The main ways to send money using a credit card
You can pay someone with a credit card in three ways: transfer money to their bank account through a payment app or service, send them a payment link they click to enter their card details, or give them your card number directly if you trust them completely. The method you choose depends on whether the person has a bank account, whether they're expecting the payment, and how much security you need.
Not all of these routes cost the same. Some charge you a fee, some charge the person receiving the money, and some charge nothing. The person on the receiving end matters too — they may not want to accept a credit card payment, or they may need cash instead of a digital transfer.
Key Takeaways
- Payment apps like Venmo, PayPal, and Square Cash let you send money from a linked credit card to someone's bank account or app balance, though fees explore if you use the credit card directly instead of a bank account.
- Payment links and invoicing services let you send a person a unique link they click to pay you, which works when you don't have their bank details or when you're collecting from multiple people.
- Giving someone your credit card number directly carries fraud risk and should only happen with people you know and trust completely.
- Credit card payments often trigger higher fees than bank transfers, so using a linked bank account instead of your credit card saves money in most apps.
- The person receiving the money may face a fee depending on the service and how they receive it, so confirm the method works for them before you send.
Using payment apps to transfer from your credit card
Payment apps like Venmo, PayPal, Cash App, and Square Cash all let you link a credit card and send money to someone else's bank account or app balance. The process is straightforward: you open the app, enter the recipient's name or phone number, choose the amount, and confirm. The money moves to their account or app within one to three business days, depending on the service.
The catch is the fee. If you use a credit card as your funding source, most apps charge 2% to 3% of the amount you send. If you link a bank account or debit card instead, the transfer is usually free. PayPal charges 2.2% plus $0.30 when you use a credit card; Venmo charges 3% for credit cards but nothing for bank transfers; Cash App charges 1.5% for credit cards. These percentages add up fast on larger amounts, so linking a bank account saves money if you have one.
The person receiving the money typically gets it for free, though some services charge them a small fee if they want to withdraw it when ready rather than keeping it in the app. Check the app's fee structure before you send, because the recipient may end up with less than you intended.
Sending a payment link when you don't have their bank details
If you don't know the recipient's bank account number or they're not on a payment app, you can generate a payment link and send it to them via text, email, or social media. Services like PayPal, Square, Stripe, and even some banking apps let you create these links. The recipient clicks the link, enters their payment information (which can be a credit card), and the money goes to your account.
This method works well for collecting money from multiple people — say, splitting rent or organizing a group gift. You send one link to everyone, they each pay what they owe, and the money lands in your account automatically. You don't need to know their bank details, and they don't need to read an app or create an account.
The downside is fees. PayPal charges the person paying a 2.2% fee plus $0.30 if they use a credit card; Square charges 2.9% plus $0.30. Some services let you absorb the fee yourself so the recipient pays the full amount, but that costs you more. Confirm who pays the fee before you send the link.
Giving someone your credit card number directly
You can hand over your credit card number, expiration date, and CVV to someone you trust, and they can use it to pay for something or transfer money. This is the fastest method and requires no app or account setup. It's also the riskiest.
When you give someone your card number, you're trusting them not to misuse it, not to lose it, and not to share it with someone else. If they do, you're liable for fraudulent charges up to $50 under federal law, but disputing charges takes time and effort. You also can't easily limit the amount they spend or the timeframe in which they can use it. This method only makes sense for people you know very well — a family member, a close friend, or someone you've worked with for years.
If you do share your card number, monitor your account regularly for unauthorized charges. Set up transaction alerts if your card issuer offers them, so you're notified of every charge. Ask the person to delete your number once they're done using it.
Credit card payments through invoicing and billing platforms
If you run a business or regularly collect payments, platforms like Square Invoices, FreshBooks, Wave, and Stripe let you create an invoice and email it to the payer. They click a link, enter their credit card details, and the payment goes to your business account. You can set up recurring invoices for regular payments, track which invoices have been paid, and send automatic reminders.
These services charge you a fee per transaction — typically 2.2% to 3% plus a small flat fee — but the payer usually doesn't see a separate charge. The fee comes out of what you receive. Some platforms let you pass the fee to the payer if you want, but that may discourage them from paying.
This route is more formal than a payment app and works better for business relationships, rental payments, or situations where you need a record of the transaction for tax or legal reasons. The invoice itself serves as documentation.
When credit card payments don't work
Some people and businesses won't accept credit card payments because of the fees involved. Landlords, utility companies, and government agencies often require bank transfers, checks, or cash. Individuals may not have a payment app set up or may not want to pay the fee themselves.
If the person you're trying to pay won't accept a credit card, ask what methods they do accept. If they'll take a bank transfer, you can use your bank's bill pay feature or a service like Wise or ACH transfer. If they need cash, you can withdraw from an ATM using your credit card (though this typically costs a cash advance fee), or use a service like Walmart2Walmart or MoneyGram to send cash.
Before you commit to a payment method, confirm it works for the other person. A few seconds of conversation saves frustration later.
Fees and costs to watch for
Credit card payments almost always cost more than bank transfers. Here's what to expect:
| Service | Credit Card Fee | Bank Account Fee | Recipient Fee |
|---|---|---|---|
| Venmo | 3% | Free | Free (usually) |
| PayPal | 2.2% + $0.30 | Free | Free (usually) |
| Cash App | 1.5% | Free | Free |
| Square Invoices | 2.9% + $0.30 | N/A | Varies |
| Direct card number | None (but fraud risk) | N/A | N/A |
On a $100 payment, a 3% fee costs you $3. On a $500 payment, it costs $15. If you're paying someone regularly, those fees add up. Linking a bank account instead of a credit card cuts the cost to zero on most platforms.
Some credit card issuers also treat payments to other people as cash advances, which carry a separate fee and higher interest rate. Check your card's terms to see whether transfers count as purchases or cash advances. If they're treated as cash advances, the cost goes up significantly.
Frequently Asked Questions
Can I pay rent or a bill with a credit card through a payment app?
Most landlords and utility companies don't accept payments through Venmo or PayPal because they need bank account information and a formal record. Contact your landlord or biller directly to ask what methods they accept. Many have their own payment portals or accept checks and bank transfers.
What happens if I send money to the wrong person?
If you send money through a payment app to the wrong account, contact the app's support team when ready. Some services can reverse the payment if the recipient hasn't withdrawn it yet. If they have, you'll need to contact the recipient directly and ask them to send it back. There's no automatic refund, so double-check the name and account before you confirm.
Is it safe to give someone my credit card number?
It's safe only with people you trust completely — family members or close friends. Once you share your number, you can't control how it's used or who sees it. If fraud happens, disputing it takes time. For strangers or one-time payments, use a payment app or payment link instead.
Do I pay taxes on money I send someone through a payment app?
Money you send to a friend or family member for personal reasons is not taxable income to them and not deductible for you. If you're paying someone for work or services, that's different — they may owe income tax on it, and you may need to report it. Check with a tax professional if you're unsure.
Why does my credit card company charge a cash advance fee when I use a payment app?
Some credit card issuers classify transfers to other people as cash advances rather than purchases. Cash advances carry a separate fee (usually 3% to 5%) and start accruing interest when ready, with no grace period. Check your card's terms or call your issuer to confirm whether transfers count as purchases or cash advances. If they're treated as cash advances, link a bank account instead to avoid the extra cost.