Credit cards are not designed to move money between accounts, and most methods come with fees and higher interest rates than regular purchases
A credit card can move money to a bank account, but the card issuer treats it differently than a purchase. The most common methods are cash advances, balance transfers, and third-party payment apps. Each one charges a fee upfront, and cash advances charge interest immediately — there is no grace period like there is for regular purchases.
The method you choose depends on where the money needs to go. If you are sending money to another person, a payment app is usually cheapest. If you need cash or want to move money into your own bank account, a cash advance is the direct route but the most expensive one. If you are moving a balance from one credit card to another, a balance transfer card might make sense, but only if you understand the terms.
Key Takeaways
- Cash advances let you withdraw money from an ATM or bank using your credit card, but charge a fee (usually 3 to 5 percent) plus interest that starts accruing immediately.
- Balance transfers move debt from one credit card to another and may offer a 0 percent introductory rate, but charge an upfront fee and only work between credit cards, not to bank accounts.
- Payment apps like Venmo, PayPal, and Square Cash can send money to another person, but using a credit card in these apps often triggers a cash advance fee or a separate transaction fee.
- Bank transfers and ACH payments are free or low-cost alternatives if you have a bank account and can wait one to three business days.
- Your card issuer sets the cash advance limit separately from your credit limit, and it is often much lower.
Cash Advances: Getting Money Directly From Your Card
A cash advance lets you withdraw money using your credit card at an ATM, bank teller, or through a convenience store. The card issuer treats this as a loan against your credit line, not a purchase. You pay a fee upfront — typically 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10 — and interest starts accruing the same day. There is no grace period.
The interest rate on cash advances is usually higher than the rate on regular purchases. If your card charges 18 percent APR on purchases, the cash advance rate might be 22 percent or higher. The fee plus the interest makes this the most expensive way to move money via credit card.
Your card issuer sets a separate cash advance limit, which is often much lower than your total credit limit. You might have a $5,000 credit limit but only a $1,000 cash advance limit. Check your card's terms or call the issuer to find out what your limit is before you try to withdraw.
Balance Transfers: Moving Debt Between Credit Cards
A balance transfer moves the balance from one credit card to another. This only works between credit cards — you cannot transfer a credit card balance to a bank account. The main reason to do this is to move debt to a card with a lower interest rate or a 0 percent introductory offer.
Balance transfer cards often advertise 0 percent APR for 6 to 21 months, depending on the card and the issuer. During that period, you pay no interest on the transferred balance. After the introductory period ends, the regular APR kicks in. You pay an upfront fee for the transfer, usually 3 to 5 percent of the amount transferred, with a minimum of $5.
A balance transfer makes sense only if the introductory rate period is long enough for you to pay down the balance significantly, and only if the fee is lower than the interest you would pay on the original card. If you transfer $2,000 at a 3 percent fee, you pay $60 upfront. If your original card charges 20 percent APR and you would pay $400 in interest over the introductory period, the transfer saves you money. If you would only pay $50 in interest, the transfer costs you more.
Payment Apps and Digital Wallets: Sending Money to People
Apps like Venmo, PayPal, Square Cash, and Apple Pay let you send money to another person. Some of these apps accept credit cards as a payment method, but using a credit card often triggers a fee. Venmo charges 3 percent if you pay with a credit card. PayPal charges 2.2 percent plus $0.30 per transaction. Square Cash charges 1.5 percent.
These fees exist because the app is treating your credit card payment as a cash advance or a special transaction type, not a regular purchase. If you link a debit card or bank account instead, most of these apps charge nothing or a much lower fee. The trade-off is that bank transfers take one to three business days, while credit card payments often process instantly.
If you need to send money to someone and want to use a credit card, compare the app's fee against the cash advance fee your card issuer would charge. A 3 percent app fee might be cheaper than a 5 percent cash advance fee plus interest.
Wire Transfers and ACH Payments: The Cheaper Alternative
If you have a bank account, a wire transfer or ACH payment is almost always cheaper than using a credit card. Wire transfers move money the same day or next business day and cost $15 to $30 through most banks. ACH payments are free and take one to three business days. Neither one charges interest.
The catch is that you need a bank account and the recipient's routing number and account number. If you do not have a bank account or the recipient is in another country, a credit card method or a money transfer service like Western Union might be your only option.
If you are considering a cash advance specifically to fund a wire transfer, stop and use the ACH or wire transfer directly from your bank instead. You will save the cash advance fee and the interest.
Comparing Costs: When Each Method Makes Sense
| Method | Upfront Fee | Interest Rate | Time to Complete | Best For |
|---|---|---|---|---|
| Cash Advance | 3–5% (min. $5–$10) | Starts immediately, usually 20%+ | Same day (ATM) or 1–2 days (bank) | Emergency cash when no other option exists |
| Balance Transfer | 3–5% (min. $5) | 0% for intro period, then regular APR | 3–7 business days | Moving high-interest debt to a lower rate |
| Payment App (credit card) | 1.5–3% | Varies by app; may be treated as cash advance | Instant to 1–3 days | Sending money to a person when debit card is not available |
| Bank ACH Transfer | Free | None | 1–3 business days | Moving money between your own accounts or to someone with a bank account |
| Wire Transfer | $15–$30 | None | Same day or next business day | Moving money quickly when ACH is too slow |
What Happens to Your Credit Score
Cash advances and balance transfers both show up on your credit report and affect your credit score. A cash advance increases your credit utilization — the percentage of your available credit you are using — which can lower your score. A balance transfer does the same thing initially, though the score may recover if you pay down the balance quickly.
Both also trigger a hard inquiry from the card issuer, which can lower your score by a few points temporarily. The inquiry stays on your report for about a year but stops affecting your score after a few months.
If you are planning to apply for a mortgage, car loan, or other credit in the next few months, avoid cash advances and balance transfers if you can. The temporary score drop could affect your approval odds or the interest rate you are offered.
Frequently Asked Questions
Can I transfer money from my credit card to my bank account?
Not directly. You would need to take a cash advance, which charges a fee and interest. A cheaper option is to use your credit card to pay down a debt, freeing up money in your bank account, or to transfer money from your bank account to your credit card to pay the balance down.
What is the difference between a cash advance and a balance transfer?
A cash advance gives you physical cash or moves money to your bank account and charges interest immediately. A balance transfer moves debt from one credit card to another and may offer a 0 percent introductory rate. Balance transfers only work between credit cards; cash advances can go anywhere.
Do payment apps charge a fee if I use my credit card?
Most do. Venmo charges 3 percent, PayPal charges 2.2 percent plus $0.30, and Square Cash charges 1.5 percent. If you link a debit card or bank account instead, the fee is usually zero or much lower, though transfers take longer.
Is there a way to transfer credit card money without paying a fee?
Not through the credit card itself. Your best option is to use a bank ACH transfer or wire transfer from your bank account, which are free or low-cost. If you must use the credit card, a balance transfer to a 0 percent card can eliminate interest, though you still pay the upfront transfer fee.
What happens if I cannot pay back a cash advance?
The balance stays on your card and interest keeps accruing at the cash advance rate, which is usually higher than the purchase rate. If you miss payments, late fees apply and your credit score drops. The card issuer can also lower your credit limit or close the account.