How to pay your bills with a credit card

Can I pay bills with my credit card?

There are 3 ways to pay bills with a credit card:

1. Use the card directly. Plenty of service providers allow you to enter your credit card details and set up a recurring payment, just like you would with a direct debit.
2. Use BPAY. You can use BPAY as long as the biller and your credit card allow it. Many do, but it is by no means guaranteed. And some card companies classify BPAY payments as cash advance transactions, which can get expensive (more on this below).
3. Use a payment platform. There are platforms you can use to pay bills with your credit card, such as Sniip and B2BPay. You have to pay a fee, but these platforms let you earn points on your bills (something you often can't do with BPAY).

How to make BPAY payments with a credit card

BPAY gives you a way to make bill payments from your chosen bank account or credit card account (although credit cards aren't always accepted).

How to make a BPAY payment with a credit card

The steps to make a BPAY payment can vary depending on your provider and whether you're on a mobile or Internet banking platform, but usually they follow this path:

1. Log in to your credit card account.
2. Choose the bill payment option, then select BPAY.
3. Enter the biller code, reference number and account. You'll find these in the payment section of your bill.
4. Follow the prompts to confirm the payment.

Are there any risks to using BPAY with a credit card?

• BPAY credit card restrictions. Not all credit cards give you a way to make BPAY payments. When that's the case, you won't see a BPAY option for your credit card account – even if it's there for any other accounts you have with the same bank.
• BPAY credit card acceptance. Not all BPAY billers accept credit card payments. If that's the case, your BPAY credit card payment won't go through. But you can make a BPAY payment from regular transaction accounts and many savings accounts.
• Cash advance transactions. Many credit card providers put BPAY payments into the same category as cash advance transactions, which attract a cash advance fee and cash advance interest charges.
• Reward points. Usually, you won't earn points for making BPAY payments with a credit card, especially if they are processed as cash advance transactions. You can check the reward program terms and conditions to see if BPAY payments are eligible to earn points, or contact your credit card company.

How to earn points on BPAY bill payments with a credit card

If your credit card rewards program doesn't offer points per $1 for BPAY payments, you could still be able to earn points by making the payment through another platform. Here are some key options to consider:

Sniip

This is a free mobile app that gives you a way to make payments from any credit card or debit card to any BPAY biller, and you can earn points per $1 spent. You only pay a transaction fee, which is based on the card you use:

• Bank transfer: Free
• Debit card: 0.65%
• American Express: 1.29%
• Visa: 1.50%
• Mastercard: 1.50%

B2BPay

If you are a small business owner, this service gives you a way to pay billers and earn points for using your credit card. You just need to enter the biller's details, and the payment will be made through an EFT (electronic funds transfer) or

BPAY. BPAY card processing fees cost 1.2% for standard Mastercard and Visa cards, 1.55% for premium or corporate Mastercard and Visa cards. Just keep in mind that you need an ABN to use B2BPay as it's meant for businesses.

One-off bill payments with a credit card

As well as BPAY, there are other types of one-off payments that let you pay as you go. For example, you might choose to use your credit card to make a one-off payment on your tax bill through the Australian Taxation Office's payment portal. Or, visit an Australia Post Office to use the Bank@Post option for your bills.

These types of payment options are handy for bills that don't always cost the same amount or are less regular. Usually, you can make them in the same way you’d make a regular credit card payment:

• Online. Choose "Card" as your payment option and enter your details.
• In person. Swipe, insert or tap your card and follow the prompts to complete the transaction.

The main thing to watch out for with these payments is card fees, though that changes on 1 October 2026, when surcharging is banned on the eftpos, Mastercard and Visa networks, with American Express volunteering to match the same date. Until 30 September 2026, the ATO charges 1.45% if you pay a tax debt using an American Express card, 0.92% for a domestic Mastercard and 0.80% for a domestic Visa card. See our credit card changes tracker for what else changes that day.

How to pay rent with a credit card

Direct debit credit card payments for bills

Bills that are charged regularly can usually be set up as direct debits from your credit card account. This could include your mortgage repayments, insurance premiums, home utility services, gym membership, Internet and other subscriptions for entertainment services like Netflix or Foxtel. Very often, all you need to do is call your service provider.

