The main ways to send money using a credit card

You can send money with a credit card through three routes: a money transfer service (like Western Union or MoneyGram), a peer-to-peer payment app (like PayPal or Venmo), or a bank transfer service that accepts credit card funding. Each route has different fees, speed, and limits. Most credit card companies do not let you transfer money directly to someone else's bank account the way you can with a debit card — you go through a middleman instead.

The catch is that most credit card issuers treat a money transfer as a cash advance, not a regular purchase. A cash advance charges you a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than your regular purchase rate, and interest starts accruing when ready with no grace period. Some payment apps and transfer services avoid this by treating the transaction as a purchase instead, which costs less if you pay the balance in full by your due date.

Key Takeaways

  • Money transfer services like Western Union and MoneyGram accept credit cards but charge both a transfer fee and treat the transaction as a cash advance, costing 5 to 10 percent of the amount you send.
  • Peer-to-peer payment apps like PayPal, Venmo, and Square Cash let you send money to contacts for free if you link a bank account, but charge 2 to 3 percent if you use a credit card.
  • Your credit card issuer may block credit card transfers or charge a cash advance fee even when the app or service does not, so check your cardholder agreement or call before sending.
  • If you need to send money internationally, Western Union and MoneyGram have the widest reach, but exchange rates and fees can run 8 to 15 percent of the total.

Money transfer services: Western Union and MoneyGram

Western Union and MoneyGram are the oldest and most widely available options. You can walk into a physical location (grocery stores, pharmacies, check-cashing shops) or use their websites and apps. Both accept credit cards, but both treat the transaction as a cash advance. You pay a transfer fee upfront (ranging from $5 to $50 depending on the amount and destination) plus the cash advance fee from your card issuer.

The recipient does not need a bank account — they can pick up cash at any Western Union or MoneyGram location, or in some cases have the money deposited to their bank account. Transfers within the United States typically arrive within minutes to a few hours. International transfers take longer and cost more because of currency conversion and compliance checks.

Use Western Union or MoneyGram if you are sending to someone without a bank account, sending internationally to a country where these services have wide coverage, or need the money to arrive the same day. Avoid them if you want to minimize fees, because the combination of transfer fee plus cash advance fee usually runs 5 to 10 percent of the amount sent.

Peer-to-peer payment apps: PayPal, Venmo, and others

PayPal, Venmo, Square Cash, and similar apps let you send money to anyone with an email address or phone number. If you link a bank account, transfers are free and arrive within one to three business days. If you use a credit card instead, the app charges you a fee (usually 2 to 3 percent) to cover their processing costs.

The key difference from Western Union is that most payment apps treat a credit card transfer as a purchase, not a cash advance, if the app itself is charging the fee. That means you avoid the cash advance fee from your card issuer and you get the grace period on the purchase — you pay no interest if you pay your full balance by your due date. However, your card issuer can still block the transaction or reclassify it as a cash advance if their terms prohibit credit card transfers to payment apps.

PayPal and Venmo have the largest user bases in the United States. Square Cash (now called Cash App) is popular but has lower daily and monthly limits. All three require the recipient to have a bank account or debit card to withdraw the money, though they can hold it in the app temporarily. International transfers through these apps are limited or unavailable.

Bank-to-bank transfers and bill pay services

Some banks let you set up a transfer to another person's bank account through their bill pay or transfer service, and they accept credit cards as the funding source. This is less common than it used to be, but it is worth checking with your bank. If your bank offers it, the transaction is usually treated as a purchase rather than a cash advance.

Services like Wise (formerly TransferWise) specialize in international transfers and accept credit cards. They use real exchange rates and charge a flat fee plus a small percentage, which is usually cheaper than Western Union for large amounts going to certain countries. Transfers take one to four business days depending on the destination.

How to avoid cash advance fees and high interest rates

The biggest cost of sending money with a credit card is the cash advance fee and interest. To minimize this, link a bank account to a payment app instead of using your credit card. If you must use a credit card, choose an app that treats the transaction as a purchase (PayPal and Venmo do this) and pay your full balance by your due date so you avoid interest.

Before you send, call your credit card issuer or check your cardholder agreement to confirm they do not block transfers to payment apps or money transfer services. Some cards restrict these transactions entirely. If your card does allow it, ask whether the transaction will be classified as a cash advance or a purchase — the answer determines whether you pay interest when ready or only if you carry a balance.

For large amounts, compare the total cost across services. A $500 transfer might cost $15 through a payment app (3 percent fee, no cash advance fee if you pay in full) but $35 through Western Union (transfer fee plus 5 percent cash advance fee). The payment app is cheaper even though it has a percentage fee, because you avoid the cash advance interest.

Limits and timing: what to expect

Payment apps have daily and monthly limits that vary by service and how long you have used the app. Venmo's limit is typically $300 per transaction and $2,000 per week for newer users, rising to $20,000 per week after you have been verified. PayPal's limits are higher and depend on your account history. Western Union and MoneyGram have higher limits but charge more per transaction.

Timing also varies. A payment app transfer to a linked bank account takes one to three business days. A Western Union or MoneyGram transfer can arrive in minutes if the recipient picks up cash, or in one to three business days if it goes to a bank account. International transfers take longer — usually three to five business days even with expedited options.

If you are sending money for an urgent need, confirm the timing with the service before you send. A payment app is fastest for domestic transfers to bank accounts, but Western Union is faster if the recipient needs cash when ready and can pick it up in person.

International transfers: costs and options

Sending money internationally with a credit card is expensive because of exchange rates, compliance fees, and the involvement of multiple banks. Western Union and MoneyGram are available in most countries but charge high fees — often 8 to 15 percent of the amount for smaller transfers. Wise is cheaper for larger amounts (usually $500 or more) because it uses real exchange rates and charges a flat fee plus a small percentage.

PayPal and Venmo offer international transfers in some countries, but availability is limited and fees are higher than domestic transfers. Check the specific country before you assume a service works there.

For regular international transfers, consider opening a bank account with a bank that has branches in both countries, or ask your bank about their wire transfer rates. A wire transfer costs $15 to $50 per transaction but may be cheaper than a percentage-based fee for large amounts.

Frequently Asked Questions

Will my credit card issuer charge me a cash advance fee if I use PayPal or Venmo?

Not if PayPal or Venmo treats the transaction as a purchase, which they do. However, your card issuer can still block the transaction or reclassify it as a cash advance if their terms prohibit credit card transfers to payment apps. Call your issuer before you send to confirm they allow it.

Can I send money to someone who does not have a bank account?

Yes, through Western Union or MoneyGram. The recipient can pick up cash at a physical location without a bank account. Payment apps require the recipient to have a bank account or debit card to withdraw the money, though they can hold it in the app temporarily.

What is the cheapest way to send $100 with a credit card?

Link your credit card to PayPal or Venmo and send to someone with a bank account. The fee is 2 to 3 percent ($2 to $3), and if you pay your full balance by your due date, you pay no interest. Western Union or MoneyGram would cost $10 to $15 for the same amount because of the transfer fee plus cash advance fee.

How long does an international transfer take?

Three to five business days is typical for most services, including Western Union, MoneyGram, and Wise. Some services offer expedited options that arrive in one to two business days but charge extra. Payment apps like PayPal have limited international coverage and may take longer.

Can I send money to a credit card instead of a bank account?

Most services do not support this. Payment apps and bank transfers go to bank accounts. Western Union and MoneyGram can deposit to a bank account or deliver cash, but not to a credit card. If someone asks you to send money to their credit card, they are likely asking you to use a service like Plastiq that specializes in bill payments, not personal transfers.