You can transfer money with a credit card, but the method and cost depend on what you're trying to do
A credit card is not a bank account, so you cannot straightforward withdraw cash or send money the way you would from a checking account. But there are three real ways to move money using your credit card: a cash advance (getting cash from an ATM or bank), a balance transfer (moving debt from one card to another), or a third-party payment service (using apps or payment platforms that accept credit cards). Each one costs you differently and works for different situations.
The catch is that credit card companies charge fees and interest rates for moving money in ways that a debit card or bank transfer would not. A cash advance, for example, starts charging interest when ready — there is no grace period like there is for regular purchases. A balance transfer may have a lower interest rate but charges an upfront fee. Understanding which method fits your situation, and what it will actually cost, is the difference between a useful tool and an expensive mistake.
Key Takeaways
- Cash advances let you withdraw money from your credit card at an ATM or bank, but they charge a fee (usually 3 to 5 percent) plus a higher interest rate that starts right away.
- Balance transfers move debt from one credit card to another and may offer a lower interest rate for a set period, but they charge an upfront fee (typically 3 to 5 percent of the amount transferred).
- Payment apps and services let you send money to another person using your credit card, but the recipient may pay a fee or the money may arrive as a loan rather than a direct transfer.
- Credit card companies do not allow you to transfer money directly to a bank account the way you would with a wire transfer or ACH payment.
- The interest rate and fees for moving money with a credit card are almost always higher than using a bank account, debit card, or direct transfer method.
Cash advances: Getting money from an ATM or bank
A cash advance is the most straightforward way to get physical cash using your credit card. You go to an ATM that displays your card's logo (Visa, Mastercard, American Express, or Discover), insert your card, enter your PIN, and withdraw cash up to your credit limit. You can also walk into a bank branch and ask the teller for a cash advance, which works the same way.
The cost is when ready and steep. Most credit card companies charge a cash advance fee of 3 to 5 percent of the amount you withdraw — so a $500 cash advance costs $15 to $25 just to get the money out. On top of that, the interest rate on a cash advance is usually 2 to 3 percentage points higher than the rate on regular purchases, and it starts accruing the day you withdraw the money. There is no grace period. If your card's regular APR is 18 percent, your cash advance APR might be 21 percent, and you are paying interest from day one.
Use a cash advance only if you need physical cash and have no other way to get it. If you need to pay a bill or send money to someone, the other methods below are cheaper.
Balance transfers: Moving debt between credit cards
A balance transfer moves the balance you owe on one credit card to another card, usually one with a lower interest rate. Credit card companies often advertise balance transfer offers with a 0 percent APR for 6 to 21 months, depending on the card and the offer. This can save you hundreds of dollars in interest if you owe a large balance and can pay it down during the promotional period.
The upfront cost is a balance transfer fee, typically 3 to 5 percent of the amount transferred. A $5,000 balance transfer costs $150 to $250 in fees. The math still usually works in your favor if the new card's promotional rate is 0 percent and your old card's rate was 18 or 20 percent — you save far more in interest than you pay in fees. But if you transfer to a card with only a slightly lower rate and no promotional period, the fee eats into any savings.
Balance transfers are useful if you carry a balance on a high-interest card and want to buy time to pay it down at a lower rate. They are not useful for moving money to someone else or for getting cash.
Payment apps and services: Sending money to another person
Apps like PayPal, Venmo, Square Cash, and others let you link a credit card and send money to another person. The process is straightforward: you enter the recipient's name or phone number, the amount, and hit send. The money usually arrives within a few minutes to a few hours.
The catch is that most of these services charge a fee when you use a credit card — usually 2 to 3 percent of the amount sent. If you send $100 using a credit card, you pay $2 to $3 in fees. Some services let you send money free if you link a debit card or bank account instead, so the fee is really a cost of using credit. Also, the recipient receives the money as a transfer into their account, not as a loan — but you are still borrowing from your credit card company and will owe the full amount plus interest if you do not pay your bill in full.
These services are useful for splitting a bill with friends or sending money to family, but they are more expensive than a bank transfer or debit card payment would be. Use them when you do not have access to your bank account or debit card, not as your primary way to move money.
What you cannot do with a credit card
Credit card companies do not allow direct transfers to a bank account. You cannot tell your credit card issuer to send money to your checking account the way you would with a wire transfer or ACH payment. This is by design — credit cards are meant for borrowing, not for moving money you already have.
If you need to move money from a credit card to a bank account, a cash advance is the only direct method, and it is expensive. The alternative is to use the credit card to pay a bill or make a purchase that you would have paid for with the bank account anyway, which frees up money in your account — but this is not a transfer, it is a substitution.
When each method makes sense
Use a cash advance only if you need physical cash and have no other way to get it — for example, if you are traveling and your debit card does not work. The fees and interest are too high to use this method for routine money movement.
Use a balance transfer if you carry a balance on a high-interest card and can find a new card with a 0 percent promotional rate for at least 12 months. Calculate whether the balance transfer fee is worth the interest you will save. If you can pay off the balance during the promotional period, it usually is.
Use a payment app if you need to send money to another person and do not have access to your bank account or debit card. The 2 to 3 percent fee is cheaper than a cash advance but more expensive than a bank transfer. If you have a choice, use your bank account or debit card instead.
How to avoid expensive mistakes
The biggest mistake is using a credit card to move money when a cheaper method exists. Before you use any of these methods, ask yourself: Do I have a bank account, debit card, or direct transfer option available? If yes, use that instead. Credit card transfers are the expensive backup plan, not the first choice.
If you do use a credit card to move money, pay it off as soon as possible. Interest on a cash advance or payment app transfer starts when ready and compounds daily. The longer the money sits on your card, the more you owe. A $500 cash advance at 21 percent APR costs about $8.75 per month in interest alone — money that goes nowhere except to the credit card company.
Also, do not confuse moving money with borrowing money. When you use a cash advance or payment app, you are borrowing from your credit card company. You owe that money back, with interest and fees. This is different from moving money you already have, which is what a bank transfer does.
Frequently Asked Questions
Can I transfer money from my credit card to my bank account?
Not directly. The only way to move money from a credit card to a bank account is a cash advance — you withdraw cash and deposit it yourself. This costs a fee (3 to 5 percent) plus interest starting when ready. Most people use a cash advance only when they have no other option.
Is it cheaper to use a payment app or a cash advance?
A payment app is usually cheaper. Payment apps charge 2 to 3 percent, while cash advances charge 3 to 5 percent in fees plus a higher interest rate. But both are more expensive than a bank transfer or debit card payment, which usually cost nothing.
What happens if I do a balance transfer but do not pay it off during the promotional period?
The remaining balance switches to the card's regular APR, which is usually 15 to 25 percent. If you transfer $5,000 and pay off $3,000 during the 0 percent period, the remaining $2,000 starts accruing interest at the regular rate. Plan to pay off the full balance before the promotional period ends.
Can I use a credit card to pay someone directly without a payment app?
Only if the person accepts credit card payments directly — for example, a business with a card reader or an online payment form. You cannot send a credit card payment to an individual person the way you would with a bank transfer. Payment apps exist because credit cards are not designed for person-to-person transfers.
Does using a credit card to move money hurt my credit score?
A cash advance or balance transfer does not directly hurt your score, but it increases your credit utilization — the percentage of your available credit you are using. High utilization can lower your score temporarily. Paying it off quickly brings your score back up.