Credit cards are not designed to send money to other people, and most methods that do work come with fees that make them expensive
A credit card lets you borrow money to pay merchants, not to transfer cash to friends, family, or anyone else. If you try to send money using your credit card, you will either pay a steep fee, get charged interest immediately, or both. The card networks—Visa, Mastercard, American Express, Discover—do not offer direct person-to-person transfers the way a bank account does.
That said, there are a few ways to move money using your credit card if you have a real reason to do it. Each one has a cost and a tradeoff. Understanding what those are before you try will save you money and frustration.
Key Takeaways
- Credit cards charge a cash advance fee (usually 3 to 5 percent) plus interest starting immediately if you withdraw cash or use a money transfer service.
- Payment apps like Venmo and PayPal let you link a credit card, but they treat it as a cash advance rather than a purchase, so the same fees apply.
- Wire transfers and money transfer services (Western Union, MoneyGram) accept credit cards but charge both a card fee and a transfer fee.
- The cheapest way to send money is from a bank account or debit card, not a credit card, because neither charges a cash advance fee.
- If you must use a credit card, a balance transfer check (if your card offers one) may be cheaper than a cash advance, but read the terms first.
Why credit cards charge more to send money than to buy things
When you swipe a credit card at a store, the merchant pays a small fee to the card network, and you pay nothing extra. The card company makes money on that merchant fee and on interest if you carry a balance. When you try to send money, there is no merchant to pay the fee—so the card company charges you instead.
This fee is called a cash advance fee, and it is separate from interest. It usually runs 3 to 5 percent of the amount you transfer, with a minimum of $5 to $10. Interest starts accruing the same day—there is no grace period like there is for purchases. If you send $500, you might pay $15 to $25 just to do it, plus interest from day one.
The card company treats money transfers as borrowing cash, not as a purchase. That is why the cost is so much higher.
Using payment apps to send money with a credit card
Apps like Venmo, PayPal, Square Cash, and Google Pay let you link a credit card and send money to contacts. What they do not advertise clearly is that linking a credit card triggers the same cash advance fee and interest as withdrawing cash from an ATM.
If you link a debit card or bank account instead, there is no fee. But if your only option is a credit card, the app will process it as a cash advance. You will see the fee hit your statement within days, and interest will start accruing immediately. Some apps show you the fee before you confirm; others bury it in the terms.
Before you use any payment app with a credit card, log into the app settings and check what payment method is selected. If it says "credit card," switch it to debit card or bank account if you have one. If you do not have either, the app is not a good choice for sending money.
Wire transfers and dedicated money transfer services
Services like Western Union, MoneyGram, and bank wire transfers accept credit cards as payment. But again, they charge a cash advance fee on top of their own transfer fee. A wire transfer might cost $15 to $50 depending on the amount and destination. Add a 3 to 5 percent cash advance fee on top, and you are paying $30 to $100 to move $500.
These services are useful if the person receiving the money needs it in cash or does not have a bank account. But they are expensive ways to use a credit card. If the recipient has a bank account, a direct bank transfer from your account costs nothing.
Balance transfer checks: sometimes cheaper, but read the fine print
Some credit cards come with balance transfer checks—physical checks that draw from your credit line instead of a bank account. If your card offers them, a balance transfer check might have a lower fee than a cash advance (sometimes 1 to 3 percent instead of 3 to 5 percent). Interest still starts immediately, but the fee is smaller.
The catch is that you have to write a check and mail it or deposit it, which takes time. You also need to know the recipient's mailing address or be able to deposit it yourself and then send the money another way. And some cards charge the same fee for balance transfers as for cash advances, so you have to call and ask before you use one.
If your card offers balance transfer checks and the fee is lower than a cash advance, this is the cheapest credit card option. But it is still more expensive than using a bank account.
When you actually need to use a credit card to send money
Most of the time, you should not use a credit card to send money. But there are situations where you might have to: the recipient only accepts credit cards, you do not have a bank account or debit card, or you are in a country where credit cards are the only payment method available.
If you are in that position, use a payment app or money transfer service that lets you compare fees upfront. Some apps show the fee before you confirm the transfer; others do not. Call the service or check their website for the exact fee before you commit. And if you are sending money regularly, open a bank account or get a debit card—both will save you hundreds of dollars a year in fees.
The real cost of using a credit card to send money
Here is what a $500 transfer costs with different methods:
| Method | Cash Advance Fee | Other Fees | Interest (if unpaid for 30 days) | Total Cost |
|---|---|---|---|---|
| Payment app (credit card) | $15–$25 | $0–$3 | ~$7 | $22–$35 |
| Wire transfer (credit card) | $15–$25 | $15–$50 | ~$7 | $37–$82 |
| Bank transfer (debit card) | $0 | $0 | $0 | $0 |
| Balance transfer check | $5–$15 | $0 | ~$7 | $12–$22 |
The interest amount assumes you pay off the transfer within 30 days. If you carry it longer, interest compounds and the total cost rises. These numbers vary by card and by service, but the pattern is always the same: credit card transfers are expensive, and debit or bank transfers are free.
Frequently Asked Questions
Can I use a credit card to send money on Venmo or PayPal?
Yes, but it will be treated as a cash advance and charged a 3 to 5 percent fee plus interest from day one. Link a debit card or bank account instead if you have one. If you only have a credit card, the fee will show up on your statement within days.
What is the difference between a cash advance and a balance transfer?
A cash advance is money you withdraw or transfer using your credit line. A balance transfer moves debt from one card to another. Both charge fees and interest immediately, but balance transfer checks (if your card offers them) sometimes have a lower fee. Always check your card's terms to compare.
Will sending money with a credit card hurt my credit score?
It will not directly hurt your score, but it will increase your credit utilization (the amount of your credit line you are using), which can lower your score temporarily. Paying it off quickly will bring your score back up.
Is there a credit card that does not charge a cash advance fee?
No. All credit cards charge a cash advance fee because the card network requires it. The fee varies by card (usually 3 to 5 percent), but there is no card that waives it entirely. If you want to avoid the fee, use a debit card or bank account instead.
What if I need to send money internationally with a credit card?
International money transfer services like Wise, OFX, and Remitly accept credit cards, but they charge both a cash advance fee and an international transfer fee. The total cost is usually 5 to 10 percent of the amount sent. A bank wire from your account is often cheaper, even though it also costs money.