You can send money from a credit card, but it will cost you more than other methods
Yes, you can send money from a credit card to another person. The catch is that credit card companies treat it as a cash advance or a money transfer, not a regular purchase — and they charge you for it. You will pay an upfront fee (usually 3 to 5 percent of the amount), plus interest that starts accruing when ready, often at a higher rate than your regular purchase APR. For most situations, a bank transfer, PayPal, Venmo, or a wire transfer will cost you less or nothing.
The methods available depend on what you are trying to do: send money to someone you know, pay a bill, or move money into your own account. Each route has different fees and different speed. Understanding which one applies to your situation will save you money and frustration.
Key Takeaways
- Credit card cash advances and money transfers both charge an upfront fee (typically 3 to 5 percent) plus when ready interest, making them expensive for most situations.
- You can use a credit card to pay bills directly through the biller's website, which counts as a purchase and avoids cash advance fees — but some billers charge a convenience fee.
- Third-party apps like PayPal, Venmo, and Square Cash let you send money using a credit card, but they also charge a fee (usually 2 to 3 percent) unless you use a debit card or bank account.
- ATM cash withdrawals with a credit card are the most expensive option and should be avoided unless you have no other choice.
- If you need to move money between your own accounts, a bank transfer or wire transfer from a checking account will cost less than using a credit card.
Cash advances: the most expensive way to get money from your credit card
A cash advance is when you withdraw cash directly from your credit card at an ATM or bank teller. The credit card company charges you a fee upfront — usually 3 to 5 percent of the amount you withdraw, with a minimum fee of $5 to $10. That fee hits your account when ready.
On top of the fee, interest starts accruing right away. Unlike purchases, which often have a grace period before interest kicks in, cash advances charge interest from day one. The interest rate is usually higher than your purchase APR — often 2 to 5 percentage points higher. If your purchase rate is 18 percent, your cash advance rate might be 23 percent.
Example: You withdraw $500 from your credit card at an ATM. Your card charges a 5 percent fee ($25) and a 22 percent APR on cash advances. After one month, you owe $25 in fees plus roughly $9 in interest, for a total of $534. If you pay it off over three months, the interest alone could exceed $35.
Cash advances should be your last resort. They are the most expensive way to move money from a credit card.
Money transfers: similar fees to cash advances, but without the ATM trip
A money transfer is when you use your credit card to send money directly to another person's bank account, usually through your credit card company's website or app. It feels more direct than a cash advance, but the fees are similar.
Most credit card companies charge 3 to 5 percent of the transfer amount, with a minimum fee of around $5. Like cash advances, interest starts accruing when ready at your cash advance rate, not your purchase rate. Some cards do not allow money transfers at all, so check your card's terms first.
Money transfers are faster than cash advances — the recipient's bank usually receives the funds within one to three business days — but the cost is nearly identical. You are paying for speed and convenience, not for a better rate.
Paying bills directly with your credit card: no cash advance fee, but watch for convenience charges
If you need to send money to pay a bill — rent, utilities, medical bills, taxes — you can often pay directly through the biller's website or by phone using your credit card. This counts as a purchase, not a cash advance, so you avoid the cash advance fee and the when ready interest clock.
The catch: some billers charge a convenience fee for accepting credit card payments. Landlords, government agencies, and utility companies often charge 2 to 3 percent to cover their processing costs. A few do not charge anything. Before you pay, ask the biller whether they charge a convenience fee and how much it is.
If the convenience fee is low or zero, this is usually cheaper than a cash advance or money transfer. You will still pay interest if you carry a balance, but at least you avoid the upfront fee and the higher cash advance rate.
Third-party payment apps: moderate fees if you use a credit card
Apps like PayPal, Venmo, Square Cash, and Google Pay let you send money to friends and family. If you link a debit card or bank account, the transfer is free or costs very little. If you use a credit card, the app charges a fee — usually 2 to 3 percent — because the app company has to pay the credit card network's processing fee.
These apps are convenient for splitting bills or sending money to people you know, but they are not cheaper than a direct bank transfer. They also are not designed for paying large bills or sending large amounts of money regularly.
If you use one of these apps, link your debit card or bank account instead of your credit card. You will save the 2 to 3 percent fee and avoid the interest charges altogether.
Wire transfers and bank transfers: the cheapest option if you have a bank account
If you need to send a large amount of money or move money between your own accounts, a wire transfer or bank transfer from your checking account is almost always cheaper than using a credit card. Wire transfers through your bank usually cost $15 to $30 per transfer. Bank-to-bank transfers (sometimes called ACH transfers) are often free.
The downside: you need a checking account and a bank routing number for the recipient. Wire transfers are also irreversible — once the money leaves your bank, you cannot get it back if you made a mistake. But if you have the information and time, this is the cheapest route for large transfers.
If you do not have a checking account, opening one is usually free and takes less than an hour online. Most banks offer no-fee checking accounts for people with low balances.
When you might actually use a credit card to send money
Credit card transfers make sense in only a few situations. If you are in an emergency and need to send money to someone but have no other way to do it, a money transfer or cash advance is better than nothing. If you are paying a bill and the biller charges no convenience fee, using your credit card counts as a purchase and avoids the cash advance trap.
If you are trying to build credit or earn rewards points, paying a bill with your credit card (not a cash advance) can do both — but only if you pay off the balance in full at the end of the month. Paying interest to earn 1 percent cash back is a losing trade.
In almost every other situation, a bank transfer, debit card, or payment app linked to your bank account will cost you less.
Frequently Asked Questions
Can I send money from a credit card to a bank account?
Yes, through a money transfer service offered by your credit card company or through third-party apps like PayPal. Both charge a fee (3 to 5 percent for credit card company transfers, 2 to 3 percent for apps). The money usually arrives within one to three business days.
What is the difference between a cash advance and a money transfer?
A cash advance is cash you withdraw from an ATM or bank. A money transfer sends money directly to someone else's bank account. Both charge similar fees and interest rates, but a money transfer is faster and you do not have to handle physical cash.
Do I have to pay interest on a credit card money transfer?
Yes. Interest starts accruing when ready on money transfers and cash advances, unlike regular purchases which often have a grace period. The interest rate is usually higher than your purchase rate.
Is it cheaper to use PayPal or Venmo with a credit card?
PayPal and Venmo charge 2 to 3 percent when you use a credit card. If you link a debit card or bank account instead, the transfer is free or nearly free. Using a credit card through these apps is cheaper than a cash advance but more expensive than a bank transfer.
Can I avoid fees by using a rewards credit card?
No. The fees and interest rates on cash advances and money transfers are set by your card company and do not change based on the rewards program. Earning 1 to 2 percent cash back does not offset a 3 to 5 percent transfer fee plus interest.