Yes, but it costs money and works differently than a debit card
You can send money with a credit card, but the process is not straightforward and usually costs you a fee. A credit card is not designed to move money from your account to someone else's — it is designed to borrow money to pay merchants. When you try to send money with a credit card, you are either paying a service to convert your credit line into cash, or you are using a third-party app that treats the card as a payment method, not a bank account.
The key difference: when you send money with a debit card, you are moving money you already have. When you send money with a credit card, you are borrowing money and when ready owing it back, plus interest if you do not pay the full balance right away. This makes credit card money transfers expensive compared to other options.
Key Takeaways
- Credit card money transfers through your bank or a service like MoneyGram charge a fee (usually 3 to 5 percent) and treat the transfer as a cash advance, which starts accruing interest when ready.
- Payment apps like Venmo, PayPal, and Square Cash accept credit cards but charge a fee (typically 1.5 to 3 percent) to cover their processing costs.
- Sending money to someone's bank account directly costs less than sending cash, but requires their routing and account number.
- If you are trying to pay a bill or send money to a business, the business's own payment portal usually accepts credit cards with no extra fee.
- Using a credit card to send money costs more and creates debt faster than using a debit card, bank transfer, or cash.
Money transfer services that accept credit cards
Services like MoneyGram, Western Union, and Wise let you send money using a credit card, but they charge a fee for the convenience. MoneyGram and Western Union charge between 3 and 5 percent of the amount you send, depending on how fast you want the money to arrive and whether the recipient picks it up in cash or receives it in their bank account. Wise (formerly TransferWise) charges a smaller percentage for international transfers but is primarily designed for moving money between countries, not for domestic person-to-person payments.
When you use these services with a credit card, the transaction is classified as a cash advance. This means your credit card company charges you a cash advance fee (usually 3 to 5 percent of the amount) on top of the service fee, and the interest rate on that amount is often higher than your regular purchase rate. Interest starts accruing when ready — you do not get a grace period like you do with regular purchases.
Payment apps and what they charge
Apps like Venmo, PayPal, Square Cash, and Google Pay let you send money to friends and family using a credit card, but most charge a fee when you do. Venmo charges 1.5 percent of the amount you send if you use a credit card (it is free if you use a debit card or bank account). PayPal charges 2.2 percent plus $0.30 per transaction for credit card transfers. Square Cash and Google Pay do not charge a fee to send money between users, but if you are sending to a bank account, the fee structure changes.
These apps are convenient because you only need the recipient's username or phone number, not their bank details. However, the fee adds up quickly on larger amounts. If you are sending $100, a 1.5 percent fee costs you $1.50 on top of what your credit card company charges you in interest.
Bank-to-bank transfers and wire transfers
If you want to send money from a credit card to someone's bank account, your own bank can do this, but it is treated as a cash advance. You withdraw money against your credit line, and the bank transfers it to the recipient's account. This costs you a cash advance fee from your credit card company plus a wire transfer fee from your bank, which typically ranges from $15 to $30.
This is the most expensive option. A $500 transfer could cost you $25 to $50 in fees, plus interest on the $500 you borrowed. If you have access to a debit card or a bank account with funds in it, use that instead.
Paying bills and businesses directly
If you are trying to send money to a business — a utility company, an online retailer, a contractor — use their payment portal directly. Most businesses accept credit cards with no additional fee because they have already negotiated processing rates with their payment processor. You are not moving money; you are making a purchase or payment, which is what credit cards are designed for.
The same applies to paying rent, tuition, or other bills. Many landlords, schools, and service providers now accept credit card payments through their website or a third-party processor like Plastiq. Check the business's website first before using a money transfer service.
Why credit card transfers cost more than alternatives
Credit card companies charge more for money transfers because they consider it riskier than a regular purchase. When you buy something, the merchant has an incentive to deliver the goods or service. When you transfer money to another person, there is no merchant protection, so the credit card company charges you for that risk.
Additionally, a money transfer is classified as a cash advance, which means you are borrowing money at a higher interest rate and without a grace period. If you carry a balance, that interest compounds daily. A $500 transfer at 25 percent APR costs you about $3.13 per month in interest alone, before you pay down the principal.
When to use a credit card to send money
Use a credit card to send money only when you have no other option and the amount is small enough that the fee does not outweigh the benefit. For example, if you are traveling internationally and need to send money home but only have a credit card, Wise or a money transfer service is your option. If you are splitting a bill with friends and one person paid, Venmo with a credit card is faster than waiting to go to an ATM.
Do not use a credit card to send money if you are trying to pay off debt, cover an emergency, or send a large amount. In those cases, the fees and interest will make your situation worse. If you do not have a debit card or bank account, opening a basic checking account at a bank or credit union is cheaper than repeatedly paying credit card transfer fees.
Frequently Asked Questions
Does sending money with a credit card hurt my credit score?
It can, indirectly. A cash advance increases your credit utilization (the percentage of your credit limit you are using), which can lower your score temporarily. If you carry a balance and pay interest, that also signals higher risk to lenders. The score impact is usually small if you pay the balance off quickly, but it is another reason to avoid credit card transfers when possible.
Can I send money internationally with a credit card?
Yes, through services like Wise, MoneyGram, and Western Union. Wise is usually the cheapest for international transfers because it uses the real exchange rate and charges a flat fee rather than a percentage. However, you will still pay a cash advance fee from your credit card company on top of the service fee, making it more expensive than a bank wire or international transfer from a checking account.
What is the difference between a credit card transfer and a credit card cash advance?
They are the same thing. A money transfer using a credit card is classified as a cash advance by your credit card company. You are borrowing against your credit line, not moving money you already have. The fee, interest rate, and lack of grace period all explore.
Is it cheaper to use a credit card or a payment app to send money?
It depends on the amount and the app. Venmo charges 1.5 percent for credit cards; PayPal charges 2.2 percent plus $0.30. Both are cheaper than a bank wire (which costs $15 to $30) but more expensive than a debit card transfer (which is usually free). For amounts under $50, the fee difference is small. For amounts over $200, the percentage adds up quickly, so compare the fee to the cost of using a different method.
Can I use a credit card to send money to my own bank account?
Technically yes, but it makes no sense financially. You would pay a cash advance fee, an interest rate, and possibly a wire transfer fee to move money you already have access to. If you need cash, use an ATM with your debit card or withdraw from a teller. If you need to move money between your own accounts, use your bank's online transfer tool, which is free.