The main ways to send money using a credit card
You can pay someone with a credit card through a few distinct routes, each with different costs and speed. The method that works depends on whether the person has a payment app, whether you need the money to arrive when ready, and whether you are willing to pay a fee.
The fastest and cheapest option is usually a payment app like Venmo, PayPal, or Cash App, where you link your credit card and send money directly to the recipient's account. A middle option is a money transfer service like Western Union or MoneyGram, which works even if the recipient does not have a smartphone. The slowest and most expensive option is a cash advance, where you withdraw cash from an ATM using your credit card and hand it over — this triggers interest charges when ready and often includes an upfront fee.
Each method has trade-offs around speed, cost, and who can receive the money. Understanding those trade-offs helps you pick the right one for the situation.
Key Takeaways
- Payment apps like Venmo and PayPal are free when you link a credit card, though some apps charge a small percentage fee depending on the app and your account type.
- Money transfer services like Western Union and MoneyGram let you send cash to someone without a bank account or app, but charge a flat fee or percentage that varies by amount and destination.
- Credit card cash advances carry an when ready interest charge and an upfront fee, making them the most expensive way to send money.
- Some credit cards block payment app transfers or charge a higher fee for them, so check your card's terms before linking it to Venmo or PayPal.
- The recipient's access to the money depends on the method — payment apps require a smartphone and account, while cash pickup locations work for anyone with ID.
Payment apps: the fastest route for people with smartphones
Payment apps like Venmo, PayPal, Cash App, and Zelle let you send money to someone's phone number or email address in minutes. You link your credit card to the app, enter the recipient's contact information, and the money moves to their account. Most apps show the transaction publicly by default (though you can change that), and the recipient can then withdraw the money to their bank account or spend it within the app.
Fees vary by app and by how you pay. Venmo and PayPal charge no fee when you link a debit card or bank account, but charge around 3% when you use a credit card. Cash App charges 1.5% plus 5 cents for credit card transfers. Zelle is free if both you and the recipient have accounts at participating banks, but Zelle does not accept credit cards — you must link a bank account or debit card. Check your specific credit card's terms, because some cards treat payment app transfers as cash advances and charge a fee or higher interest rate.
The main limitation is that the recipient must have a smartphone and an account with the same app. If they do not, you will need to use a different method.
Money transfer services: sending cash to someone without an app
Western Union, MoneyGram, and similar services let you send money to a physical location where the recipient can pick it up with a photo ID. You do not need to know their bank account number, and they do not need a smartphone or app. You can pay with a credit card online or in person at a store, and the money is usually ready for pickup within minutes to a few hours.
Fees depend on the amount and the destination. A typical domestic transfer of $100 costs $5 to $10, while larger amounts or international transfers cost more. Some services charge a flat fee, others a percentage of the amount sent. Check the fee before you complete the transfer, because it is not always obvious until the final step.
The recipient picks up the money at a Western Union or MoneyGram location using the reference number you receive and a photo ID. This works well for people without bank accounts or apps, but requires them to travel to a pickup location during business hours. International transfers take longer — typically one to three business days — and carry higher fees.
Credit card cash advances: the most expensive option
A cash advance lets you withdraw cash from an ATM using your credit card, then hand it to someone directly. This is the slowest and most expensive way to send money, because your credit card company charges an upfront fee (usually 3% to 5% of the amount) and begins charging interest when ready — often at a higher rate than your regular purchase APR.
For example, a $500 cash advance might cost $15 to $25 upfront, plus interest starting the day you withdraw it. If you carry the balance for a month at a 25% APR, you would pay roughly $10 in interest on top of the fee. By contrast, a $500 Venmo transfer costs nothing if you link a debit card, or $15 if you use a credit card.
Cash advances make sense only when the other methods are not available — for instance, if the recipient has no bank account, no smartphone, and no access to a money transfer location. In almost every other situation, a payment app or money transfer service is cheaper and faster.
What happens if your credit card blocks payment app transfers
Some credit card issuers classify payment app transfers as cash advances and charge a fee or higher interest rate. Others block them entirely. You can find out by checking your card's terms or by attempting a small transfer and seeing what happens.
If your card blocks or charges extra for payment app transfers, your options are to link a debit card or bank account to the app instead, use a different payment app that your card does not restrict, or use a money transfer service. Linking a bank account is usually free and avoids the cash advance fee, so that is often the easiest workaround.
Sending money internationally with a credit card
International transfers are slower and more expensive than domestic ones. Payment apps like PayPal and Wise (formerly TransferWise) support international transfers, but charge a percentage fee that varies by destination country — typically 1% to 4% plus a flat fee. Western Union and MoneyGram also work internationally, with fees that scale with the amount and the receiving country.
The recipient receives the money in their local currency, and the exchange rate applied depends on the service. Wise is often cheaper for large transfers because it uses the real mid-market exchange rate, while Western Union and MoneyGram mark up the rate. For small amounts, the difference may not matter much, but for transfers over $1,000, comparing the total cost across services is worth the time.
How to avoid fees when sending money
The cheapest way to send money is to link a bank account or debit card to a payment app, which is free on most platforms. If you must use a credit card, Venmo and PayPal charge around 3%, while Cash App charges 1.5% plus 5 cents. Money transfer services charge a flat fee or percentage that varies by amount — for small transfers under $100, the fee is often $5 to $10.
If you have a choice of payment method, ask the recipient which app they use, then link your bank account or debit card instead of your credit card. If you have no bank account, check whether your credit card issuer offers fee-free transfers to certain apps, or whether a money transfer service has a lower fee than the payment app's credit card rate.
Frequently Asked Questions
Can I send money with a credit card if the person does not have a bank account?
Yes, through money transfer services like Western Union or MoneyGram, where they pick up cash at a physical location. Payment apps require a bank account or debit card to receive money, so they do not work for unbanked recipients. A cash advance also works, but costs more in fees and interest.
How long does it take for money to arrive when I use a payment app?
Most payment apps transfer money to the recipient's account within minutes to a few hours. Withdrawing that money to their bank account takes one to three business days, depending on their bank. International transfers through payment apps take longer — typically one to three business days.
What is the difference between Venmo and PayPal for sending money?
Both charge around 3% when you link a credit card, and both are free when you link a bank account or debit card. Venmo shows transactions publicly by default (though you can hide them), while PayPal is private. PayPal works in more countries for international transfers. Choose based on which app the recipient already uses.
Will sending money through a payment app hurt my credit score?
No. Payment app transfers do not appear on your credit report and do not affect your credit score. They are treated as regular purchases or transfers, not as debt or credit inquiries.
Is it safe to send money with a credit card through a payment app?
Payment apps use encryption and fraud protection similar to banks. The main risk is sending money to the wrong person by mistake — most apps let you cancel a transfer within a few minutes, but after that the money is in the recipient's account. Double-check the recipient's name or phone number before you confirm the transfer.