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How to pay your bills online with a credit card

Vidhu Bajaj avatar
Vidhu Bajaj
- 4 min read
How to pay your bills online with a credit card

Paying your bills online with a credit card is quite straightforward. Whether you want to charge your bills to plastic, however, depends on various factors, including your credit card provider, the type of bill, and the payment options provided by the merchant. 

There might be restrictions on using BPAY with your credit card. You also don't earn reward points on every bill paid online with your credit card. These include Australian Taxation Office (ATO) payments and some of your utility bills.

Setting up bill payments through your credit card online

There are a couple of ways in which you can use your credit card to pay bills online. Many people prefer to use their credit cards for making one-off bill payments, such as paying for an appliance or a car service. However, not all billers accept credit card payments, and some may only accept a limited number of cards. Some merchants might also charge a small percentage fee (also called a surcharge) for accepting credit card payments.

Besides using your credit card to pay as you go, it's also possible to set up direct debits from your card account for recurring bill payments. While choosing this option will free you from the hassle of remembering multiple payment dates, forgetting to pay your credit card bill on time could result in high interest charges and also hurt your credit score. It’s also advisable to keep track of your spending to ensure you can repay your credit card bill in full at the end of each month.

Can I use my credit card for BPAY payments?

BPAY is one of the most widely used bill payment services that enables users to transfer funds electronically to billers using cheques, savings or a credit card account. You can use BPAY to pay your bills to any Australian institution as long as it accepts BPAY as a form of payment. 

If you're wondering how to make a BPAY payment with your credit card, the process is quick and simple. All you need to do is check for the BPAY symbol and details on your bill. Once you find the details, log in to your credit card account and enter the details set out in the bill to pay. You can also schedule BPAY payments for a later date using your credit card account. However, payments made with a credit card can take up to three days to process. It's advisable to take down the receipt number after you complete the transaction.

Will I earn rewards by paying bills online with a credit card?

Paying bills online with your credit card is a convenient way of earning reward points. However, you'll be surprised to know that not all online credit card transactions earn reward points. Some reward credit cards tend to restrict points for specific bill payments, including ATO payments and utility payments. However, all credit cards have different terms and conditions. It's best to refer to your card's Product Disclosure Statement (PDS) or speak with your credit provider to learn about eligible transactions that will earn you reward points. 

You also might not earn any reward points when using your credit card for some BPAY payments that are processed as cash advances. This happens when your bank allows you to use BPAY with your credit card, even if the biller doesn't accept credit card payments. The transaction is treated as a cash advance in such a situation, and you're charged a cash advance fee for processing it. To avoid the additional fee, it’s worth finding out whether a particular biller accepts credit card payments before deciding to use your credit card online via BPAY. You may search the list of companies that accept BPAY payments on the BPAY website.

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Product database updated 21 Jul, 2024

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.