You can send money with a credit card through money transfer services, but most charge fees and treat it as a cash advance
Sending money with a credit card is possible, but it works differently than using a debit card or bank account. Most money transfer services — including Western Union, MoneyGram, and Wise — let you fund a transfer with a credit card. However, your card issuer typically charges a cash advance fee (usually 3 to 5 percent of the amount) plus interest that starts accruing when ready, even if you pay your balance in full at month's end.
The money transfer service itself may also charge a separate fee for the transfer. This means sending $500 can cost you $30 to $50 or more before the recipient ever touches the money. For this reason, credit card transfers make sense only when speed matters more than cost, or when you have no other payment method available.
Key Takeaways
- Credit card transfers incur a cash advance fee from your card issuer (typically 3 to 5 percent) plus interest starting when ready, separate from the money transfer service fee.
- Money transfer services that accept credit cards include Western Union, MoneyGram, Wise, and PayPal, each with different fee structures and delivery speeds.
- Bank transfers and debit card transfers cost less and should be your first choice if the recipient can wait one to three business days.
- Some credit card issuers block cash advances or limit the amount you can transfer, so check your card's terms before attempting a transfer.
How credit card cash advances work with money transfer services
When you use a credit card to send money, your card issuer treats the transaction as a cash advance, not a regular purchase. This distinction matters because cash advances carry higher fees and interest rates than standard purchases. You pay the cash advance fee when ready (charged to your card), and interest begins accruing the same day — there is no grace period like there is for regular credit card purchases.
The money transfer service then charges its own fee on top of that. For example, Western Union charges a cash advance fee from your card issuer plus a transfer fee that depends on the amount and destination. Wise charges a conversion fee if you are sending internationally. PayPal charges a cash advance fee plus a transfer fee. These fees stack, so the total cost can be substantial for larger amounts.
Your credit card statement will show two separate charges: the cash advance fee and the transfer amount itself. The interest accrues on both. If you carry a balance, this interest compounds daily until you pay it off.
Which money transfer services accept credit cards
Not all money transfer services treat credit cards the same way. Some accept them readily; others restrict them or charge higher fees. Here is what you will encounter with the major services:
Western Union accepts credit cards online and in person at agent locations. You pay the cash advance fee from your card issuer plus Western Union's transfer fee, which varies by amount and destination. Domestic transfers can arrive within minutes to one business day.
MoneyGram accepts credit cards online and at agent locations. Fees are similar to Western Union — a cash advance fee plus MoneyGram's transfer fee. Delivery times range from minutes to one business day depending on the service level you choose.
Wise (formerly TransferWise) accepts credit cards but primarily for international transfers. You pay a conversion fee plus a small transfer fee. Wise is generally cheaper for international money than Western Union or MoneyGram, but the cash advance fee from your card issuer still applies.
PayPal allows credit card funding for transfers to other PayPal users or to a bank account. You pay a cash advance fee plus PayPal's transfer fee (which varies by transfer type). Transfers to PayPal accounts are usually when ready; transfers to bank accounts take one to three business days.
When a credit card transfer makes sense
Credit card transfers are expensive, so they should be your last resort, not your first choice. They make sense in specific situations: when you need money to reach someone urgently and have no bank account or debit card available, when you are in a location where cash is the only payment method accepted, or when you have a rewards credit card that earns points on cash advances (rare, but some cards do this).
They also make sense if you are sending a small amount — say, under $50 — where the percentage-based fee is lower in absolute dollars than a flat fee would be. A $20 cash advance fee on a $100 transfer is painful; a $20 fee on a $1,000 transfer is less painful proportionally.
Do not use a credit card transfer to avoid a bank transfer fee or to move money faster if you can wait one to three business days. The cost difference is too large. A bank transfer from your checking account to someone else's costs nothing or a flat $1 to $3 at most and takes one to three business days. A credit card transfer costs $30 to $50 or more on the same amount.
Cheaper alternatives to credit card transfers
Before you use a credit card, explore these lower-cost options:
Bank-to-bank transfer: If both you and the recipient have bank accounts, a wire transfer or ACH transfer costs $0 to $3 and takes one to three business days. This is the cheapest option for domestic transfers.
Debit card transfer: Money transfer services charge lower fees when you use a debit card instead of a credit card because there is no cash advance fee. You still pay the service fee, but you avoid the 3 to 5 percent cash advance charge and the interest.
Peer-to-peer payment apps: Venmo, Square Cash, and Zelle transfer money between individuals for free if both parties have accounts. These work best for splitting bills or sending money to friends and family, not for sending to strangers or businesses.
Check or money order: If the recipient can wait a week, a check costs only the price of postage. A money order costs $1 to $5 and arrives in three to five business days.
Fees and interest you will pay
Understanding the full cost before you transfer is essential. Here is what typically happens:
| Cost Component | Who Charges It | Typical Amount |
|---|---|---|
| Cash advance fee | Your credit card issuer | 3 to 5 percent of transfer amount |
| Cash advance interest | Your credit card issuer | Accrues daily from transfer date until paid off |
| Transfer fee | Money transfer service | $5 to $30 depending on amount and destination |
| Exchange fee (international only) | Money transfer service | 1 to 3 percent of amount |
Example: You send $500 domestically using Western Union with a credit card. Your card issuer charges a $20 cash advance fee (4 percent). Western Union charges a $15 transfer fee. Total cost: $35 plus interest on $520 until you pay it off. If you carry the balance for a month at 20 percent APR, you pay an additional $8.67 in interest. Total cost: $43.67 to send $500.
The same $500 sent via bank transfer costs $0 to $3 and takes one to three business days. The difference is substantial enough to make waiting worth it in most cases.
Limits and restrictions your card issuer may impose
Not every credit card allows cash advances, and not every card issuer treats them the same way. Check your card's terms before attempting a transfer.
Some card issuers set a cash advance limit separate from your credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Others block cash advances entirely for security reasons or to discourage high-fee transactions. A few cards charge a higher cash advance fee than others — some charge 5 percent, others charge 3 percent.
Your card issuer may also flag a large cash advance as suspicious activity and temporarily freeze your account. Call your issuer before making a large transfer to let them know it is coming. This prevents a delay while they investigate.
Frequently Asked Questions
Can I use a credit card to send money internationally?
Yes, services like Wise, Western Union, and MoneyGram accept credit cards for international transfers. You pay the cash advance fee from your card issuer plus the service's conversion and transfer fees. Wise is typically cheaper for international transfers than Western Union or MoneyGram, but the cash advance fee still applies.
Will sending money with a credit card hurt my credit score?
A cash advance itself does not directly hurt your score, but it increases your credit utilization ratio (the amount of credit you are using compared to your limit). High utilization can lower your score slightly. More importantly, if you carry the balance and miss payments, that will damage your score.
What if my credit card issuer blocks the cash advance?
Call your card issuer and ask why. They may have flagged it as suspicious, or your cash advance limit may be lower than the amount you are trying to transfer. Ask them to increase your cash advance limit or to approve the specific transaction. If they refuse, use a debit card or bank transfer instead.
How long does a credit card transfer take to arrive?
Domestic transfers via Western Union or MoneyGram can arrive within minutes to one business day. International transfers take one to five business days depending on the destination country and the service. Transfers to PayPal accounts are usually when ready; transfers to bank accounts take one to three business days.
Is it ever worth using a credit card to send money?
Only when speed is critical and you have no other payment method. For routine transfers, a bank transfer or debit card transfer costs far less. For urgent transfers, consider whether the recipient truly needs the money within hours or whether one to three business days would work.