Credit card vs bank transfer for paying invoices

The difference is when the money leaves your bank account. A bank transfer takes it on the day you pay. A credit card lets the supplier get paid while the money stays in your account until you pay the card bill.

For a supplier that only takes bank transfers, the card route needs a bill payment service in the middle. So this comparison is between two routes: paying from your own account, or paying through a service that charges your card.

Side by side

Checked on 25 September 2026.

	Bank transfer from your account	Credit card through dozo
When the money leaves your bank account	The day you pay	When you pay your card bill. dozo charges your card when you pay, not on the payment-out date.
When the supplier gets paid	Faster Payments: usually almost at once, sometimes up to 2 hours. CHAPS: the same working day. Bacs: 3 working days.	On or after the payment-out date that you choose, once your card payment reaches dozo. The earliest date is 5 days after today, not counting bank holidays.
Payment limits	Faster Payments allows up to £1 million, but your bank sets its own limit	Your credit limit. dozo allows £1 to £20,000 per payment (at least £100 for a payment created from 26 October 2026), and £10,000 or £150,000 a month on each plan.
Cost	Your bank’s charges, if any	2.5% or 2.3% of each payment with a UK card, plus a plan from £29 a month. Card interest if you do not clear the balance.
Name check before payment	Confirmation of Payee at your bank	Confirmation of Payee by dozo before it pays
If you are tricked into paying a scammer	Reimbursement rules for Faster Payments and CHAPS, up to £85,000, for individuals, micro­enterprises and charities	Your card payment has card protections. Ask your card provider how they apply.

Speed

A bank transfer is the faster route. Faster Payments usually arrive almost at once, although some take up to two hours. CHAPS pays on the same working day. The Bank of England usually runs it from 6am to 6pm, Monday to Friday, except bank holidays. Customer payments must reach CHAPS by 5.40pm, so check your own bank’s cut-off time. Bacs takes three working days.

A card payment through dozo is slower. dozo pays the supplier on or after the payment-out date that you choose, once your card payment has reached dozo. The earliest date is 5 days after today, not counting bank holidays in England and Wales. For an invoice with a close due date, a bank transfer is the safer choice.

Cost

A bank transfer from your own account has no card fee. Check your business bank’s tariff for any charge on each payment.

With dozo, the card fee with a UK card is 2.5% on the £29 plan and 2.3% on the £79 plan. On a £5,000 invoice, that is £125 or £115. Your card is charged the invoice plus the fee, and the supplier gets the full £5,000. The plan costs £29 or £79 a month, or £290 or £790 a year.

The card route costs more on each invoice. It can still cost less than the alternatives. If you pay a business invoice late, the supplier can charge statutory interest at 8% a year plus the Bank of England base rate, unless your contract sets a different rate. An overdraft or a loan has its own cost too. Compare the card fee with the cost of that other option.

If you do not clear your card balance in full, the card provider also charges interest. Then the card route costs the fee plus that interest.

Limits

The Faster Payments scheme allows payments of up to £1 million. Your bank sets its own limit, which can be lower. CHAPS handles high-value payments on the same working day.

A card has a credit limit, which must cover the invoice plus the fee. Each dozo payment can be from £1 to £20,000. From 26 October 2026, each new payment must be at least £100. dozo also has a monthly limit for each plan: £10,000 of payments on the £29 plan, and £150,000 on the £79 plan.

Control and safety

Both routes pay the account details that you enter, so the same risk applies: the wrong account. Confirmation of Payee reduces that risk. It checks the name on the account before the money moves. For a business account, the name must be the registered business name or a trading name on the account.

• At your bank, you see the result before you send the payment. After a close match or no match, check the details with the supplier.
• At dozo, a close match or no match stops the payment. dozo pays only after a match, or after you accept that the name cannot be checked.

If a supplier sends new bank details by email, call the supplier on a number that you already have before you pay. This applies to both routes.

If you pay a scammer by bank transfer from your own account, the reimbursement rules from 7 October 2024 can help. They cover Faster Payments and CHAPS, for individuals, microenterprises and charities, up to £85,000. Card payments have their own protections. Through a bill payment service, your card payment goes to the service, so ask your card provider how its protections apply.

Which one to use

• Use a bank transfer if the cash is in your account, the invoice is due soon, or the amount is above your card or plan limit.
• Use a credit card if the invoice is due before your own customers pay you, and the fee costs less than the other ways to cover the gap.

For the step-by-step card route, read how to pay invoices with a credit card. For bills that you pay by Direct Debit, see credit card vs Direct Debit. For tax bills, read how to pay HMRC with a credit card.