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Can You Make An Eft Payment with A Credit Card?
July 1, 2025
Quick Answer
EFT payments are exclusively bank-to-bank transactions and cannot be funded directly with a credit card.
Should You Make An Eft Payment With A Credit Card?
Using a credit card for an EFT payment involves weighing its advantages and disadvantages.
Benefits of Using a Credit Card
- Earn Rewards: You can accumulate points, miles, or cash back on the payment, depending on your card's reward program.
- Payment Flexibility: It allows you to make a payment now and pay your credit card balance at a later date.
- Consumer Protections: Credit card payments often include fraud protection and a formal process for disputing unauthorized charges.
- Record Keeping: Payments are clearly itemized on your monthly credit card statement, simplifying tracking.
Costs of Using a Credit Card
- Processing Fees: The recipient or a third-party payment service may charge a convenience fee, typically a percentage of the transaction amount.
- Interest Charges: If you carry a balance on your card, the high interest rates can significantly increase the total cost of the payment.
- Cash Advance Classification: Some issuers may treat the transaction as a cash advance, which incurs higher fees and immediate interest accrual.
How to Make An Eft Payment With A Credit Card
Using a credit card for an Electronic Funds Transfer (EFT) can be a strategic way to earn rewards or manage cash flow. Here’s how to approach the process effectively.
- Verify Acceptance and Fees: Before anything else, confirm that the recipient accepts credit cards for EFT payments. Also, inquire about any processing or convenience fees, as these can sometimes outweigh the benefits.
- Understand the Transaction Type: Be aware that some financial institutions may classify a credit card EFT as a cash advance. This often comes with higher interest rates and fees, so check your card’s terms.
- Choose the Right Card: Select a card that maximizes your return for the transaction, whether through rewards points or cash back, without incurring high fees. You can use tools like Kudos' explore cards tool to find a suitable match.
- Provide Payment Information: On the recipient’s payment portal, select the credit card option and securely enter your card number, expiration date, and CVV code, just as you would for any online purchase.
- Confirm and Document: After submitting the payment, wait for a confirmation screen or email. It’s always wise to save a copy of the transaction receipt for your financial records.
Impact On Your Credit Score
Using a credit card for an EFT payment can affect your credit score in several ways. Here are a few key factors to consider before you proceed.
- Credit Utilization Ratio. This payment increases your credit card balance, which can raise your credit utilization ratio. A higher ratio may negatively impact your credit score.
- Cash Advance Classification. Some issuers may treat EFT payments as a cash advance. This often comes with higher interest rates and fees, potentially affecting your credit.
- On-Time Payments. While the EFT payment is on time, you must also pay your credit card bill promptly. A late credit card payment will negatively impact your score.
Alternative Ways To Make An Eft Payment
Direct Bank Account Debits
A primary alternative to credit card-based EFTs is authorizing a direct debit from a checking or savings account. This method, commonly known as an ACH transfer, involves providing your bank routing and account numbers to the merchant or service provider. It facilitates secure, direct withdrawals for one-time or recurring payments, such as utility bills or subscriptions. This approach leverages your available bank funds without involving a line of credit, offering a straightforward way to manage electronic payments.
Third-Party Payment Platforms
Services like PayPal, Venmo, or Zelle offer another route for making EFT payments. By linking your bank account to one of these platforms, you can send money without sharing your banking details directly with the recipient. These services often feature adjustable settings for enhanced control, including transaction limits, security notifications, and payment preferences. This allows users to customize their payment experience while still drawing funds directly from their bank account instead of a credit card.
Choose the Right Card to Make An Eft Payment
Making an EFT payment is straightforward, but using the right card can unlock significant rewards, from cash back to travel points. With nearly 3,000 credit cards in its database, the Kudos Explore Tool helps you compare features and find the perfect match for your needs. You can see a curated list of the best credit cards to ensure you're maximizing every transaction.
For those aiming to get more from their cards, Kudos is the premier free shopping tool for online purchases. We are currently offering a $20 reward after your first eligible purchase when you sign-up for free with code “GET20” and complete a transaction at a Boost merchant.
Frequently Asked Questions
What are the fees for using a credit card for an EFT payment?
Expect processing fees from the payment service and potentially higher cash advance interest rates from your credit card issuer.
Will using a credit card for an EFT payment affect my credit score?
Yes, it can increase your credit utilization and may be reported as a cash advance, potentially impacting your score.
Do I earn rewards for making an EFT payment with a credit card?
Usually not. Most credit card issuers exclude transactions treated as cash advances from their rewards or points programs.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
