You can send money using a credit card, but it costs more and works differently than a debit card or bank transfer
A credit card cash advance or a money transfer are the two ways to send money with a credit card. Both treat the transaction as a loan from your card issuer rather than a withdrawal from your bank account. This means you pay interest when ready — usually a higher rate than your purchase APR — plus an upfront fee of 3% to 5% of the amount. You also start accruing interest right away, with no grace period like you get on purchases.
Most people use credit cards to send money only when they have no other option. A bank transfer, wire transfer, or peer-to-peer app like Venmo or PayPal is almost always cheaper and faster. But if you need to send money and your bank account is empty or frozen, or if you need to send it to someone abroad, a credit card can work.
Key Takeaways
- Credit card cash advances and money transfers both charge an upfront fee (usually 3% to 5%) plus interest that starts accruing when ready.
- The interest rate on a cash advance is typically higher than your regular purchase rate and has no grace period.
- You can get a cash advance at an ATM, bank branch, or through your card issuer's app or website.
- Money transfer services let you send funds directly to another person's bank account or card, but still charge the same fees and interest.
- A bank transfer, wire, or peer-to-peer payment app is cheaper and faster for most situations.
How a credit card cash advance works
A cash advance is when you borrow cash against your credit card limit. You can get one at an ATM using your card and PIN, at a bank branch by asking a teller, or through your card issuer's mobile app or website. The amount you withdraw counts as a loan, not a purchase, so interest starts accruing the same day.
Your card issuer charges a cash advance fee upfront — typically 3% to 5% of the amount withdrawn, with a minimum of $5 to $10. So if you withdraw $500, you might pay $15 to $25 just to get the cash. On top of that, the interest rate on a cash advance is usually 2% to 3% higher than your regular purchase APR. If your purchase rate is 18%, your cash advance rate might be 21% or 22%.
The interest clock starts when ready. Unlike a purchase, which has a grace period (usually 21 to 25 days before interest kicks in), a cash advance charges interest from day one. After one month, a $500 advance at 21% APR costs you roughly $8.75 in interest, on top of the $15 to $25 fee you already paid.
How credit card money transfers work
A money transfer is different from a cash advance. Instead of withdrawing cash, you send money directly to another person's bank account or card. You initiate the transfer through your card issuer's website or app, enter the recipient's bank details or card number, and the issuer sends the funds on your behalf.
Money transfers also charge an upfront fee (usually 3% to 5%) and interest that starts accruing when ready, just like a cash advance. The interest rate is often the same or slightly lower than a cash advance rate. The main difference is convenience — you do not have to visit an ATM or bank branch, and the recipient gets the money in their account rather than you holding cash.
Some card issuers offer money transfers only to certain countries or only to bank accounts, not to other credit cards. Check your card's terms or call the customer service number on the back of your card to see what options you have.
When to use a credit card to send money
Credit card cash advances and money transfers are expensive, so use them only when other methods are not available. You might consider a credit card if your bank account is overdrawn or frozen, if you need to send money internationally and your bank does not offer wire transfers, or if you are in a situation where you cannot access your bank account in time.
Even then, compare the total cost. A $500 cash advance with a 4% fee ($20) plus one month of interest at 21% APR (about $8.75) costs roughly $29. A wire transfer through your bank might cost $15 to $30 but has no interest. A peer-to-peer app like Venmo or PayPal is free for bank transfers but charges 1% to 3% for when ready transfers. Do the math before you commit.
If you use a credit card to send money, pay off the balance as fast as you can. Every day the balance sits, interest keeps accruing at a high rate. If you cannot pay it off within a month or two, the total cost will exceed what you would have paid with any other method.
How to get a cash advance at an ATM
Insert your credit card into an ATM just as you would a debit card. Select "Withdrawal" or "Cash Advance" (the exact wording varies by ATM). Enter the amount you want and your PIN. The ATM will dispense the cash and charge your credit card account.
Not all ATMs accept credit cards — most are set up for debit cards only. If the ATM rejects your card, try a different machine or visit a bank branch instead. Some card issuers charge an additional ATM fee on top of the cash advance fee, so check your card's terms first.
How to get a cash advance at a bank branch
Walk into any bank branch (not necessarily your own bank) and ask a teller for a cash advance on your credit card. Bring your card and a photo ID. The teller will process the transaction and give you cash. This method works even if you do not have a PIN set up for your card, and it often avoids the extra ATM fees that some issuers charge.
Bank branches are usually open during business hours only, so this method is slower than an ATM if you need cash outside those hours. But if you are already at a bank for another reason, asking for a cash advance takes just a few minutes.
How to send a money transfer through your card issuer
Log into your credit card account on your issuer's website or mobile app. Look for a section called "Transfers," "Send Money," or "Balance Transfers" — the exact name depends on your issuer. Select the option to send money to another person (not a balance transfer to another card, which is different).
Enter the recipient's name, bank account number, and routing number (or card number, depending on what your issuer accepts). Confirm the amount and review the fee and interest rate. Submit the transfer. Most issuers process the transfer within one to three business days, though some offer faster options for an extra fee.
Keep the confirmation number and receipt. If the money does not arrive or goes to the wrong account, you will need proof of what you sent and when.
Frequently Asked Questions
Does using a credit card to send money hurt my credit score?
A cash advance or money transfer does not directly hurt your score, but it increases your credit utilization (the amount of your available credit you are using). If you normally use 10% of your limit and take a $500 cash advance on a $5,000 limit, your utilization jumps to 20%. High utilization can lower your score slightly. Paying off the balance quickly brings it back down.
Can I send money to someone in another country using a credit card?
Some card issuers offer international money transfers, but not all. Call the number on the back of your card and ask whether your issuer supports transfers to the country you need. If not, a wire transfer through your bank or an international money transfer service like Wise or OFX may be cheaper and faster.
What is the difference between a cash advance and a balance transfer?
A cash advance is borrowing cash against your credit limit. A balance transfer is moving debt from one credit card to another. Balance transfers usually have a lower fee and interest rate than cash advances, but they only work if you have another card to transfer to. Cash advances let you get actual cash in hand.
Can I use a credit card to send money to PayPal or Venmo?
You can link a credit card to PayPal or Venmo and use it to send money, but PayPal and Venmo treat credit card payments as cash advances. They charge a 2% to 3% fee for credit card transfers (in addition to any fee PayPal or Venmo charges). Using a debit card or bank account is free or much cheaper.
How long does it take for the money to arrive?
A cash advance at an ATM or bank branch is when ready — you get the cash right away. A money transfer through your card issuer usually takes one to three business days. Some issuers offer expedited transfers that arrive the same day or next day, but these charge an extra fee.