How do you set up a direct debit with your credit card?

The specific details will vary depending on the financial institution, but the steps generally include:

1. Ask the biller for a direct debit payment option.
2. Provide your chosen credit card account details (i.e. credit card number, expiry date and three-digit card verification code).
3. Confirm the details and authorise the direct debit agreement.

What are the key factors to consider when using a direct debit to pay bills?

• Direct debit fees. Some service providers may charge a fee for direct debits from a credit card. This could be 1-3% of the total transaction cost, although this charge is becoming less common. Most service providers prefer that you set up a direct debit payment with them, and as such have made this a fee-free mode of payment alternative to BPAY, cheques or mail orders, etc.
• Declined payment/dishonour fees. If a payment is declined due to your card being over its credit limit, for instance, you could be charged dishonour fees twice – once by the service provider and once by your credit card provider.
• Overdraft fees. In some cases, the card provider might choose to honour the direct debit even when your account is over its credit limit. They will then charge you an overdraft fee and default interest.
• Interest charges. As with any transaction, the direct debit will be subject to interest fees if you carry a balance or if there is no interest-free period on your card. This is something you should always be conscious of when managing your credit card repayments.
• Cancelled subscriptions. If you cancel a direct debit subscription, you'll have to make sure no more charges come off your card. If you wish to stop the direct debit payments, you'll have to contact both your bank and service provider to ensure there is no misunderstanding and you don't get charged any dishonour fees.

When will you earn points for paying your bills with a credit card?

Unless you're using a payment platform that is designed to let you earn points for bills – such as Sniip – it can be hard to tell if you will or won't earn points for a particular bill payment.

Often, it comes down to what your credit card company classifies as an "eligible purchase" – and BPAY payments, government transactions and utilities are often excluded from earning points.

But it does vary, so it's worth checking your reward terms and conditions or asking your provider before you pay your bills to earn points.

If making bill payments are considered an eligible transaction, using a credit card to cover your bills can be a rewarding way to earn points on an essential expense.

As rewards and frequent flyer credit cards usually charge high interest rates, it's only worth it if you pay your balance in full each month and won't be charged any interest on these transactions. If you do rack up interest, the debt you'll collect will quickly outweigh any perks you get from earning points.

Frequently asked questions

• Is it good to pay bills with a credit card?

  Paying bills with a credit card can be beneficial if you earn rewards points or need to manage cash flow, as the payments can be automated, meaning you don't have to worry about having enough money in your account when direct debits come out. However, it can be risky if you don't pay off the balance in full each month, as interest charges can outweigh the benefits.

• Can I use my credit card to pay off bills?

  You can use your credit card to pay off bills, but this should be done carefully. Paying off bills with a credit card can help you earn rewards or manage cash flow, but you ideally want to pay off your balance in full each month, or you can end up spending a lot on interest.

• When should you not pay with a credit card?

  Avoid paying with a credit card if you cannot pay off the balance in full by the due date. High interest charges can accumulate quickly, making it more expensive than using a debit card or direct debit. Until 30 September 2026, you may also want to avoid using a credit card where a surcharge applies. From 1 October 2026 surcharging is banned on the eftpos, Mastercard and Visa networks, with American Express matching the same date voluntarily, so this stops being something you need to plan around.

• Is it better to pay with debit or credit card?

  This depends on your needs. It is better to pay with a credit card if you want to earn rewards or need additional buyer protection that credit card insurance can offer. However, a debit card may be better if you want to avoid debt or have difficulty managing credit. The best option depends on your financial habits and goals.

Written by

Amy Bradney-George

Journalist

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Amy is an experienced journalist with over 16 years of experience, contributing to major publications like Money Magazine, The Sydney Morning Herald, and ABC News Australia. Specialising in personal finance, she frequently appeared in media outlets and on radio. Amy holds a Bachelor of Arts in Journalism and Drama from Griffith University and earned RG146 certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, ensuring her expertise is grounded in current financial regulations. Amy was Finder's Senior Writer for Credit Cards from 2016 to 2024. See full bio

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