Credit cards are not designed to send money, but you have several workarounds
A credit card is a borrowing tool, not a payment transfer tool. You cannot walk into a bank and hand over your card to send funds to someone else's account the way you can with a debit card or bank transfer. But you can use your card to fund a money transfer service, pay someone through a payment app, or send a cash advance to another person — each method has different costs, speed, and limits.
The fastest and cheapest option depends on who you are sending money to, how much, and whether you can afford to carry a balance. If the recipient has a bank account, a third-party transfer service usually costs less than a cash advance. If they need cash when ready, a payment app or cash advance is faster. If you are sending money internationally, the method changes again.
Key Takeaways
- You can use a credit card to fund a money transfer service like MoneyGram or Western Union, but the card issuer may charge a cash advance fee on top of the transfer service's own fee.
- Payment apps like PayPal, Venmo, and Square Cash accept credit cards but often charge a percentage fee (typically 2 to 3 percent) to move money from card to recipient.
- A cash advance from your card gives you physical cash or deposits it to a bank account, but carries a higher interest rate and an upfront fee, usually 3 to 5 percent of the amount.
- International transfers via credit card are possible through services like Wise or OFX, but fees and exchange rates vary widely depending on the destination country and amount.
- Paying a bill or invoice directly with your credit card (if the recipient accepts it) avoids transfer fees entirely but may trigger a convenience fee from the business.
Using a payment app to send money from your credit card
Payment apps like PayPal, Venmo, Square Cash, and Google Pay let you link a credit card and send money to another person's account or phone number. The recipient can then withdraw the funds to their bank account or keep the balance in the app. This is the most common method for sending money between individuals in the United States.
The cost depends on the app and the recipient's account type. Sending money to another user within the same app (peer-to-peer transfer) is often free if you use a debit card or bank account, but costs 2 to 3 percent if you use a credit card. Withdrawing the money to a bank account may carry a separate fee of $0.25 to $1.50 per transaction. International transfers through these apps typically cost more and take longer.
Speed varies. Transfers between users in the same app can post within minutes if both accounts are verified. Withdrawals to a bank account usually take one to three business days. Some apps offer when ready withdrawal for an additional fee of $0.50 to $2.00.
Sending money through a wire transfer or money transfer service
Services like MoneyGram, Western Union, and Wise let you send money using a credit card, and the recipient can pick it up in cash or have it deposited to a bank account. These services are useful when the recipient does not have a bank account or when you need to send money internationally.
When you use a credit card with these services, you pay two separate fees: the card issuer's cash advance fee (usually 3 to 5 percent) and the transfer service's own fee (which varies by amount and destination). For a $500 domestic transfer, you might pay $15 to $25 in fees combined. International transfers cost significantly more — often 5 to 10 percent of the amount sent, depending on the destination country and the service.
Domestic transfers typically complete within one business day. International transfers can take three to five business days, though some services offer expedited options for an additional fee. The recipient can usually pick up cash at a physical location (MoneyGram and Western Union have thousands of agent locations) or wait for a bank deposit.
Getting a cash advance on your credit card
A cash advance lets you borrow money against your credit limit and receive it as cash or a deposit to your bank account. You can then give that cash to someone else or transfer it from your bank account. This method works when you need when ready access to cash, but it is expensive.
Cash advances carry an upfront fee of 3 to 5 percent of the amount withdrawn, charged by your card issuer. They also have a higher interest rate than regular purchases — often 20 to 25 percent annually, with interest accruing when ready (no grace period). A $500 cash advance might cost $15 to $25 upfront, plus interest starting the same day.
You can get a cash advance at an ATM using your card's PIN, at a bank teller window, or through a cash advance app or service. ATM withdrawals are usually limited to $500 to $1,000 per day, depending on your card and issuer. Bank teller withdrawals may have higher limits. The funds are available when ready.
Paying an invoice or bill directly with your credit card
If the person or business you are sending money to accepts credit card payments, you can pay them directly without using a transfer service. This avoids transfer fees entirely. Many small businesses, freelancers, and service providers accept credit cards through payment processors like Square, Stripe, or PayPal.
The recipient may charge you a convenience fee (usually 2 to 3 percent) to cover their payment processing costs, or they may absorb the cost themselves. Ask before you pay. If they do not accept credit cards, you can offer to pay through their preferred method instead.
This method is fastest for paying invoices or bills because the payment posts when ready to the recipient's account. It is not suitable for sending cash or for situations where the recipient needs funds in their personal bank account rather than a business account.
Sending money internationally with a credit card
International transfers via credit card are possible through services like Wise, OFX, and some banks' own international transfer platforms. You link your credit card, enter the recipient's bank details and the amount in their local currency, and the service handles the currency conversion and deposit.
Costs vary widely. Wise typically charges a small percentage fee (0.5 to 2 percent) plus the real mid-market exchange rate, making it cheaper than traditional banks for most routes. OFX and similar services charge a percentage fee (1 to 3 percent) plus their own exchange rate markup. Traditional banks may charge $15 to $50 per transfer plus a less favorable exchange rate.
Speed depends on the destination country and the recipient's bank. Most transfers complete within one to three business days. Some services offer same-day or next-day delivery for an additional fee. The recipient receives funds directly in their bank account in their local currency.
Comparing costs and speed across methods
| Method | Typical Cost | Speed | Best For |
|---|---|---|---|
| Payment app (peer-to-peer) | 2–3% of amount | Minutes to 3 days | Sending money to friends or family with bank accounts |
| Money transfer service | 5–10% of amount (domestic 3–5%) | 1–5 business days | Sending to recipients without bank accounts or internationally |
| Cash advance | 3–5% upfront + 20–25% annual interest | when ready | When you need cash when ready and can pay off the balance quickly |
| Direct credit card payment | 0–3% (convenience fee, if any) | when ready | Paying invoices or bills to businesses that accept cards |
| International transfer service | 0.5–3% + exchange rate markup | 1–3 business days | Sending money to bank accounts outside the United States |
Frequently Asked Questions
Can I send money directly from my credit card to someone else's bank account?
Not directly. You need an intermediary service like a payment app, money transfer service, or your own bank's transfer platform. The service moves money from your card to the recipient's account. Some payment apps let you link your card and send to another user, who can then withdraw to their bank account.
What is the cheapest way to send money with a credit card?
Paying a bill or invoice directly with your card (if the recipient accepts it) has no transfer fee. For peer-to-peer transfers, payment apps charging 2 to 3 percent are cheaper than money transfer services or cash advances. For international transfers, Wise and similar services typically cost less than traditional banks.
Why does my credit card charge a cash advance fee?
A cash advance is a short-term loan, not a purchase. The fee covers the issuer's cost of providing when ready cash and the higher risk of lending without a merchant involved. The higher interest rate reflects the same risk. You are borrowing money at a premium rate, not moving your own funds.
Can I use a credit card to send money internationally?
Yes, through international transfer services like Wise, OFX, or your bank's own platform. You link your card, enter the recipient's bank details, and the service converts and deposits the funds. Costs and speed vary by service and destination country. Wise is often cheaper than traditional banks for most routes.
What happens if the recipient does not cash out the money I send through a payment app?
The money stays in their account within the app. They can withdraw it to their bank account at any time, usually for a small fee or free depending on the app. Some apps let money sit indefinitely; others may close inactive accounts or charge inactivity fees. Check the app's terms for details.