You can send money with a credit card, but it costs more and works differently than a debit card or bank transfer
A credit card is not designed to move money from your account to someone else's. When you use a credit card to send money, you are borrowing from the card issuer, not spending money you already have. This means you pay interest on the transfer unless you clear the balance when ready, and you often pay a fee upfront as well. The person receiving the money gets it as a cash advance or a payment into their account, depending on the method you choose.
The main ways to send money with a credit card are: paying a bill directly to a person or business through a payment service, transferring money to a bank account using a cash advance, or using a money transfer app that accepts credit cards. Each method has different costs and speed. Most people use credit cards for this only when they have no other option, because the fees and interest make it expensive compared to a bank transfer or debit card payment.
Key Takeaways
- Credit card money transfers usually cost 3 to 5 percent of the amount, plus interest that starts accruing when ready if you do not pay the balance in full.
- A cash advance from an ATM or bank teller is the most direct way to send money with a credit card, but carries the highest fees and interest rates.
- Money transfer apps like PayPal, Venmo, and Square Cash accept credit cards but charge fees for credit card payments, while bank transfers from those apps are free.
- Paying a bill directly through your credit card company's website or a biller's payment portal avoids transfer fees but still costs interest if you carry a balance.
- The cheapest way to send money is always a bank transfer, debit card, or ACH payment — use a credit card only when those options are not available.
Cash advances: the most direct but most expensive method
A cash advance lets you withdraw money from your credit card at an ATM or bank teller, then give that cash to someone else. The credit card company charges you a fee — usually 3 to 5 percent of the amount withdrawn — and a higher interest rate than regular purchases, often 25 to 30 percent APR. Interest starts accruing the day you withdraw the money, with no grace period like you get on regular purchases.
For example, if you withdraw $500 as a cash advance, you might pay $15 to $25 in fees when ready, plus interest that compounds daily until you pay it back. This method is fast — you have the cash in minutes — but it is the most expensive way to send money with a credit card. Use it only if you need physical cash and have no other way to get it.
Money transfer apps and their credit card fees
Apps like PayPal, Venmo, Square Cash, and Google Pay let you send money to another person's account or phone number. Most of them accept credit cards, but they charge a fee when you fund a transfer with a credit card instead of a bank account. PayPal charges 2.2 percent plus $0.30 per transaction for credit card transfers. Venmo charges 3 percent for credit card payments. Square Cash charges 1.5 percent.
These fees are separate from any interest your credit card issuer charges. If you send $100 to someone through Venmo using a credit card, you pay $3 in Venmo's fee, then your credit card company charges interest on the full $103 if you do not pay the balance when ready. The same apps charge no fee if you link a bank account or debit card instead, so always use those methods if you have them.
Bill payment services and direct payments to businesses
You can pay a bill or send money directly to a business using your credit card through the biller's website, your credit card company's bill pay feature, or a third-party payment processor. This avoids the transfer fee that money transfer apps charge, because you are paying a bill rather than moving money between people.
However, you still pay interest on the credit card balance if you do not pay it off in full. Some billers also charge a convenience fee for credit card payments — utilities and government agencies sometimes add 2 to 3 percent to the bill if you pay by credit card. Check the biller's website before you pay to see if they charge this fee. If they do, a bank transfer or check is cheaper.
Balance transfers and their hidden costs
A balance transfer moves money from one credit card to another, or from a credit card to a bank account. The credit card company charges a balance transfer fee, usually 3 to 5 percent, and applies a different interest rate — often higher than your regular purchase rate. Balance transfers are meant to move debt between cards, not to send money to another person, but some people use them that way.
This is expensive and not recommended. If you transfer $1,000 from your credit card to a bank account, you pay $30 to $50 in fees plus interest on the full amount. A bank transfer or ACH payment from your checking account costs nothing and takes one to three business days. Use a balance transfer only if you are actually moving debt between credit cards to take advantage of a lower interest rate, not to send money to someone else.
When credit card money transfers make sense
Credit card money transfers are useful in specific situations: when you have no access to a bank account or debit card, when you need to build credit history and have no other way to make a purchase, or when you are in an emergency and have exhausted other options. They are also the only option if the person receiving the money will only accept a credit card payment.
In most other cases, a bank transfer, debit card payment, or ACH transfer is cheaper and faster. If you are considering a credit card transfer, first check whether the recipient accepts bank transfers, Venmo, PayPal, or other free payment methods. If they do, use those instead. If they do not, then compare the credit card fee to the cost of alternatives — sometimes a wire transfer or overnight check is cheaper than the interest and fees on a credit card transfer.
How to minimize costs if you must use a credit card
If you have to send money with a credit card, pay off the balance when ready to avoid interest charges. Interest on credit card transfers accrues daily and compounds, so every day you carry a balance costs you more. Set up an automatic payment or pay by hand the day after you make the transfer.
Choose the method with the lowest fee: paying a bill directly through the biller's website usually costs nothing in transfer fees, while money transfer apps charge 1.5 to 3 percent. Avoid cash advances unless you need physical cash. If you are sending money regularly, ask the recipient whether they can accept a cheaper payment method — most people can set up a bank account or read a free payment app.
Frequently Asked Questions
Can I send money directly from my credit card to someone's bank account?
Not directly. You can use a money transfer app like PayPal or Venmo to send money from your credit card to someone's account, but the app charges a fee (usually 2 to 3 percent) and you pay interest on the credit card balance. Some credit card companies offer their own transfer services, but these also charge fees and interest.
What is the difference between a credit card transfer and a debit card transfer?
A debit card transfer pulls money from your checking account that you already have, so you pay no interest and usually no fee. A credit card transfer borrows money from the card issuer, so you pay a fee and interest unless you pay the balance when ready. Debit transfers are always cheaper.
Will sending money with a credit card hurt my credit score?
It can, indirectly. If the transfer increases your credit utilization (the amount of your credit limit you are using), your score may drop temporarily. Paying off the balance quickly brings it back up. Cash advances and balance transfers sometimes have a bigger impact on your score than regular purchases because they are treated differently by credit scoring models.
How long does it take to send money with a credit card?
Cash advances are when ready — you have the money in minutes. Money transfer apps usually deliver funds within one to three business days, depending on the recipient's bank. Direct bill payments through a biller's website can take one to five business days. Check the app or website for the specific timeline before you send.
Is there a limit to how much I can send with a credit card?
Yes. Cash advances are usually limited to a percentage of your credit limit, often 20 to 50 percent. Money transfer apps have daily and monthly limits that vary by app and account age — new accounts often have lower limits. Check your credit card company's website and the money transfer app's terms to see your specific limits.