You can send money from a credit card, but it usually costs more than other payment methods
A credit card is not designed to move money to another person or account the way a debit card or bank transfer does. When you try to send money with a credit card, you are either making a purchase at a business, transferring a balance to another card, or taking a cash advance. Each route has different costs and rules.
The most common way people send money from a credit card is through a third-party service like PayPal, Venmo, or Square Cash. These apps let you link your card and send funds to another person's account. However, most charge a fee if you pay with a credit card instead of a bank account—typically 2% to 3% of the amount. A direct bank transfer costs nothing.
If you need to move money to your own bank account, a cash advance is an option, but it is expensive. You pay an upfront fee (usually 3% to 5% of the amount) plus a higher interest rate than regular purchases, starting when ready with no grace period.
Key Takeaways
- Sending money through payment apps like PayPal or Venmo costs 2% to 3% when you use a credit card, but costs nothing if you link a bank account instead.
- A cash advance from your credit card charges an upfront fee of 3% to 5% plus interest that starts accruing right away, making it one of the most expensive ways to access cash.
- Balance transfers let you move debt from one card to another, sometimes with a lower interest rate, but they also charge an upfront fee of 3% to 5%.
- Paying a bill or making a purchase with your credit card is free, but it is not the same as sending money to another person.
Sending money to another person through payment apps
Payment apps are the easiest way to send money from a credit card to someone else. Apps like PayPal, Venmo, Square Cash, and Google Pay all let you link your card and transfer funds to another user's account or their bank account.
The catch is the fee structure. If you link a bank account or debit card, the transfer is free. If you use a credit card, the app charges you a fee—usually 2% to 3% of the amount sent. Some apps waive the fee for small transfers or for users who have been members for a certain time, so check the app's current fee schedule before you send.
The receiving person gets the money in their account within one to three business days, depending on the app and their bank. If they also use the same app, the money may arrive when ready to their app balance, though they still need to transfer it to their bank account to use it.
Taking a cash advance from your credit card
A cash advance lets you withdraw cash directly from your credit card at an ATM or from a bank teller. This is useful if you need physical cash, but it is one of the most expensive credit card transactions you can make.
You pay three costs at once: an upfront fee (usually 3% to 5% of the amount withdrawn), a higher interest rate than your regular purchase rate (often 20% to 25%), and interest starts accruing when ready—there is no grace period like there is for purchases. If you withdraw $500, you might pay $15 to $25 in fees alone, plus interest from day one.
The amount you can withdraw is limited by your credit limit and your card's cash advance limit, which is often lower than your full credit limit. Check your card's terms or call the issuer to find out your cash advance limit before you go to the ATM.
Transferring a balance to another credit card
A balance transfer moves debt from one credit card to another. This is not the same as sending money to another person—it is moving your own debt. However, it can be useful if you want to move a high-interest balance to a card with a lower rate.
Balance transfers charge an upfront fee, usually 3% to 5% of the amount transferred. Some cards offer a 0% introductory rate on balance transfers for a set period (often 6 to 18 months), which can save you money on interest if you pay down the balance during that time. After the introductory period ends, the regular interest rate applies.
You initiate a balance transfer by contacting the new card issuer directly. They handle the transfer from your old card. The process usually takes 5 to 14 business days. During that time, you should keep making payments on your old card to avoid late fees.
Paying a bill or making a purchase with your credit card
If you need to pay someone for a service or product, using your credit card directly is free. There is no fee to the cardholder when you swipe or enter your card number at checkout. The merchant may pay a processing fee to their payment processor, but that does not affect you.
This works for online purchases, in-store transactions, and bills paid over the phone or through a biller's website. Some billers (like utility companies or government agencies) charge a convenience fee if you pay with a credit card instead of a bank account, so ask before you pay.
Using your card for purchases builds your credit history and may earn you rewards points or cash back, depending on your card's benefits. This is the intended use of a credit card and carries no extra cost.
Wire transfers and other bank-to-bank options
If you want to send money from your credit card to someone else's bank account, you cannot do it directly. Credit cards do not connect to the wire transfer system. Your options are to use a payment app (which charges a fee) or to take a cash advance and deposit it into your bank account, then wire it from there (which costs even more in fees).
The cheapest way to send money is through your own bank account using a wire transfer, ACH transfer, or bill pay service. These are free or cost only a few dollars and take one to three business days. If you do not have a bank account, a prepaid debit card or a service like Western Union can move money, but these also charge fees.
Comparing the costs of each method
| Method | Fee | Interest | Speed |
|---|---|---|---|
| Payment app (credit card) | 2% to 3% | None | 1 to 3 days |
| Payment app (bank account) | Free | None | 1 to 3 days |
| Cash advance | 3% to 5% | 20% to 25% APR, starts when ready | Same day |
| Balance transfer | 3% to 5% | 0% intro, then regular rate | 5 to 14 days |
| Direct purchase | Free | None (if paid in full by due date) | when ready |
| Bank wire transfer | Free to $15 | None | 1 to 3 days |
Frequently Asked Questions
Can I send money from a credit card to a bank account?
Not directly. You can use a payment app like PayPal or Venmo to send money to someone's bank account, but the app charges a 2% to 3% fee if you pay with a credit card. The cheapest option is to link a bank account to the app instead, which is free. Alternatively, you can take a cash advance and deposit it into your bank account, but this costs 3% to 5% upfront plus interest.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash or deposits money into your bank account, and you pay a fee plus interest starting when ready. A balance transfer moves debt from one credit card to another and may offer a lower interest rate for a set period. Both charge an upfront fee, but a balance transfer is only useful if you are moving existing credit card debt, not sending money to someone else.
Why do payment apps charge a fee for credit cards but not bank accounts?
Payment apps charge a fee to cover the cost of processing credit card transactions, which is higher than processing bank transfers. When you link a bank account, the app uses the ACH system, which is cheaper to process. The app passes the savings to you by not charging a fee.
Is it ever a good idea to use a cash advance to send money?
Rarely. A cash advance is one of the most expensive ways to access money because of the upfront fee and when ready interest. It only makes sense if you need physical cash and have no other option. For sending money to another person, a payment app or bank transfer is much cheaper.
Do I earn rewards points when I use a payment app with my credit card?
Some cards do award points on payment app transactions, but many exclude them or treat them as cash advances (which earn no points). Check your card's terms or contact the issuer to confirm whether your specific card earns rewards on the payment app you plan to use.