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—PayPal, Wise, Western Union, MoneyGram—accept credit cards as payment. However, your credit card company typically charges a cash advance fee (usually 3% to 5% of the amount) plus interest that starts accruing when ready, even if you normally pay your balance in full each month. The money reaches the recipient at the speed the service offers, which ranges from minutes to several business days depending on the method and destination.
If you need the money to arrive quickly and have no other payment method available, a credit card works. But if you have a bank account or debit card, using either one will cost less. The main exception is rewards: if your card offers cash back on money transfers and the reward exceeds the cash advance fee, the net cost may be lower than other methods.
Key Takeaways
- Credit card transfers trigger a cash advance fee (typically 3% to 5%) and interest charges that begin when ready, making them more expensive than bank transfers.
- Money transfer services that accept credit cards include PayPal, Wise, Western Union, MoneyGram, and Remitly, each with different fee structures and delivery speeds.
- Domestic transfers (within the US) usually arrive within one business day, while international transfers take 1 to 5 business days depending on the destination country.
- If your credit card offers cash back on money transfers, calculate whether the reward covers the cash advance fee before choosing this method.
How credit card cash advances work at money transfer services
When you use a credit card to send money through a service like PayPal or Western Union, the transaction is classified as a cash advance, not a purchase. This distinction matters because your credit card company charges you differently. A cash advance fee is a percentage of the amount sent (not a flat dollar amount), and interest accrues from the transaction date forward—there is no grace period like there is for regular purchases.
The money transfer service itself also charges a fee. For example, PayPal charges 2.2% plus $0.30 for domestic transfers and 3.49% plus $0.49 for international transfers when you use a credit card. Western Union charges a flat fee that depends on the amount and destination. These service fees are separate from what your credit card company charges.
The total cost is the sum of both: the service fee plus the credit card cash advance fee plus the interest your card charges. For a $500 domestic transfer via PayPal using a credit card, you might pay $11 (PayPal fee) plus $15 to $25 (card cash advance) plus daily interest. Using a bank account for the same transfer would cost only the $11 service fee.
Services that accept credit cards and their costs
| Service | Domestic Transfer Fee (Credit Card) | International Transfer Fee (Credit Card) | Speed |
|---|---|---|---|
| PayPal | 2.2% + $0.30 | 3.49% + $0.49 | 1 to 3 business days |
| Wise | 1.5% to 2% | 1.5% to 2% | 1 to 2 business days |
| Western Union | Flat fee, $5 to $50+ depending on amount | Flat fee, $10 to $100+ depending on amount and country | Minutes to 5 business days |
| MoneyGram | Flat fee, $5 to $50+ depending on amount | Flat fee, $10 to $100+ depending on amount and country | Minutes to 5 business days |
| Remitly | Not available for credit card | 2.99% + $0.99 (credit card) | 1 to 5 business days |
Fees and speeds vary by the specific transfer route and current promotions. Check the service's website for your exact destination before committing. Some services offer promotional periods with reduced or waived fees for new users.
When credit card transfers make sense
A credit card transfer makes sense in a few specific situations. If you have no bank account or debit card and need to send money urgently, a credit card is your option. If your credit card offers cash back on money transfers at a rate higher than the cash advance fee (for example, 5% cash back when the fee is 3%), the reward can offset the cost. If you are sending a small amount and the flat fee structure of Western Union or MoneyGram is lower than the percentage-based fee of PayPal, the credit card method might be cheaper.
The speed advantage is minimal: most services deliver domestic transfers within one business day regardless of payment method. International transfers take 1 to 5 business days depending on the destination country and the receiving bank's processing time, not the payment method you chose.
Alternatives that cost less
If you have a bank account or debit card, use it instead. Bank transfers through PayPal, Wise, or your own bank's wire service cost less because there is no cash advance fee and no interest charge. A bank transfer through your own bank costs nothing for domestic transfers and typically $15 to $50 for international wire transfers. PayPal charges 1.99% plus $0.99 for domestic transfers from a bank account, compared to 2.2% plus $0.30 from a credit card—a small difference, but it adds up.
For international transfers, Wise (formerly TransferWise) is often cheaper than credit card transfers because it uses the real exchange rate and charges only a small percentage fee. Remitly specializes in international transfers to specific countries and often undercuts both credit card and bank transfer costs for those routes.
Peer-to-peer apps like Venmo, Cash App, and Zelle are free for domestic transfers between individuals, though they have daily limits and are not designed for large amounts or business payments.
How to send money with a credit card step by step
- Choose a money transfer service that accepts credit cards (PayPal, Wise, Western Union, or MoneyGram).
- Create an account or log in if you already have one.
- Enter the recipient's name, location, and payment method (bank account, cash pickup, or mobile wallet, depending on the service).
- Enter the amount you want to send.
- Review the fee breakdown, which will show the service fee, the exchange rate (for international transfers), and the delivery timeframe.
- Select credit card as your payment method.
- Enter your credit card details and billing address.
- Confirm the transfer. The service will show you a confirmation number.
- The recipient will receive the money according to the stated timeframe (usually 1 to 3 business days for domestic, 1 to 5 for international).
Keep the confirmation number and receipt. If the transfer does not arrive within the stated timeframe, you will need it to contact the service's support team.
What to watch for
Check your credit card statement carefully. The transaction will appear as a cash advance, not a purchase, so it will not earn rewards points (if your card offers them for purchases). The interest rate for cash advances is usually higher than the purchase rate, and it starts accruing when ready. If you carry a balance on your credit card, the cash advance will be charged at the higher rate until it is paid off.
Some credit card companies restrict cash advances or charge additional fees beyond the standard cash advance fee. Call your card issuer before sending a large amount to confirm there are no surprises. A few cards block money transfer services entirely to prevent cash advance abuse.
Be cautious of scams. Legitimate money transfer services have official websites and apps. Do not send money through an unfamiliar service or one you found through an unsolicited email or text message.
Frequently Asked Questions
Can I send money when ready with a credit card?
Some services like Western Union and MoneyGram offer cash pickup within minutes, but the money does not reach a bank account when ready. PayPal and Wise typically take 1 to 3 business days for domestic transfers. International transfers take longer because they pass through multiple banks. The speed depends on the service and the delivery method you choose, not on whether you use a credit card.
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 (the percentage of your available credit you are using), which can lower your score temporarily. If you carry the cash advance balance and pay interest, the impact lasts longer. Paying it off when ready minimizes the effect.
What is the difference between a credit card cash advance and a regular purchase?
A cash advance charges a fee (3% to 5%) and interest from day one with no grace period. A purchase has no upfront fee and usually has a 21 to 25 day grace period before interest starts. Money transfer services classify credit card payments as cash advances, not purchases, so you pay more.
Can I send money to someone outside the US with a credit card?
Yes, most services accept credit cards for international transfers. Fees are higher for international transfers (typically 3% to 5% plus the credit card cash advance fee). Delivery takes 1 to 5 business days depending on the destination country and the receiving bank. Wise and Remitly often have lower rates for specific countries.
What happens if the recipient does not receive the money?
Contact the money transfer service with your confirmation number. They will investigate and either resend the money or refund it to your credit card. Refunds to a credit card typically take 5 to 10 business days. Keep your confirmation number and receipt until the money is confirmed received.