You can send money with a credit card through money transfer services, but it usually costs more than other methods and comes with limits
Credit cards are not the fastest or cheapest way to move money to someone else. Most money transfer services — like Western Union, MoneyGram, or bank wire systems — do not accept credit cards directly. The ones that do charge a cash advance fee (usually 3 to 5 percent of the amount) plus interest that starts accruing when ready, since a cash advance is treated as a loan, not a purchase.
If you need to send money and a credit card is your only option, the real choices are: use a service that accepts credit cards as payment for a transfer, load money onto a prepaid card and send that, or use a peer-to-peer app that lets you link a credit card. Each path has different costs and speed. Understanding which one fits your situation means knowing what you are actually paying and how long the money takes to arrive.
Key Takeaways
- Money transfer services that accept credit cards charge both a transfer fee and a cash advance fee, making the total cost 5 to 10 percent or more of what you send.
- Peer-to-peer apps like PayPal, Venmo, and Cash App let you link a credit card but often charge a percentage fee (2 to 3 percent) for credit card transfers.
- Loading money onto a prepaid card first, then transferring it, avoids some fees but adds an extra step and may take longer overall.
- Bank wire transfers do not accept credit cards — you must use a checking or savings account, which is why credit card transfers cost more.
- If you are paying a bill or sending money to a business, paying directly with your credit card (not through a transfer service) is almost always cheaper.
Money transfer services that accept credit cards
Western Union and MoneyGram are the two largest services that will take a credit card to send money. Both let you send cash to a physical location (where the recipient picks it up) or directly to a bank account in some countries. The credit card itself is not sent — you are paying the service with your card, and they move the money.
The cost structure is: a transfer fee (which varies by amount and destination, typically $5 to $50) plus a cash advance fee from your credit card company (3 to 5 percent). So sending $500 might cost $25 in transfer fees plus $15 to $25 in cash advance fees — roughly $40 to $50 total, or 8 to 10 percent of the amount sent. That fee hits your credit card statement as a cash advance, which means interest starts accruing when ready at a higher rate than regular purchases.
Speed depends on the destination. Sending to a physical Western Union or MoneyGram location in the US usually takes minutes to a few hours. Sending to a bank account in the US takes 1 to 3 business days. International transfers take longer and cost more.
Peer-to-peer apps that link to credit cards
Apps like PayPal, Venmo, Cash App, and Square Cash let you link a credit card and send money to another person. The recipient usually gets the money in 1 to 3 business days (faster if they have an account with the same app). The fee for using a credit card is typically 2 to 3 percent of the amount, charged by the app itself — not a cash advance fee from your card company, which is why this is cheaper than Western Union.
The catch: these apps are designed for sending money between people you know, not for paying bills or sending to businesses. If you try to send to a business account or use it for a transaction that looks commercial, the app may freeze the transfer or close your account. Also, the recipient must have an account with the app or a linked bank account to receive the money — you cannot send to someone without one.
PayPal is the oldest and most widely accepted. Venmo and Cash App are faster for peer-to-peer transfers but have lower daily limits (usually $300 to $5,000 depending on your account age). Square Cash has similar limits and fees.
Prepaid cards and reloadable card transfers
Another route is to load money onto a prepaid or reloadable card using your credit card, then send that card number or transfer the balance to someone else. This avoids the cash advance fee because you are making a purchase (loading the card), not borrowing money.
The downside is that prepaid cards charge their own fees — usually $5 to $15 per month for the card itself, plus fees for loading money, checking balance, or transferring out. By the time you load money and then transfer it, you may have paid $10 to $20 in fees, which is comparable to or higher than using a peer-to-peer app. This method also takes longer because loading the card takes 1 to 3 business days, then the transfer takes another 1 to 3 days.
Prepaid cards make sense if you already have one and use it regularly. If you are opening one just to send money once, the setup fees usually outweigh the benefit.
