Credit cards are not designed to send money, and most methods cost you money

A credit card is a borrowing tool, not a payment tool. When you use it to send money to another person, you are borrowing from your card issuer at their interest rate, and you will pay a fee on top. The card company charges a cash advance fee (usually 3 to 5 percent of the amount) plus interest that starts accruing immediately — there is no grace period like there is for purchases. If you need to move money to someone else, a debit card, bank transfer, or money transfer service will cost you less or nothing.

That said, there are real situations where you might use a credit card to send money: you do not have access to your bank account, you need to build a record of the transaction, or the recipient is in another country and needs a card payment. This guide covers how each method works, what it costs, and when it makes sense to use it.

Key Takeaways

  • Cash advances from a credit card charge a fee (3 to 5 percent typically) and interest starting immediately, with no grace period.
  • Peer-to-peer payment apps like Venmo and PayPal let you send money using your credit card, but the recipient gets the funds in their bank account, not as a card payment.
  • Money transfer services like Western Union and MoneyGram accept credit cards but charge high fees, usually 5 to 10 percent or a flat amount.
  • Wire transfers through your bank do not accept credit cards directly; you must use your checking or savings account.
  • International transfers using a credit card are possible through some services but carry both card fees and currency conversion markups.

Cash advances: the most expensive way to get cash from your card

A cash advance is when you withdraw money directly from your credit card at an ATM or bank teller. The card issuer treats this as a loan and charges you immediately. You pay a cash advance fee upfront — typically 3 to 5 percent of the amount withdrawn, with a minimum of $5 to $10 — plus a higher interest rate than you pay on purchases. That interest rate is often 2 to 3 percentage points above your regular APR and starts accruing the day you withdraw, not at the end of a billing cycle.

If you withdraw $500 as a cash advance and your card charges a 4 percent fee plus 25 percent APR, you pay $20 upfront and then $10.42 per month in interest (if you do not pay it back immediately). This is the most expensive way to move money using a credit card.

To take a cash advance, go to an ATM that accepts your card or visit a bank branch with your card and ID. Some issuers let you request a cash advance by phone or online, but most do not. Check your card's terms or call the number on the back to find out whether your issuer allows it and what the fee is.

Peer-to-peer apps: sending money to someone's bank account

Apps like Venmo, PayPal, Square Cash, and Zelle let you send money to another person using your credit card as the funding source. The money goes into their bank account or their account with the same app, not as a credit card payment. Most of these services charge a fee when you fund the transfer with a credit card — usually 2 to 3 percent — because the app has to pay the card network a processing fee and passes it to you.

Venmo, for example, charges 3 percent when you link a credit card (but not when you link a debit card or bank account). PayPal charges 2.2 percent plus $0.30 for credit card transfers. Zelle does not charge a fee, but it only works with bank accounts, not credit cards. Square Cash charges 1.5 percent for credit card funding.

These apps are useful if the person you are sending to has an account with the same service, or if they have a bank account and you want the money to arrive within one to three business days. They are not useful if you need to send money to someone without a bank account or app account, or if you need the money to arrive as a card payment.

To use one of these services, download the app, link your credit card, enter the recipient's username or phone number, and confirm the amount. The fee is deducted from the amount you send, so the recipient gets less than you entered unless you adjust for the fee upfront.

Money transfer services: Western Union, MoneyGram, and similar

Services like Western Union and MoneyGram accept credit cards and let you send money to a recipient who can pick it up in cash at a physical location, or who can receive it into a bank account. These services charge high fees — typically 5 to 10 percent of the amount sent, or a flat fee of $15 to $50 depending on the amount and destination.

Western Union, for example, charges $5.99 to send $100 domestically, or $15.99 to send $1,000. For international transfers, the fee can be 8 to 12 percent. On top of the transfer fee, your credit card will charge you a cash advance fee if the service codes the transaction as a cash advance, or a standard purchase fee if it codes it as a purchase. Check with your card issuer before using these services to understand which fee applies.

