Can you pay a credit card with another credit card?

A business with more than one business credit card could use a payment processor to pay off a credit card with another credit card.

1. Select a payment processor. Two of the better-known companies are B2Bpay and RewardPay — we have used both to pay bills and earn points — but there are several others. They all do the same thing: let you use your credit or debit card to pay bills, including credit card bills.
2. Register for an account. You’ll need to provide your name, contact details, and relevant business information.
3. Set up funding. You can use a credit card as the source of funds for transactions.
4. Add your bill. You may be required to upload a copy of your credit card statement and enter payment details. Their systems may be able to get this automatically from the uploaded statement.
5. Send payment. The processor will draw from the credit card you set up as the source of funds and pay your credit card bill. It can take a day or two to process.

The drawback with this is the payment processor’s fee, which is typically 2-3% of the amount being paid. However, your credit card will not treat the transaction as a cash advance. This means you avoid the cash advance fee and cash advance rate. It also means you could earn points on the transaction.

For businesses, cash flow is king. Paying off a credit card with another credit card should not be done lightly since it can negatively impact the feasibility of your business.

Consumers also have options for paying a credit card with a credit card.

Use a third-party payment processor

Most third-party payment processors are designed for businesses, but some work with consumers.

1. Choose a payment processor. Options are limited, but Easy Bill Pay says they can be used to pay credit card bills and draw funds from a credit card.
2. Register your account. Signing up for their service is simple and doesn’t take long to complete. They also have iOS and Android apps.
3. Enter your bill. You can upload a photo of the bill, forward an email, or manually enter the details.
4. Set up funding. Nominate a bank account, credit card, or debit card as the source of funds for bill payments.
5. Send payment. Easy Bill Pay will pay the credit card bill with your nominated credit card.

The drawback of using Easy Bill Pay is the subscription fee. There are no contracts, though, so you could use them once and close your account.

Third-party payment processors can also be used as a way to pay a credit card from another bank.

Do a balance transfer

If you have good credit, you could transfer a balance from one or more credit cards to a new balance transfer credit card. It’s a simple process, but it does take time.

1. Compare balance transfers. Banks use balance transfer offers to attract new customers. A typical introductory balance transfer offer has no interest for a few months.
2. Apply online. You’ll need to apply for a new credit card. As well as providing your personal and financial information, you’ll also need to provide proof of income (payslips) and ID.
3. Balance transferred to new account. The new bank pays off your old cards. What you owe will be added to your new credit card balance. If you got an interest-free balance transfer, there would be no interest until the introductory period ends.

There are drawbacks to paying off a credit card with a credit card balance transfer.

• It takes time. A typical credit card application and balance transfer takes several days.
• You might not get approved. There is no guarantee that your application for a new credit card will be approved. If you are declined, it can hurt your credit score and make it more difficult to get approved for a different line of credit.
• There will probably be a balance transfer fee. This is typically 2-3% of the amount transferred. It is a one-off fee and can be added to the balance on your new card.

The main benefit of a balance transfer is the reduced interest. You can then use the freed-up money to pay down the outstanding balance.