You can send money with a credit card, but it usually costs more than other methods and comes with restrictions
A credit card is not the fastest or cheapest way to send money to someone else. Most credit card companies do not let you transfer funds directly to another person's bank account the way you can with a debit card or bank transfer. Instead, you have a few workarounds: you can use a third-party money transfer service that accepts credit cards, send money through a peer-to-peer payment app, or take a cash advance and hand over the cash. Each option charges a fee, and some charge more than others.
The reason credit card companies restrict direct transfers is that they treat a money transfer as a cash advance rather than a purchase. A cash advance on a credit card typically carries a higher interest rate than regular purchases, starts accruing interest immediately (no grace period), and includes an upfront fee of 3 to 5 percent of the amount you withdraw. If you send $500 this way, you might pay $15 to $25 just to access the money, plus interest from day one.
Key Takeaways
- Credit cards do not allow direct bank-to-bank transfers; you must use a third-party service, which charges a fee between 2 and 5 percent.
- A cash advance from your credit card costs 3 to 5 percent upfront plus a higher interest rate and no grace period, making it the most expensive option.
- Peer-to-peer apps like Venmo and PayPal accept credit cards but charge 1.75 to 3 percent when you use a credit card instead of a bank account.
- Money transfer services like MoneyGram and Western Union accept credit cards but charge 4 to 5 percent for the transfer.
- If you have a debit card or bank account, using those instead of a credit card cuts your fee in half or eliminates it entirely.
Third-party money transfer services that accept credit cards
Services like MoneyGram, Western Union, and Wise (formerly TransferWise) let you send money using a credit card, but they charge you for the privilege. MoneyGram and Western Union typically charge 4 to 5 percent of the transfer amount when you pay with a credit card, though the exact fee depends on the destination country and how the recipient receives the money. Wise charges a smaller percentage (usually 1 to 2 percent) but adds a fixed fee on top, and the total is still higher than if you paid from a bank account.
These services are useful if you need to send money internationally or to someone without a bank account, since they offer cash pickup or mobile wallet delivery. But for sending money domestically to someone with a bank account, you are paying extra for a service you do not need. The fee structure is transparent — you see the exact cost before you confirm the transfer — but the cost is real.
Peer-to-peer payment apps and credit card fees
Apps like Venmo, PayPal, Square Cash, and Zelle let you send money to friends and family, and most accept credit cards. However, they charge a fee when you use a credit card instead of a bank account or debit card. Venmo charges 3 percent when you pay with a credit card. PayPal charges 1.75 percent for peer-to-peer transfers funded by credit card. Square Cash charges 1.5 percent. Zelle does not accept credit cards at all — only bank accounts and debit cards.
The reason for the fee is the same: the app company has to pay a processing fee to the credit card network, and they pass that cost to you. If you link a bank account or debit card instead, most of these apps charge nothing or a flat fee of $0.25. So if you are sending $100 to a friend, using a credit card costs you $1.75 to $3, while using a bank account costs you nothing. The difference grows with larger amounts.
Cash advances: the most expensive option
Taking a cash advance on your credit card and handing over the cash is technically sending money, but it is the most expensive way to do it. Your credit card company charges an upfront fee of 3 to 5 percent just to withdraw the cash. That $500 transfer costs $15 to $25 before you even hand it over. On top of that, the interest rate on a cash advance is usually 2 to 3 percentage points higher than your regular purchase APR, and interest starts accruing immediately — there is no grace period like there is for purchases.
If you carry a balance, that cash advance interest compounds daily. A $500 cash advance at a 25 percent APR costs you about $3.13 per month in interest alone, on top of the upfront fee. This option makes sense only if you have no other way to access cash and you pay off the balance immediately.
International transfers with a credit card
Sending money internationally with a credit card is possible but expensive. Services like Wise, MoneyGram, and Western Union all accept credit cards for international transfers. Wise is usually the cheapest option for large amounts because it uses the real exchange rate and charges a smaller percentage fee, though the fee structure is less transparent than MoneyGram or Western Union. For amounts under $500, the difference in total cost between services is often small — usually $5 to $15 — so the fastest service might be worth the extra dollar or two.
If you are sending money to someone in another country regularly, opening a bank account at a bank that offers international transfers (like HSBC or Wise itself) can save you money over time. But for a one-time transfer, a credit card through a money transfer service is faster than setting up a new account.
When a credit card is the only option you have
If you do not have a bank account or debit card, a credit card is better than nothing. Peer-to-peer apps and money transfer services will process your transfer, and you will pay the fee. The fee is not ideal, but it is the cost of access. In this situation, compare the fee percentages: Venmo at 3 percent is cheaper than MoneyGram at 4 to 5 percent for domestic transfers. For international transfers, Wise is usually cheaper than Western Union.
If you are in this position regularly, opening a basic checking account at a bank or credit union can save you hundreds of dollars per year. Many banks offer free checking with no minimum balance, and some credit unions offer accounts to people with no credit history or a thin credit file.
Comparing the total cost of each method
| Method | Fee with Credit Card | Fee with Bank Account/Debit Card | Best for |
|---|---|---|---|
| Venmo | 3% | Free | Sending to friends domestically |
| PayPal | 1.75% | Free | Sending to friends domestically |
| Square Cash | 1.5% | Free | Sending to friends domestically |
| Wise | 1–2% + fixed fee | 1–2% + fixed fee | International transfers |
| MoneyGram | 4–5% | 2–3% | Cash pickup internationally |
| Western Union | 4–5% | 2–3% | Cash pickup internationally |
| Credit card cash advance | 3–5% + interest | N/A | Emergency only |
Frequently Asked Questions
Can I use a credit card to send money directly to someone's bank account?
No. Credit card companies do not allow direct transfers to another person's bank account. You must use a third-party service like Venmo, PayPal, or a money transfer service, and you will pay a fee. If you want to send money to a bank account without a fee, use your own bank account or debit card instead.
What is the cheapest way to send money with a credit card?
For domestic transfers, PayPal at 1.75 percent is usually cheaper than Venmo at 3 percent. For international transfers, Wise charges 1 to 2 percent plus a fixed fee, which is usually less than MoneyGram or Western Union. But the cheapest option overall is to use a bank account or debit card, which charges nothing or a flat fee.
Do I have to pay interest on a credit card money transfer?
Only if you take a cash advance. Money transfers through apps like Venmo or services like Wise are treated as purchases, not cash advances, so they do not carry a higher interest rate or start accruing interest immediately. However, you still pay the upfront transfer fee.
Can I send money internationally with a credit card?
Yes, through services like Wise, MoneyGram, and Western Union. Wise is usually the cheapest for large amounts. MoneyGram and Western Union are faster for cash pickup in some countries. All three charge a percentage fee when you use a credit card, and the fee is higher than if you paid from a bank account.
What happens if I use a credit card cash advance to send money?
You pay an upfront fee of 3 to 5 percent, a higher interest rate than regular purchases, and interest starts accruing immediately with no grace period. A $500 cash advance costs at least $15 to $25 upfront, plus daily interest. This is the most expensive way to send money and should be used only in an emergency.