These services make sense if the recipient does not have a bank account and needs cash, or if you are sending money internationally and the recipient needs it in a specific currency. They do not make sense for domestic transfers between people with bank accounts, because peer-to-peer apps or bank wire transfers are cheaper.

To use Western Union or MoneyGram, visit their website or a physical location (many grocery stores and pharmacies have kiosks), enter the recipient's details and the amount, pay with your credit card, and provide the confirmation code to the recipient so they can pick up the money or have it deposited.

Balance transfers: moving debt from one card to another

A balance transfer is not the same as sending money to another person. It is moving a balance from one credit card to another, usually to take advantage of a lower interest rate or a 0 percent introductory period. You cannot use a balance transfer to send money to someone else; it only works between credit cards in your own name or accounts you control.

If you are trying to pay off a debt owed to another person using a credit card, a balance transfer will not help. You would need to use one of the methods above (cash advance, peer-to-peer app, or money transfer service) or pay the person directly from your bank account.

International transfers using a credit card

Sending money internationally with a credit card is possible through services like Western Union, MoneyGram, Wise (formerly TransferWise), and PayPal, but it is expensive. You pay the service's transfer fee (5 to 10 percent), a currency conversion markup (1 to 3 percent), and potentially a cash advance fee from your card issuer if the transaction is coded that way.

Wise is often cheaper for international transfers than Western Union or MoneyGram because it uses real exchange rates and charges a flat fee of around 1 to 2 percent. However, Wise does not accept credit cards directly — you must link a bank account or debit card. PayPal accepts credit cards for international transfers but charges 4.4 percent plus $0.30, plus a currency conversion markup of 2 to 3 percent.

If you are sending money internationally, compare the total cost (transfer fee plus currency markup plus any card fees) across services before choosing one. For large amounts, the difference can be hundreds of dollars.

What happens to your credit score when you use a credit card to send money

Using a credit card to send money affects your credit score in two ways. First, the transaction increases your card's balance, which raises your credit utilization ratio — the percentage of your credit limit you are using. If you normally use 10 percent of your limit and you send $1,000 on a $10,000 limit card, your utilization jumps to 20 percent. High utilization (above 30 percent) can lower your score temporarily.

Second, if you do not pay off the balance immediately, you will carry interest charges, which means you will owe more next month. This extends the time your utilization stays high and costs you money in interest. The best practice is to pay off the full balance before your next billing cycle closes, so the transaction does not show up on your credit report as carried debt.

Cash advances have an additional impact: some credit scoring models treat them differently from regular purchases, and they may hurt your score more. This is another reason to avoid cash advances if you have other options.

Frequently Asked Questions

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

No. Credit card networks do not allow direct card-to-card transfers. You can only send money to someone's bank account (using a peer-to-peer app or wire transfer) or as cash (using a cash advance or money transfer service). If you need to pay a credit card bill for someone else, you must pay their card issuer directly, not the cardholder.

What is the difference between a cash advance and a purchase on my credit card?

A cash advance charges a fee upfront (3 to 5 percent) and a higher interest rate (often 2 to 3 points above your regular APR), with interest starting immediately. A purchase has no upfront fee and interest only accrues if you carry a balance past your grace period. Cash advances are always more expensive.

Will using a credit card to send money hurt my credit score?

It can, temporarily. The transaction increases your credit utilization ratio, which can lower your score if it pushes you above 30 percent of your limit. Paying off the balance before your next billing cycle closes will prevent this from showing up as carried debt on your credit report.

Is it cheaper to use a credit card or a debit card to send money through an app?

Debit cards are cheaper. Most peer-to-peer apps charge 2 to 3 percent when you use a credit card but charge nothing or a lower fee when you use a debit card or bank account. If you have a choice, link a debit card or bank account instead.

Can I use a credit card to send money internationally?

Yes, through services like Western Union, MoneyGram, PayPal, and Wise, but it is expensive. You pay the service fee (5 to 10 percent), a currency conversion markup (1 to 3 percent), and potentially a cash advance fee from your card. For large amounts, compare the total cost across services before choosing one.