How to Pay Electricity Bill with a Credit Card

Online electricity bill payment with a credit card is simple and quick. Major banks include top fuel, utility, electricity, and telecom service providers in their biller list. After confirming that your electricity provider is included, follow these steps:

1. Log in to the bank account linked to your credit card

2. Select the biller from the biller list in the account

3. Enter details such as customer ID and the bill amount

4. Choose a credit card as the payment mode

5. Provide the credit card details and complete the payment

Using a credit card for monthly bill payments comes with several benefits, particularly when it comes to electricity bills. Some of the common ones include:

• Convenience

Credit cards are arguably one of the most preferred options due to the convenience they offer. You can set up auto-pay or use reminder features available in the credit card app to ensure payments are never delayed.

• Improve Credit Score

Making electronic bill payments frequently through a credit card has a positive impact on your credit score. Maintaining a good credit score is important as it helps you get better offers on loans and credit cards.

• Expense Tracker

Credit card apps include built-in expense-tracking features that allow you to monitor past months’ bills. Tracking electricity bills for a new electronic device helps determine its energy consumption, allowing you to reduce usage if necessary.

• Reward Points

Paying bills with a credit card earns you reward points, which can be used for future purchases before expiry. Some credit cards offer reward points with no expiry, giving you the flexibility to redeem them whenever required. 

Here are essential things to remember when using a credit card for monthly bill payments:

• Check Transaction Charges: Compare fees from different options before using your credit card for payments

• Verify Biller Availability: Ensure your bill provider is listed with your credit card issuer

• Pay in Full When Possible: Clearing the full balance helps avoid interest charges

• Know Your Billing Cycle: Track due dates or set reminders to prevent late payments

• Review Your Statements: Regularly check credit card statements to confirm all payments are correct and no bills are missed

Failure to pay the bill on time results in a penalty. It may also lead to frequent calls from the provider or disconnection of services. Various methods are available to pay the bill:

• Mobile Application of Electricity Providers

Many electricity providers offer mobile applications for bill management. Paying through the app saves payment details, ensuring a smoother experience for future transactions.

• The Bharat Bill Payment System (BBPS)

This system, mandated by the Reserve Bank of India (RBI), enables customers to pay bills online or through a network of authorised agents.

• Payment Banks

These financial institutions provide basic banking services such as deposits, withdrawals, and payments. The RBI grants licences for operating payment banks. Six payment banks in India include:

• India Post Payments Bank

• FINO Payments Bank

• Airtel Payments Bank

• Jio Payments Bank

• Paytm Payments Bank

• NSDL Payments Bank

   

• Mobile Wallets

Virtual wallets offer a quick and convenient way to pay electricity bills. Applications such as MobiKwik, SBI Buddy, Paytm Wallet, ICICI Pockets, and Amazon Pay Wallet allow users to create an account and complete payments swiftly.

• Provider’s Office

Paying bills in person at the provider’s office remains an option. This method involves filling out a form and making payments manually, though it is less common due to time constraints and inconvenience.