When to use a credit card to send money, and when not to
Use a credit card to send money only if you have no other option. If you have a checking or savings account, a bank wire transfer or ACH transfer (which takes 1 to 3 business days) costs far less — usually $0 to $15 total, with no percentage fee. If you are paying a bill or a business, paying directly with your credit card (entering the card number on their website or over the phone) is almost always free and faster than any transfer service.
Credit card transfers make sense in a few specific situations: you need to send money to someone without a bank account, you are in a country where bank transfers are slow or unreliable, or you need the money to arrive in minutes (Western Union to a physical location). In those cases, the higher cost is worth it for speed or necessity.
If you are sending money regularly — to family, to pay rent, or to a business — set up a direct bank transfer or automatic payment instead. The cost difference over time is substantial. A $500 transfer via credit card costs $40 to $50; the same transfer via bank account costs $0 to $5.
Comparing the costs side by side
| Method | Typical Fee | Speed (US) | Best For |
|---|---|---|---|
| Western Union (credit card) | 8 to 10% of amount | Minutes to 3 days | Cash pickup, international, no bank account |
| PayPal (credit card) | 2 to 3% of amount | 1 to 3 days | Sending to someone with PayPal account |
| Venmo or Cash App (credit card) | 2 to 3% of amount | 1 to 3 days | Sending to someone with app account |
| Bank wire (checking account) | $0 to $30 | Same day to 1 day | Large amounts, businesses, speed |
| ACH transfer (checking account) | $0 to $5 | 1 to 3 days | Regular transfers, lowest cost |
What happens to your credit when you use a credit card to send money
A cash advance (which is what Western Union and MoneyGram treat a credit card transfer as) affects your credit in two ways. First, it counts as a hard inquiry and a new account or transaction, which may lower your credit score slightly in the short term. Second, the balance you owe on the cash advance is reported to credit bureaus, so your credit utilization (the percentage of your available credit you are using) goes up, which can lower your score further.
More importantly, cash advances charge interest when ready — there is no grace period like there is for regular purchases. If you send $500 via Western Union on your credit card and do not pay it off when ready, you will owe interest on that $500 at a rate that is usually 2 to 5 percentage points higher than your regular purchase APR. Over a few months, that interest adds up quickly.
Peer-to-peer apps and direct credit card payments do not trigger a cash advance, so they do not have this interest problem. You are charged a flat fee, not interest.
Frequently Asked Questions
Can I send money with a credit card if the person does not have a bank account?
Yes, but your options are limited. Western Union and MoneyGram let you send cash to a physical location where the recipient can pick it up without a bank account. Peer-to-peer apps require the recipient to have an account with that app. If the person has neither, Western Union or MoneyGram to a physical location is your only choice.
Is it cheaper to use a credit card or a debit card to send money?
Debit cards are usually cheaper. Most money transfer services charge the same transfer fee for both, but debit cards do not trigger a cash advance fee from your card company. If you have a debit card, use that instead of a credit card for any transfer service.
What is the difference between a cash advance and a regular credit card purchase?
A cash advance is treated as a loan that starts accruing interest when ready, with no grace period. A regular purchase has a grace period (usually 21 to 25 days) before interest kicks in. Cash advances also charge a separate fee (3 to 5 percent) on top of interest. This is why sending money via credit card costs so much more than other methods.
How long does it take to send money via credit card?
It depends on the service. Western Union to a physical location takes minutes to a few hours. Western Union or MoneyGram to a bank account takes 1 to 3 business days. Peer-to-peer apps like PayPal and Venmo take 1 to 3 business days. International transfers take longer, usually 3 to 7 business days.
Can I send money internationally with a credit card?
Yes, but the cost is higher. Western Union and MoneyGram both send internationally and accept credit cards, but international transfers charge higher fees (often $15 to $50 or more) plus the cash advance fee. If you are sending to someone with a bank account in another country, a service like Wise (formerly TransferWise) or OFX is usually cheaper, though they require a bank account, not a credit card.