Can I transfer Zip Pay funds to a bank account?
You can't transfer funds from your Zip account to your bank account. But you may be able to consolidate (or transfer) some of your Zip accounts to a credit card or personal loan account.
Key takeaways
- Zip offers buy now pay later (Zip Pay) or a line of credit (Zip Money). You can use these services to pay for things, but you can't transfer money from Zip Pay to your bank account.
- You can transfer money from your bank account to pay off your Zip Pay balance but not the other way around.
- If you have a Zip Pay debt you want to consolidate, a few credit card companies will let you transfer unpaid Zip balances to a credit card.
Can I transfer Zip Money to my bank account?
No. Zip products are designed to let you pay for purchases now and then repay the money back in instalments. Zip doesn't offer you money but rather an approved credit limit. You can spend up to the amount you are approved for, on goods and services from merchants that partner with Zip.
According to Zip's terms and conditions, you can't use a Zip card for cash advance transactions (withdrawing money from an ATM), wire transfers, gambling, or to receive a balance transfer from another card.
Can I transfer Zip balances to a credit card or personal loan?
A balance transfer is when you move unpaid debts (typically unpaid credit card balances) to a new credit with a temporary 0% rate. This lets you get on top of your debts without high interest charges.
Most credit card providers only let you transfer unpaid credit card balances. They don't accept other debts like personal loans, lines of credit or unpaid buy now power later balances.
But some do. Citi and Virgin Money state that they accept credit card balance transfer requests from lines of credit. This is helpful if you have a Zip Money balance, as this is a line of credit.
This may not apply to Zip Pay, which is a buy now pay later product.
💡 Tip: If you're looking at a balance transfer card with a different provider, check with them first to see if they'll accept your BNPL transfer request. You'll also need to provide your Zip account details as part of the process.
What to think about before transferring your Zip balance
- Will you get approved? Check your credit score before applying for a balance transfer. And check that the card provider accepts transfers from lines of credits (it never hurts to call and ask before applying).
- Will the balance transfer save you money? Factor in the fees on the new credit card
- Do you have plan to pay the debt off?
- Interest rates - are you transferring your Zip debt to another platform or account that charges higher fees and higher interest?
- Credit file - are you behind on your payments? This could impact your credit rating.
- Overall debts - do you have a plan to manage your overall debts, or are you getting behind with multiple BNPL accounts? If it's the latter, sit down and review your overall position so you can make a plan to get into the black again.
Finder survey: Do Australians know what a balance transfer is?
Response | |
|---|---|
| Yes | 63.16% |
| No | 36.84% |
Source: Finder survey by Pure Profile of 1113 Australians, December 2023
What can I use Zip for?
Zip offers 2 payment options:
- Zip Pay is an interest-free buy now pay later service. It typically offers credit limits up to 1,000, with a monthly fee of $9.95 if you don't pay your spending off in full.
- Zip Money is a line of credit. It offers credit limits between $1,000 and $5,000 or higher if you apply through a specific merchant and meet the requirements. It also has a $9.95 monthly account fee and charges an establishment fee of up to $99 based on the credit limit.
You can use Zip's payment options anywhere Visa is accepted or at more than 40,000 partnered retail stores. You can also use Zip to pay your bills and buy gift cards, including for food, fuel and subscriptions.
While you can use Zip for everyday purchases, keep in mind that it's not a free service. It's a type of loan you'll have to pay back in increments.
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