Billpay
Operated by Australia Post, Post Billpay is a secure and convenient way to handle your bills, be it online or in-person.
- Easy payments. All you need is the Billpay code and reference number from your bill, along with your payment details (amount to send).
- Transaction cut-off times. Payments submitted before 5:00 pm AEST are processed overnight. Any payments made after this time will be processed the next business day. This is an important consideration in light of late fees.
- $10,000 limit. This applies to payments made funded with a credit card, debit card, or PayPal. Individual billers may set their own minimum and maximum limits.
- Processing fees. Post Billpay is free to use. Check that the biller does not charge a processing fee for Post Billpay payments.
Debit cards
Very few banks accept debit cards issued by another bank for credit card bill payments. You can use a your debit card to fund one of the other payment methods.
- Banks that do not accept credit card bill payments made with a debit card issued by another bank include American Express, ANZ, Bank of Melbourne, Bank of Queensland, BankSA, Bankwest, Citi, Coles, CommBank, HSBC, NAB, Qantas Money, St.George, Westpac, Woolworths.
- This is not an exhaustive list of banks. If your bank is not listed above, it is unlikely you can use a debit card from another card to pay your credit card bill.
Third-party payment processors
It's possible to pay your credit card bill using a debit card from a different bank using a third-party payment processor.
Consumer options
- Consumers have a limited choice of third-party payment processors.
- Sniip lets consumers pay any bill, including a credit card bill, with a debit card.
- Easy Bill Pay also supports bill payments funded with debit or credit cards.
Business options
- Businesses have a wider choice of third-party payment processors, including B2BPay and Reward Pay.
Credit cards
No bank will allow you to pay a credit card bill with a credit card issued by another bank.
- You can use a credit card balance transfer to pay off a credit card. However, there is no guarantee of being approved and balance transfers take time to process.
- Some third-party payment processors can be funded with a credit card, but they charge a processing fee.
- Paying a credit card with a credit card is generally not a good idea. Consider options if possible.
FAQs
Is it possible to directly repay my credit card with a debit card from another bank in Australia?
No, most Australian banks and credit issuers don't allow direct credit card repayments using a debit card from another bank. However, they offer various internal methods like internet banking, telephone banking, branch banking, and app banking.
What indirect payment options are available to pay my credit card bill?
Some banks accept payments from another bank via services like BPAY, direct debit, and Australia Post's Post Billpay. Check your statement for available options.
Can I use BPAY to pay my credit card bill from another bank?
Yes, BPAY is widely by banks for bill payments. However, many banks won't accept BPAY payments funded with a credit card (but will when funded by cheque, savings, or everyday transaction accounts). If a credit card issuer allows BPAY transactions for another bank's credit card bill, check if it's classified as a purchase or a cash advance before paying.
