Yes, but it costs more and works differently than a debit card or bank transfer
You can send money from a credit card, but the method depends on what the card issuer allows and what the recipient needs. Most credit cards do not let you transfer money directly to another person's bank account the way a debit card does. Instead, you typically use a third-party service — a money transfer app, wire service, or cash advance — and you pay a fee each time. The fee is usually a percentage of the amount sent, a flat dollar amount, or both.
The reason credit cards work this way is that a credit card is a line of borrowed money, not your own funds. When you send money from a credit card, you are borrowing from the card issuer and then paying interest on that borrowed amount until you pay the bill. This makes it more expensive than moving money from your checking account.
If you need to send money regularly or in large amounts, a credit card is rarely the cheapest option. But if you have no other way to send funds quickly, or if you want to earn rewards on the transaction, it may be worth the cost.
Key Takeaways
- Credit cards do not transfer money directly to bank accounts; you must use a third-party service like PayPal, Venmo, or a wire transfer company.
- Every method charges a fee — usually 2% to 5% of the amount sent, plus possible flat fees — and you pay interest on the borrowed amount until you pay your card bill.
- Cash advances from a credit card carry the highest fees and interest rates, often 3% to 5% upfront plus daily interest starting when ready.
- Rewards earned on the transaction may offset some fees if your card offers cash back or points on purchases, but rarely all of them.
- For regular money transfers, a bank account or peer-to-peer app funded by debit card is almost always cheaper than using a credit card.
The three main ways to send money from a credit card
Money transfer apps like PayPal, Venmo, Square Cash, and Google Pay let you link a credit card and send money to another person's email, phone number, or username. The recipient can then transfer the funds to their own bank account. Fees range from 1.75% to 3% of the amount sent, depending on the app and whether the recipient is in the US or abroad. Some apps charge a flat fee instead — typically $0.25 to $2 — for domestic transfers.
Wire transfer services like Western Union and MoneyGram accept credit cards and send money to a recipient who picks it up in cash or deposits it to a bank account. These services charge higher fees, often 3% to 5% of the amount, plus a flat fee of $5 to $15. Wire transfers are faster than apps — usually within minutes to hours — but cost more.
Cash advances let you withdraw cash from your credit card at an ATM or bank teller. This is the most expensive option. Most card issuers charge an upfront fee of 3% to 5% of the amount withdrawn, and interest accrues on the cash from the day you withdraw it — there is no grace period like there is for purchases. If you withdraw $500 and your card charges 4% upfront plus 24% annual interest, you owe $20 when ready plus roughly $10 per month in interest until you pay it back.
What fees and interest you will pay
The total cost of sending money from a credit card includes the transfer fee, the interest on the borrowed amount, and sometimes a foreign transaction fee if the recipient is outside the US.
A money transfer app charging 2.5% on a $200 transfer costs $5 upfront. If you pay your credit card bill in full the next month, that is your only cost. But if you carry the $200 balance, you also pay interest — typically 18% to 25% annually — which adds roughly $3 to $4 per month until the balance is gone.
A cash advance is worse. The same $200 withdrawal costs $8 to $10 upfront (4% to 5%), plus interest starting when ready at a rate that is often 2% to 3% higher than your purchase APR. Over three months, you could pay $20 to $25 in fees and interest combined.
If your credit card offers cash back or rewards points on purchases, you may earn 1% to 2% back on the transfer amount. This offsets some of the fee but rarely all of it. A 2% cash back reward on a $200 transfer nets you $4, but the 2.5% transfer fee costs $5, leaving you $1 in the hole before interest.
When sending money from a credit card makes sense
Use a credit card to send money only when you have no other option or when the rewards offset most of the fee. This happens in a few situations.
If you do not have a bank account or debit card, a credit card and money transfer app may be your fastest way to send funds. If you are building credit and want to use the transaction to add to your credit history, a small transfer on a rewards card can help — though the fee cost usually outweighs the benefit.
If you need to send money internationally and your credit card offers no foreign transaction fees, a money transfer app funded by credit card may be cheaper than a wire service. Check the app's international rate first; some charge 3% to 4% for cross-border transfers, while others charge 5% or more.
If you are in an emergency and have no cash or access to your bank account, a cash advance is available when ready. The cost is high, but sometimes speed matters more than price.
How to choose the cheapest method
Before you send money from a credit card, compare the total cost across three options: the app or service fee, the interest you will pay if you carry the balance, and any rewards you will earn.
For a one-time transfer under $500, use a money transfer app with a flat fee rather than a percentage fee. A $0.25 flat fee on a $100 transfer costs far less than 2.5% ($2.50). For larger amounts, a percentage-based fee is usually cheaper.
If you can pay the credit card bill in full the month you make the transfer, the interest cost is zero, and the only expense is the transfer fee. This is the only scenario where a credit card transfer is reasonably priced.
If you cannot pay the balance in full, calculate the monthly interest cost and add it to the transfer fee. For a $500 transfer at 2.5% fee plus 20% annual interest, you pay $12.50 upfront plus roughly $8.33 per month in interest. Over three months, the total cost is $37.50 — roughly 7.5% of the amount sent. At that point, a wire service at a flat $10 fee might be cheaper.
Alternatives that cost less
If you have a bank account, transfer money from your checking account instead. Most banks offer free transfers to other accounts, and peer-to-peer apps like Venmo and PayPal are free when you fund them with a debit card or bank account. The only cost is the time it takes — usually one to three business days.
If you need the money to arrive faster, use a debit card with a money transfer app. The fee is the same as with a credit card, but you avoid interest charges because you are spending your own money, not borrowed money.
If you are sending money to someone in the same bank, an internal transfer is free and when ready. If you are sending to a different bank, an ACH transfer (automated clearing house) is free and takes one to three business days.
Frequently Asked Questions
Can I transfer money from my credit card directly to someone else's bank account?
No. Credit cards do not connect directly to bank accounts the way debit cards do. You must use a third-party service like PayPal, Venmo, or a wire transfer company. The service receives the money from your credit card and then deposits it into the recipient's account.
What is the difference between a money transfer app and a cash advance?
A money transfer app sends money to another person's account or email; a cash advance gives you physical cash from an ATM. Cash advances charge higher fees (3% to 5% upfront) and interest starts when ready. Money transfer apps charge lower fees (1.75% to 3%) and interest only accrues if you carry the balance on your credit card.
Will I earn rewards on a money transfer from my credit card?
Some cards do, some do not. Check your card's terms or call the issuer. Even if you earn 1% to 2% cash back, the transfer fee usually costs more than the reward. A 2% reward on a $200 transfer earns $4, but a 2.5% fee costs $5.
How long does it take to send money from a credit card?
Money transfer apps take one to three business days for the recipient to receive funds in their bank account. Wire services and cash pickups are faster — usually within hours. The speed depends on the service and the recipient's bank, not the credit card itself.
What happens if I cannot pay my credit card bill after sending money?
You will owe interest on the transferred amount at your card's APR, usually 18% to 25% annually. The interest accrues daily until you pay the balance. If you miss a payment, you may also face a late fee and a higher penalty APR.