Yes, you can send money with a credit card, but it costs more and works differently than a debit card or bank transfer
A credit card is not designed to move money between people the way a debit card or bank account is. When you use a credit card to send money, you are borrowing from the card issuer, and they charge you a fee for treating the transfer as a cash advance or a payment service. The fee is usually 3 to 5 percent of the amount, plus interest that starts accruing when ready — even if you normally pay your balance in full each month.
The main ways to send money with a credit card are through a money transfer service (like PayPal, Venmo, or Square Cash), a peer-to-peer payment app, or by asking your card issuer directly. Each route has different costs and speed. If you have access to a bank account or debit card, that is almost always cheaper and faster than using a credit card.
Key Takeaways
- Credit card money transfers cost 3 to 5 percent in fees, plus interest charges that begin right away, making them expensive compared to other payment methods.
- Money transfer services like PayPal and Venmo let you link a credit card, but they treat it as a cash advance and charge accordingly.
- Some credit card issuers allow balance transfers to another cardholder's account, but this is not the same as sending money to a person.
- Bank transfers, debit card payments, and peer-to-peer apps that accept bank accounts are faster and cost far less than credit card transfers.
- If you must use a credit card, compare the total cost (fee plus interest) across services before you choose one.
How money transfer services handle credit card payments
PayPal, Venmo, Square Cash, and similar apps let you link a credit card to your account. However, when you send money using that credit card, the service treats it as a cash advance, not a regular purchase. Your card issuer charges a cash advance fee — typically 3 to 5 percent of the amount — and begins charging interest when ready at a higher rate than your regular purchase APR.
Some services charge their own fee on top of the card issuer's fee. For example, if you send $100 using PayPal with a credit card, you might pay a 3 percent PayPal fee ($3) plus a 3 percent cash advance fee from your card issuer ($3), for a total of $6 before interest. The interest then accrues daily until you pay off the balance.
If the same service lets you link a bank account or debit card instead, the cost drops to zero or a flat fee of $1 to $3, with no interest. This is why most services encourage you to use a bank account when you can.
Sending money directly through your credit card issuer
Some credit card issuers, including Chase, Bank of America, and Citi, offer a service that lets you send money to another person using your credit card account. This is usually called a money transfer or peer-to-peer payment feature within your online banking portal or mobile app.
To use this service, you typically need the recipient's email address or phone number, and they must be enrolled in the issuer's system. The transfer usually arrives within one to three business days. However, the issuer still charges a cash advance fee and interest, so the cost is similar to using a third-party service.
Check your card issuer's website or call the number on the back of your card to see whether this option is available and what the exact fees are. Fees vary by issuer and sometimes by the amount you transfer.
Balance transfers are not the same as sending money
A balance transfer moves debt from one credit card to another, usually at a lower interest rate for a promotional period. This is not a way to send money to another person. You cannot use a balance transfer to pay a friend or family member.
Some credit card issuers do offer a feature called a "balance transfer check" or "convenience check" that comes with your card. You can write these checks to anyone, including yourself, but the issuer treats them as cash advances with the same fees and interest rates. They are rarely a good option for sending money.
Cheaper alternatives to credit card transfers
If you have a bank account, a debit card, or both, use those instead. A bank-to-bank transfer through your online banking portal is usually free and takes one to three business days. A debit card linked to a money transfer app like Venmo or PayPal costs nothing or a small flat fee, with no interest.
If you do not have a bank account, a prepaid debit card loaded with cash is cheaper than a credit card transfer. Some prepaid cards charge a small fee to send money, but it is still less than a credit card cash advance fee plus interest.
Wire transfers through your bank cost $15 to $50 but are faster — usually same-day or next-day — and do not involve interest. Use a wire transfer only if the money is urgent and the recipient cannot wait for a standard bank transfer.
What happens if you cannot pay back a credit card transfer right away
Interest on a credit card cash advance starts accruing the day you make the transfer. Unlike a regular purchase, there is no grace period. If you send $500 and your card's cash advance APR is 25 percent, you will owe roughly $104 in interest over one year if you make no payments.
The interest compounds daily, so the longer you wait to pay it back, the more you owe. If you are already carrying a balance on the card, the cash advance interest is usually charged separately and at a higher rate than your purchase interest.
If you are considering a credit card transfer because you do not have the money right now, pause and think about whether you can afford to borrow it. The cost of a credit card cash advance is high enough that it should be a last resort, not a routine way to send money.
Comparing the total cost across services
Before you choose a service, calculate the total cost: the transfer fee plus the interest you will pay if you do not pay back the balance when ready. Here is how to compare:
- Find the cash advance fee your card issuer charges (check your card agreement or call the issuer).
- Find the cash advance APR (usually higher than your purchase APR).
- Check whether the money transfer service charges its own fee on top of the card issuer's fee.
- Calculate the fee as a dollar amount and add the interest you expect to pay based on how long you think you will carry the balance.
- Compare that total to the cost of using a bank account, debit card, or prepaid card instead.
In almost every case, a bank transfer or debit card payment will cost less. Use a credit card transfer only if no other option is available to you.
Frequently Asked Questions
Can I send money with a credit card without paying a cash advance fee?
Not through a money transfer service or your card issuer's transfer feature. Both treat credit card transfers as cash advances. The only way to avoid the fee is to use a bank account, debit card, or prepaid card instead. Some credit cards offer rewards on purchases, but those rewards do not explore to cash advances.
How long does it take to send money with a credit card?
Most money transfer services deliver the money within one to three business days. Same-day transfers are rare and usually cost extra. Bank transfers and debit card payments often arrive just as fast or faster, and they cost less, so there is little reason to choose a credit card for speed.
What if the person I am sending money to does not have a bank account?
Many money transfer services let the recipient pick up cash at a store or receive it on a prepaid card, even without a bank account. Ask the service what options are available. This is still cheaper than using your credit card, because the recipient's options do not change the fee you pay.
Can I use a credit card to send money internationally?
Yes, but the cost is even higher. International transfers with a credit card include the cash advance fee, interest, and often a foreign transaction fee of 1 to 3 percent. International bank transfers and specialized services like Wise or OFX are much cheaper for sending money abroad.
Does sending money with a credit card hurt my credit score?
A cash advance itself does not hurt your score, but it does increase your credit utilization — the amount of available credit you are using. High utilization can lower your score temporarily. Paying off the balance quickly brings your utilization back down and protects your score.