{"id":4608,"date":"2023-09-27T15:20:49","date_gmt":"2023-09-27T15:20:49","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=4608"},"modified":"2023-09-27T15:20:49","modified_gmt":"2023-09-27T15:20:49","slug":"reality-check-why-you-cant-use-credit-cards-for-stocks-investing","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/reality-check-why-you-cant-use-credit-cards-for-stocks-investing\/","title":{"rendered":"The Reality Check: Why You Can’t Use Credit Cards for Stocks Investing"},"content":{"rendered":"

\u201cIt\u2019s all about the risk and the return.\u201d<\/span><\/i><\/p>\n

Heard this often regarding the stock market? While many believe that the stock market is risky, unsafe, and unregulated, the truth is very different. <\/span>Every rupee invested in the stock market leaves a discernible trace right back to its origin.\u00a0<\/span><\/p>\n

In this blog, we’re set to unravel the myth that surrounds stock market safety and regulation. Join us on a journey of discovery as we shed light on the intricate workings that ensure transparency and accountability in every transaction. Let\u2019s dive in.<\/span><\/p>\n

How do you pay for the purchase of stocks?<\/strong><\/h2>\n

When you purchase stocks, the amount is debited from your trading account held with your broker.\u00a0<\/span><\/p>\n

But where does this amount come from?<\/span><\/i><\/p>\n

This is the amount that you add to your trading account when you top it up. But, when you top up your trading account, you would have noticed that you can only pay via UPI, Net Banking or a Bank transfer (in some cases).<\/span><\/p>\n

Why can I only top up my trading account using certain modes?<\/b><\/h2>\n

This is where the traceability comes into play! You can only add money to your trading account using a source which can be tracked back to you & your Bank account. This process is known as \u2018Third Party Verification\u2019, or TPV in simple terms.<\/span><\/p>\n

TPV is backed up by another authentication where the broker ensures that the Bank Account does indeed belong to you. Hence, payment modes linked to your Bank account, such as UPI, Net Banking or Bank transfer, are used to top up your trading account.<\/span><\/p>\n

Why can\u2019t I top up my trading account using a Credit Card or a wallet?<\/b>\u00a0<\/span><\/h2>\n

Credit Cards or wallets cannot be traced back to your Bank Account, hence, they do not fulfill the TPV criteria to top up your trading account.<\/span><\/p>\n

In addition, Credit Cards are a form of loans\/ credit, that cannot be used to purchase stocks since there is a chance that they may not be paid.<\/span><\/p>\n

How can I top up my PML Account?<\/b><\/h2>\n