The Main Ways to Send Money Using a Credit Card
You can pay a person with a credit card in three ways: send money directly through a payment app, use a cash advance to withdraw funds and hand them over, or ask the person to process your card as payment themselves. The first method — a payment app — is fastest and safest. The second costs you a fee and interest. The third works only if the other person has a card reader or merchant account.
Most people use payment apps because they're free, when ready, and don't require the other person to own any special equipment. You both need a smartphone and a linked bank account or debit card. Credit cards themselves don't work directly in most payment apps — you'll need to link your debit card or bank account instead. If you want to use your credit card specifically, a cash advance is your only option, but it's expensive.
Key Takeaways
- Payment apps like Venmo, PayPal, and Cash App let you send money when ready to another person's phone number or email, and most are free if you link a debit card or bank account.
- Credit cards don't connect directly to most payment apps — you'll need to add your debit card or bank account to send money.
- A credit card cash advance lets you withdraw money and pay someone in person, but you'll pay an upfront fee (usually 3–5% of the amount) plus interest starting when ready.
- If someone wants to charge your credit card as payment, they need a merchant account or card reader, which is common for small businesses but rare for individuals.
- Payment apps are the cheapest and fastest option for most person-to-person payments.
Using a Payment App (Fastest and Cheapest)
Payment apps are the standard way to send money to another person. The most common ones are Venmo, PayPal, Cash App, and Zelle. All of them work the same way: you create an account, link your debit card or bank account, and send money to the other person using their phone number, email, or username. The money usually arrives within minutes.
To send money through a payment app, open the app, select "Send" or "Pay," enter the other person's contact information, type the amount, and confirm. The app will ask you which payment method to use — choose your debit card or bank account, not your credit card. Most apps don't let you link a credit card at all. If yours does, the app may charge you a fee (usually 2–3%) for using a credit card instead of a debit card or bank account.
Payment apps are free when you use a debit card or bank account. Some apps charge a small fee if you want the money to arrive faster (within an hour instead of one to three business days), but standard transfers cost nothing. This makes them much cheaper than a credit card cash advance.
Getting a Credit Card Cash Advance to Pay Someone
A cash advance is when you withdraw money directly from your credit card at an ATM or bank. You can then hand the cash to the person you owe. This works, but it's expensive and should be your last choice.
When you take a cash advance, your credit card company charges you an upfront fee — usually 3% to 5% of the amount you withdraw. If you withdraw $200, you might pay $6 to $10 just to get the cash. On top of that, the credit card company charges you interest on the cash advance when ready, often at a higher rate than your regular purchase APR. Interest starts accruing the day you withdraw the money, not at the end of the billing cycle like it does for regular purchases.
To take a cash advance, go to an ATM that accepts your credit card, insert the card, select "Cash Advance" or "Withdraw Cash," enter the amount, and complete the transaction. Some banks also let you request a cash advance at the teller window. Check your credit card statement or call the number on the back of your card to find out your cash advance limit — it's usually lower than your overall credit limit.
Asking Someone to Charge Your Credit Card Directly
If the person you're paying is a business or has a merchant account, they can charge your credit card directly using a card reader or payment terminal. This is common for small businesses, freelancers, and contractors who accept card payments. You straightforward hand over your card or read the number aloud, and they process the payment on their device.
For this to work, the other person needs either a physical card reader (a small device that plugs into a phone or tablet) or access to a payment processor like Square, Stripe, or PayPal's merchant services. Most individuals don't have these set up. If someone asks you to pay by card and they don't have a reader, suggest a payment app instead — it's easier for both of you.
When someone charges your credit card directly, the transaction appears on your statement just like any other purchase. You'll earn rewards points if your card offers them, and you won't pay any extra fees beyond what the merchant charges (which is their cost, not yours).
Comparing Your Options
| Method | Cost | Speed | What You Need |
|---|---|---|---|
| Payment app (debit card or bank account) | Free | Minutes to 1–3 days | Smartphone, debit card or bank account, recipient's phone number or email |
| Payment app (credit card) | 2–3% fee | Minutes to 1–3 days | Smartphone, credit card, recipient's phone number or email |
| Credit card cash advance | 3–5% fee plus interest | when ready (at ATM) | Credit card, ATM access, cash to hand over |
| Direct card charge | Free (no extra fee) | when ready | Credit card, recipient with card reader or merchant account |
What Happens If You Don't Have a Debit Card
If you only have a credit card and no debit card or bank account, a cash advance is your main option for paying someone in person. Some payment apps will let you link a credit card, but they'll charge you a 2–3% fee for the privilege. Over time, this adds up — if you regularly send money this way, you're paying hundreds of dollars a year in fees.
A better long-term solution is to open a basic checking account at a bank or credit union. Most checking accounts are free, and once you have one, you can link it to a payment app and send money for free. This takes about 15 minutes to set up online and saves you money on every transaction you make.
Frequently Asked Questions
Can I use my credit card directly in Venmo, PayPal, or Cash App?
Most payment apps don't let you link a credit card at all. If they do, they charge a 2–3% fee to use it. It's cheaper to link your debit card or bank account instead, which is free. Check the app's settings to see what payment methods it accepts.
How long does it take for money to arrive through a payment app?
Standard transfers usually arrive within 1–3 business days. Most apps offer a faster option (money arrives within an hour) for a small fee, usually $0.50 to $2. Check the app before you send to see which speed you're getting.
What's the difference between a credit card cash advance and a regular ATM withdrawal?
A regular ATM withdrawal uses money you already have in your bank account. A cash advance borrows money from your credit card company and charges you a fee plus interest. Only use a cash advance if you have no other way to get cash.
Do I earn credit card rewards on payments made through a payment app?
No. When you link a debit card to a payment app, the transaction doesn't go through your credit card, so you don't earn rewards. If you link your credit card directly (and the app allows it), you may earn rewards, but you'll pay a 2–3% fee that wipes out most of the benefit.
What if the person I'm paying doesn't have a smartphone?
If they don't have a smartphone, a payment app won't work. Your options are a cash advance (withdraw cash and hand it over), a direct card charge (if they have a card reader), or a bank transfer (if you both have bank accounts and can do it online or at a branch).