The main ways to send money using a credit card

You can pay someone with a credit card through a few different routes, and which one works depends on whether the person has a way to receive card payments and whether you want to send the money directly or through a third party. The most common methods are: asking the person to run your card as a payment (in person or over the phone), using a payment app that accepts credit cards, or paying through a service like PayPal or Venmo that links to your card.

Each method has different costs and speed. Some charge you a fee for using a credit card, some charge the person receiving the money, and some charge neither. Understanding which method costs what matters because a credit card fee can turn a small payment into an expensive one.

Key Takeaways

  • Direct card payments (in person or by phone) cost nothing if the receiver accepts them, but require you to share your card details or be physically present.
  • Payment apps like Venmo, PayPal, and Square Cash let you send money to people's phone numbers or email addresses, but most charge a fee if you use a credit card instead of a bank account.
  • Bank transfers and wire transfers are faster and cheaper than credit card payments, but they require knowing the person's account details.
  • Some payment apps charge the receiver a fee instead of the sender, so confirm who pays before you send.
  • Rewards earned on credit card payments count toward your card's cash back or points, which can offset small fees in some cases.

Direct payment: in person or by phone

The simplest way to pay someone with a credit card is to hand them your card or read them the number over the phone. This costs nothing — no fees to you, no fees to them — as long as they have a way to process the card. A business with a card reader can do this instantly. A friend or family member usually cannot, unless they have a small business or use a mobile card reader like Square or PayPal Here.

The downside is that you are sharing your card number. Over the phone, this carries the risk that the person writes it down or stores it insecurely. In person, it is safer because you can see the transaction happen. If you use this method regularly with the same person, ask whether they can set up a payment app instead — it is more secure for both of you.

Payment apps: Venmo, PayPal, and similar services

Payment apps let you send money to someone using their phone number or email address, without sharing your card details. The most common are Venmo (owned by PayPal), PayPal itself, Square Cash, and Google Pay. All of them let you link a credit card, but most charge a fee when you do.

Venmo charges 3% of the amount if you pay with a credit card, but charges nothing if you link a debit card or bank account. PayPal charges 2.2% plus $0.30 per transaction for credit cards. Square Cash charges 1.5% for credit cards. Google Pay does not charge a fee to send money to another person, but the person receiving it may see a fee if they withdraw to a bank account.

The fee matters most on larger amounts. On a $100 payment, Venmo's 3% fee is $3. On a $20 payment, it is $0.60. If your credit card earns 2% cash back, that $0.60 fee wipes out the reward on a $30 payment. Check your card's rewards rate before you decide whether the fee is worth it.

Bank transfers and wire transfers: faster and cheaper

If you know the person's bank account number and routing number, a bank transfer (also called an ACH transfer) is usually free and faster than a credit card payment. You can set this up through your own bank's website or app, and the money usually arrives within one to three business days. Wire transfers are faster — often same-day — but cost $15 to $30 and should only be used for large amounts or urgent situations.

The catch is that you need the person's account details, which not everyone is comfortable sharing. Bank transfers also cannot be reversed once they leave your account, so you have to trust that you sent the money to the right place. For regular payments to someone you know well, this is the cheapest option.

Paying bills and invoices online

If you are paying a business invoice or bill, the business usually has a payment portal where you can enter your credit card details directly. This is common for utilities, insurance, rent, and contractor invoices. The business absorbs the credit card processing fee (or builds it into their pricing), so you pay nothing extra. Your credit card rewards still count.

Some businesses charge a convenience fee if you pay by credit card instead of check or bank transfer. This fee is usually 2% to 3% and is disclosed before you confirm the payment. If the fee is high, ask whether the business accepts bank transfers instead.

Peer-to-peer payment services that charge the receiver

Some payment services charge the person receiving the money instead of the sender. This is common in business settings. For example, if you use PayPal to send money as a "goods and services" payment (rather than a personal transfer), PayPal charges the receiver 2.2% plus $0.30. Square Cash for Business works the same way.

These services are useful when you need a record of the transaction for tax or accounting reasons, because the receiver gets a receipt and the payment is documented. But confirm with the person before you send — they may not want to pay a fee to receive money from you, and they have the right to ask you to cover it instead.

What happens to your rewards when you pay someone

Most credit cards earn rewards on all purchases, including payments to other people through payment apps and direct card transactions. The rewards count the same way — as cash back, points, or miles — and post to your account on the same schedule as other purchases.

The exception is when you use a payment app that charges a fee. If Venmo charges you $3 to send $100 and your card earns 2% cash back, you earn $2 in rewards but pay $3 in fees, for a net loss of $1. On smaller payments, the fee almost always exceeds the reward. On larger payments, the reward can offset the fee.

Frequently Asked Questions

Can I send money to someone's credit card directly?

Not through most payment apps. Venmo, PayPal, and Square Cash all send money to a bank account, not a credit card. If you want to put money on someone's credit card, you would need to contact the credit card company directly, which most do not allow for security reasons.

Is it safe to give someone my credit card number over the phone?

It is less safe than using a payment app or in-person card reader. If you must share your number by phone, use it only with businesses you trust, and never share the CVV code unless they specifically ask for it. For regular payments to friends or family, set up a payment app instead.

Why do some payment apps charge a fee for credit cards but not debit cards?

Credit card companies charge merchants a processing fee (usually 2% to 3%) for each transaction. Debit cards and bank transfers have lower processing fees. Payment apps pass this cost to you when you use a credit card. Linking a debit card or bank account costs them less, so they charge you nothing or a lower fee.

What is the fastest way to send money to someone?

Wire transfers are fastest — usually same-day or next-day — but cost $15 to $30. Payment apps like Venmo and PayPal are nearly instant between app users, but the money may take one to three days to reach a bank account. Bank transfers (ACH) take one to three business days and are free.

Do I earn rewards if I pay someone through a payment app?

Yes, you earn rewards on the transaction itself. But if the app charges a fee for using a credit card, the fee often exceeds the reward on smaller amounts. On a $20 payment with a 3% fee and 2% cash back, you lose $0.20 overall.