The main ways to send money using a credit card

You can pay someone with a credit card in three ways: send money directly through a payment app, use a money transfer service, or give them your card number to charge. Which one works depends on who you're paying, whether they're nearby, and whether you want to avoid fees.

Direct payment apps like Venmo, PayPal, and Cash App let you link your credit card and send money to someone's phone number or username. Money transfer services like Western Union and MoneyGram take your credit card at a physical location or online and deliver cash to a recipient. Giving someone your card number to charge works only if you trust them completely — they can see your full card details and expiration date.

The catch: most payment apps and transfer services charge a fee when you pay with a credit card instead of a bank account. That fee is usually 2% to 3% of the amount sent, plus a flat dollar amount. Paying with a debit card or bank account transfer costs nothing or much less.

Key Takeaways

  • Payment apps like Venmo and PayPal charge 2% to 3% when you link a credit card, but charge nothing when you link a bank account.
  • Money transfer services like Western Union let you pay with a credit card at a physical location or online, with fees that vary by amount and destination.
  • Giving someone your credit card number to charge yourself means they see your full card details and can charge you again without asking.
  • If you're paying a business, ask whether they accept credit cards directly — most do, and it costs you nothing extra.

Payment apps: Venmo, PayPal, Cash App, and others

Payment apps are the fastest way to send money to someone you know. You create an account, link your credit card or bank account, and send money using the recipient's phone number, email, or username. The money usually lands in their account within minutes, though they may need to transfer it to their own bank account to withdraw cash.

When you link a credit card, the app charges you a fee — typically 1.75% to 3% of the amount sent, depending on the app. Venmo charges 3% for credit cards. PayPal charges 2.2% plus $0.30 for standard transfers. Cash App charges 3% for credit cards. If you link a bank account or debit card instead, most apps charge nothing. Some apps offer a paid subscription that lowers or removes the fee, but you pay a monthly cost for that.

Payment apps work best when both people have the app and live in the same country. They're not designed for large amounts — most apps have daily or monthly sending limits, usually between $1,000 and $10,000. If you're sending money to someone outside the United States, a money transfer service is usually faster and cheaper.

Money transfer services: Western Union, MoneyGram, and wire transfers

Money transfer services let you send cash to someone in person or to their bank account. You pay with your credit card at a physical location, through their website, or through their app. The recipient picks up cash at another location or receives it in their bank account, depending on the service and the amount.

Western Union and MoneyGram both accept credit cards online and at physical locations. Fees depend on how much you send and where it's going. Sending $100 domestically costs roughly $5 to $10. Sending money internationally costs more — $15 to $50 for the same amount, depending on the destination country. Both services publish their fee schedules online before you complete the transaction.

Bank wire transfers are different. You contact your bank and give them the recipient's bank account number and routing number. Your bank charges a fee (usually $15 to $30) and sends the money directly to their bank account. Wire transfers work only if the recipient has a bank account and you know their account details. They're slower than payment apps — usually one to three business days — but they work for larger amounts and international transfers.

Paying a business or service provider with a credit card

If you're paying a business, restaurant, or service provider, ask whether they accept credit cards directly. Most do, either in person, over the phone, or through their website. Paying this way costs you nothing extra — the business pays the processing fee to the card network, not you.

Some businesses use payment processors like Square or Stripe to accept cards. Others have their own payment portal. A few still accept only cash or checks. If you're unsure, call or visit their website before you show up. If they don't accept cards and you want to pay with a credit card anyway, you can use a payment app or money transfer service to send them cash, but you'll pay the fee yourself.

For recurring payments — subscriptions, rent, utilities — set up autopay through the business's website or app if they offer it. This is usually free and ensures you don't miss a payment. If the business doesn't offer autopay, you can sometimes set up automatic payments through your credit card issuer's bill pay feature, though this is less common.

Giving someone your credit card number to charge

You can give someone your credit card number and let them charge it themselves. This works for one-time payments — splitting a hotel bill, paying a friend back for groceries, or paying a contractor. The person charges your card and the money lands in their account immediately.

The risk is that they see your full card number, expiration date, and CVV. They can charge you again without asking, or share your number with someone else. Only do this with people you trust completely. If something goes wrong, you can dispute the charge with your credit card issuer, but that takes time and effort.

A safer option: use a virtual card number. Some credit card issuers (American Express, Capital One, and others) let you generate a temporary card number that works only once or for a specific merchant. You give the temporary number instead of your real one. If the person tries to charge it again, the charge fails. Check your card issuer's app or website to see whether this feature is available.

Fees, limits, and what to watch for

Payment apps and money transfer services charge fees when you use a credit card, but not when you use a bank account or debit card. The fee is usually a percentage of the amount sent (1.75% to 3%) plus a flat dollar amount ($0.30 to $1.00). For small amounts, the flat fee matters more. For large amounts, the percentage matters more.

Most payment apps limit how much you can send per day or per month. Venmo's limit is $299.99 per week for unverified accounts and $20,000 per week for verified accounts. PayPal's limit is $20,000 per transaction. Cash App's limit is $250 per day for new accounts and up to $7,500 per day for verified accounts. These limits change, so check the app's help section for current numbers.

Watch for scams. If someone asks you to send money through a payment app or wire transfer and you don't know them, it's almost always a scam. Legitimate businesses and government agencies don't ask for payment this way. If you send money and realize it was a scam, contact the payment service immediately — some can reverse the transaction if they catch it fast enough, but most cannot.

Frequently Asked Questions

Can I pay rent or a mortgage with a credit card?

Most landlords and mortgage lenders don't accept credit cards directly because the processing fees are too high. You can use a payment app or money transfer service to send them cash, but you'll pay the fee yourself. Some third-party services let you pay rent with a credit card and charge you a fee — usually 2% to 3%. Ask your landlord or lender whether they have a preferred payment method before you try.

What happens if I dispute a charge after I gave someone my credit card number?

You can dispute it with your credit card issuer, and they'll investigate. If the person can prove you authorized the charge, the dispute fails and you owe the money. If you can't prove you authorized it, the issuer may reverse it. Keep records of any agreement you made — a text message, email, or receipt — to support your case.

Is it safe to use a payment app to send money to someone I don't know?

No. If you send money to a stranger through a payment app and they don't send you what they promised, you have almost no way to get your money back. Payment apps don't protect you the way credit cards do. Only send money through these apps to people you know and trust.

Do I earn credit card rewards when I pay someone with a payment app?

Yes, you earn rewards on the credit card transaction itself. When you link your credit card to Venmo or PayPal and send money, the purchase counts toward your rewards. However, some cards exclude payment apps from bonus categories. Check your card's terms to see whether payment app transactions earn the full rate or a lower rate.

What's the difference between a wire transfer and a payment app?

A wire transfer goes directly from your bank account to the recipient's bank account and costs $15 to $30. It takes one to three business days and works for large amounts. A payment app sends money to the recipient's app account, costs nothing if you use a bank account (or 2% to 3% for a credit card), and lands in minutes. Wire transfers are better for large amounts and international transfers. Payment apps are better for small amounts between people who both have the app.