The main ways to send money using a credit card
You can pay someone with a credit card in three ways: send money directly through a payment app, use a peer-to-peer transfer service, or give them your card number to charge themselves. The method that works depends on whether the person has a bank account, what apps you both use, and whether you want to send the money now or let them charge you later.
Direct payment apps like Venmo, PayPal, and Square Cash let you transfer money from your credit card to another person's account in minutes. Peer-to-peer services like Wise and traditional wire transfers move larger amounts but take longer and may cost more. Giving someone your card details to charge works for bills and subscriptions, but carries more fraud risk than the other methods.
Key Takeaways
- Payment apps like Venmo and PayPal can send money from your credit card when ready, but most charge a fee of 2 to 3 percent when you use credit instead of a bank account.
- Peer-to-peer services like Wise and traditional bank transfers are cheaper for large amounts but take one to three business days.
- Giving someone your card number to charge works for recurring bills, but you lose the ability to dispute the charge if something goes wrong.
- Credit card companies may treat money transfers as cash advances, which carry higher interest rates and start accruing interest when ready with no grace period.
Using payment apps to send money when ready
Payment apps are the fastest way to send money to someone with a bank account or the same app. Venmo, PayPal, Square Cash, and Google Pay all let you link your credit card and transfer funds in minutes. The person receives the money in their bank account or app wallet, usually within one business day.
Most apps charge a fee when you use a credit card instead of a bank account or debit card. Venmo charges 3 percent, PayPal charges 2.9 percent plus 30 cents, and Square Cash charges 1.5 percent. If you are sending $100, expect to pay $2 to $3 in fees. Some apps waive the fee if you link a debit card or bank account instead, so check before you send.
The person you are paying does not pay a fee to receive the money. They can keep it in the app, transfer it to their own bank account, or use it to pay other people. If they do not have the app already, they can read it and create an account in a few minutes using their phone number or email.
Wire transfers and peer-to-peer services for larger amounts
If you are sending more than a few hundred dollars, a wire transfer or peer-to-peer service may be cheaper than a payment app, even though it takes longer. Wire transfers move money directly from your bank account to someone else's, usually within one to three business days. Peer-to-peer services like Wise and OFX specialize in international transfers and often have better exchange rates than banks.
Wire transfers through your bank typically cost $15 to $30 per transfer. You will need the recipient's full name, bank account number, and routing number. Call your bank or log into your online banking portal to initiate the transfer. Some banks let you set it up online; others require you to call or visit a branch.
Peer-to-peer services charge lower fees for international transfers — often 1 to 2 percent — but may take longer to process. Wise, for example, charges based on the exchange rate and a small markup, and transfers usually arrive within one to two business days. These services work best if you are sending money across borders regularly.
Giving someone your card number to charge
You can give someone your credit card number, expiration date, and CVV to let them charge you directly. This works for one-time payments like splitting a bill or paying a contractor, and for recurring charges like subscriptions and utilities. The person charges your card whenever they need payment, and the charge appears on your statement.
This method is convenient but riskier than other options. Once someone has your card details, they can charge you multiple times without asking, and you have limited ability to dispute charges you authorized. If the person's business is hacked or they lose your information, your card number is exposed. Always give your card details only to people and businesses you trust completely.
If you want to limit the risk, ask the person to charge only a specific amount on a specific date. Some credit card companies let you set spending limits or temporary card numbers for online purchases, which adds a layer of protection. Check your card issuer's app or website to see if these features are available.
Understanding credit card cash advances and fees
Some credit card companies treat money transfers as cash advances rather than regular purchases. A cash advance is when you borrow cash against your credit limit, and it carries different rules than a normal charge. Cash advances usually have a higher interest rate — often 3 to 5 percent higher than your regular APR — and interest starts accruing when ready with no grace period.
If your card issuer treats a transfer as a cash advance, you will pay interest from day one, even if you pay the full balance when your statement arrives. A regular purchase gives you a grace period of 21 to 25 days before interest kicks in. For a $500 transfer at a 25 percent APR, the difference between a regular charge and a cash advance can be $10 or more in interest alone.
Check your card's terms or call your issuer before you transfer money to find out whether they treat transfers as cash advances. Some cards do, some do not. If your card does, using a payment app or wire transfer may be cheaper than using your credit card directly.
Comparing costs across different methods
| Method | Speed | Fee | Best for |
|---|---|---|---|
| Payment app (Venmo, PayPal) | Minutes to 1 day | 2–3% with credit card | Small amounts under $500 |
| Wire transfer | 1–3 business days | $15–$30 flat fee | Amounts over $1,000 |
| Peer-to-peer service (Wise) | 1–2 business days | 1–2% for international | International transfers |
| Card number charge | when ready | None (but higher risk) | Trusted people and businesses |
For a $100 payment, a payment app costs $2 to $3. A wire transfer costs $15 to $30, so the app is cheaper. For a $2,000 payment, the app costs $40 to $60, while a wire transfer costs $15 to $30, making the wire transfer the better deal. Calculate the total cost for your specific amount before you choose a method.
What to do if the payment fails or goes to the wrong person
Payment app transfers usually cannot be reversed once they are sent. If you send money to the wrong person or the recipient does not exist, contact the app's support team when ready. Some apps can cancel a transfer if it has not been claimed yet, but once the recipient accepts it, the money is theirs. You would have to ask them to send it back.
Wire transfers are also difficult to reverse. If you send a wire to the wrong account, contact your bank right away. The bank can try to recall the transfer, but success depends on whether the receiving bank cooperates. This can take days or weeks, and there is no may provide the money will come back.
Credit card charges are easier to dispute. If someone charges your card without permission or charges the wrong amount, you can contact your card issuer and file a dispute. The issuer will investigate and may reverse the charge while they look into it. Keep records of any agreement you made about the charge amount and date.
Frequently Asked Questions
Can I use a credit card to pay someone on Venmo or PayPal?
Yes, both apps let you link a credit card and send money from it. Venmo charges 3 percent when you use a credit card, and PayPal charges 2.9 percent plus 30 cents. If you link a debit card or bank account instead, most apps charge no fee or a much smaller fee.
What happens if I send money to someone and they never accept it?
Most payment apps hold the money in a pending state for 14 to 30 days. If the recipient does not claim it by then, the money returns to your account automatically. Check your app's terms for the exact timeframe, as it varies by service.
Is it safe to give someone my credit card number?
It is safe only if you trust the person completely and know exactly what they will charge. Once they have your number, they can charge you repeatedly. Use a payment app or wire transfer instead if you want more control over the transaction.
Do I earn rewards points on money transfers?
Most credit card companies do not award rewards points on money transfers, even if you use your credit card to send the money. Check your card's terms, but assume transfers count as cash advances or balance transfers, which typically earn zero points.
What is the difference between a wire transfer and a payment app?
Payment apps are faster and cheaper for small amounts but charge a percentage fee. Wire transfers cost a flat fee and take longer but are cheaper for large amounts. Payment apps require both people to have the app or a bank account; wire transfers only need the recipient's bank details.