Is it possible to receive a salary on a credit card

Can you receive your salary on a credit card: what the law says

To receive your salary on a credit card, it is enough to write an application addressed to your employer and indicate the current bank details and your account number in it. Every client can find this information in the service agreement or in the personal account of the banking app. 

It is important to submit the application no later than 15 calendar days before the money transfer. This nuance is specified in Article 136 of the Labor Code of the Russian Federation. If this deadline is violated, the employer may send the funds to the old account. If deadlines are violated and the transfer was made to the old details, you do not need to write another application. The next salary or advance payment will be credited to the required card. 

An employee can change the card for receiving salary as many times as they want. The main thing is not to forget to notify the employer about this.

When it is profitable to receive your salary on a credit card

If a person mainly uses a credit card for regular payments and purchases, it will be more convenient to use it to receive their salary as well. In this case, the debt to the bank will be repaid automatically when funds arrive in the account, and the person will not have to top up the credit card via an ATM or make transfers with or without a commission.

Also, active use of a credit card will help increase the rating of a potential borrower. This opportunity should be used by people who want to take out a loan at a low rate and on favorable terms in the future. Due to the fact that the salary will be regularly credited to the card, debt on the credit card will not accumulate, and consequently, the credit history will be flawless. 

If you choose the right credit card, you can receive a good profit every month through cashback and bonuses. 

If the amount of salary and other receipts to the credit card balance is higher than the expenses on it, the remaining amount will be credited to the account and the client will be able to use it like a regular debit card. 

How funds are distributed on a credit card after receiving a salary

The order of distribution depends on the client's current credit obligations, namely the required mandatory payments and the amount of debt. When funds arrive in the account, they are used as follows: 

• the principal debt on the card is repaid; 
• interest is written off if the grace period has expired; 
• fines and penalties are paid off; 
• SMS notification is paid for (if connected); 
• card maintenance fees are charged (if applicable). 

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Cash withdrawal

You can withdraw funds from a credit card that are the client's own money and were credited to the credit card as a salary in an amount exceeding the credit limit. 

For example, the credit limit is 70,000 RUB, but the client did not use them during the month, and then another 70,000 RUB—salary—arrived in their account. The balance will show 140,000 RUB, but you can only withdraw 70,000 RUB. 

If the client used the credit card limit in the previous month, the debt will be automatically repaid by transferring the salary. In this case, no personal funds of the client will remain on the card. Only 70,000 RUB will be available, which are the bank's money, and withdrawing them may incur a commission. 

When receiving a salary on a credit card, you should remember that you can freely dispose of only your own funds. This is due to the fact that free use of the credit limit is possible only if conditions are met. The free period will be canceled if credit funds are withdrawn at an ATM or transferred to other cards. 

Terms of holding own funds

If a client does not use the card for a month or if a balance exceeding the credit limit remains on the card after the debt is repaid, these are the owner's funds. Using them does not activate the credit. 

If the credit card functions as an interest-bearing card, interest may be accrued on the balance above the limit. Check with the bank for details when applying for the card. Most often, interest-bearing cards feature paid maintenance, and only the first year may be free. 

Frequently asked questions

To conclude the article, we will answer the most frequently asked questions on the topic.

How to set up salary transfers to a credit card?

To have your salary deposited to a credit card, you need to submit a corresponding application to the accounting department to transfer your income to the new details. The request must indicate the bank details and the account number. 

Does the employer have the right to refuse to transfer salary to a credit card?

According to current legislation, an employer has no right to refuse an employee's request to transfer their salary to a credit card. Pursuant to Article 136 of the Labor Code of the Russian Federation, citizens have the right to independently choose the credit institution whose services they wish to use.  

Are employees required to obtain a MIR card to receive their salary?

The obligation to use a MIR card is established by Federal Law No. 88-FZ of 01.05.2017, but it applies exclusively to budgetary organizations. Such institutions are required to transfer employees' salaries only to a MIR card. Commercial organizations and individual entrepreneurs cannot impose such a requirement on their employees; they must transfer wages to cards of any bank chosen by the employee. Violation of this condition entails liability in the form of fines, the amount of which is specified in Part 6 of Article 5.27 of the Administrative Code. 

Can an unpersonalized card be used to receive a salary?

Organizations are required to transfer employees' salaries to any card specified in the application. The card is always linked to a bank account, which is personalized.