How to Send Money With a Credit Card?

Last Updated on April, 2024

I’ve got an urgent payment to make, but I have no funds in my bank account. What should I do? Well, no worries. We are gonna help you make smart financial decisions!

You can use your credit card to make your payments on time!

You can do this in several ways, which will be discussed right away. By the end of the article, you’ll know EVERYTHING about sending money with your credit card!

Quick Summary

Link your credit card to apps like PayPal, Venmo, or Cash App and use them to send money directly to others. Fees apply (around 2.9% to 3%, plus potential fixed fees).

Use your credit card to withdraw cash from an ATM or bank, then deposit it into your bank account for use. High fees and interest rates apply immediately, with no grace period.

Use services like Western Union or MoneyGram to send money directly from your credit card to another person’s bank account or for cash pickup. Fees vary by service.

What are the Ways to Transfer Money With My Credit Card?

A person holding a credit card on his hand and typing something on a laptop

There are different ways you can send money from your credit card. Each method varies in expenses and convenience. You can check about each method below.

Cash Advances

A cash advance is a short-term loan you borrow against your credit limit. If you have a credit card and bank account with the same bank, you can have the bank deposit cash directly to your account. You can then withdraw cash in an ATM or bank branch with your credit card PIN, which is similar to a debit card. 

Even if this sounds simple, you have to remember that this comes with several fees and interests too. You’re basically adding more debt to your credit card. 

The transaction fees and interests applicable vary based on your bank or financial institution. Information related to your fees and interest rates will be mentioned in the Schumer box for your card. Also, remember that there is no grace period for cash advances. This means that interest will be accrued immediately once you receive money.

Convenience Checks

Convenience checks are very similar to cash advances. You can use these checks to transfer money from your credit card to your checking account. You’ll be charged the same fees and interests as a cash advance, with no grace period for interest as well. (Convenience checks don’t seem that convenient, I guess!)

Peer-To-Peer Payment Apps

Using peer-to-peer payment apps is also a convenient way of sending money. Your credit card and your payment app account can be linked. Then, you can transfer money online to approved recipients, just like how you transfer funds from your bank account.

But here, too, you’ll be charged additional fees if your funding source is a credit card. 

The most used payment apps are:

You must have a PayPal account and link your credit card to the PayPal app. You can make payments with the “Pay or send money” option. You’ll be charged a fee of 2.99% from your transfer, along with a fixed fee based on the currency.

Have you ever wondered “Can I Use Paypal to Transfer Money Internationally?

You have to add your credit card as the payment method in the app and click on “Pay/Request” to make a payment. Venmo charges a 3% fee for your transfer. Not only that, but if you’re using a Visa or Mastercard, you’ll also be charged a cash advance fee by your credit card company. 

Your credit card needs to be linked in the app first. Payments can be made by clicking on “Pay & Request.” A 3% transaction fee from your transfer will be charged for your payments. 

But wait… Is Cash App International?

You need to add your credit card to the app, and you’ll be able to make credit card payments. You can do this by clicking on “Credit Card Bill” and follow the instructions provided. You will be charged 2.9% from your transfer with $0.30 for a web or mobile transaction. 

Money Transfer Services

Credit card money transfers can be done with the help of third-party money transfer service providers like Western Union or MoneyGram

But these services also charge additional fees. For instance, Western Union’s fees can be seen in its payment estimator tool.

Wire Money Using a Credit Card

Another option for sending money from your credit card is to initiate a wire transfer. You can find the wire transfer through your credit card. 

You can do this in several steps:

  • Visit the money transfer service’s website that you prefer.
  • Enter the amount you need to send.
  • Fill in your recipient’s bank account information (or yours).
  • Select the payment method as ‘credit card’ and submit the transfer. 

But this will also be considered as a cash advance. So you’ll have to pay the cash advance fee and a higher interest rate with no grace period. 

On top of all of these, you’ll also be charged with wire transfer fees as well, based on your bank. International transfers will be charged further. Phew, that’s a lot! 

Things to Consider Before You Send Money With Your Credit Card

a person holding credit cards and cash on a wallet
  • Your Credit Card Issuer

You have to understand if your credit card issuer supports a lower cost to borrow against your card’s credit limit without needing a cash advance. Typically, Amex, Citi, and Chase do this.

  • The Total Cost You Incur

Understand the cost you’ll have to incur when sending money. This includes the transaction fees and the interest rate. Usually, transfer fees will be a percentage of your transfer amount. Interest rates also can vary.

  • Alternatives

Finally, before making your final decision, do your calculations and compare the costs you’ll incur for different options. Remember, you have to make sure you can easily pay back the money you transfer.

Will Sending Money From My Credit Card Affect My Credit Score?

Any change in your credit card balance can affect your credit score. If you’re using a cash advance and fail to pay it back on time, your credit score will be affected negatively. However, if you pay your loan back in full, it can have a positive impact on your credit score. This includes credit card rewards as well.

What is the Maximum Amount I Can Send From My Credit Card?

An image of a graph showing pennies going up

The maximum amount that you can send from your credit card depends on the credit card issuers. For most credit cards, it can be around 20% to 30% of your available credit limit. In some instances, it can be 50% or more from your available credit limit.

The exact credit card limit can be seen in your monthly statement. You can modify it to a higher or lower limit by simply calling the number on the back of your card and requesting a change.

Fees and Interest of Sending Money With Your Credit Card

The fees and interest can vary depending on the method you choose to send money from. If you choose to obtain a cash advance, you’ll have to pay a fee and interest according to your bank. The interest will start accruing from the moment you borrow money itself.

If you choose to use convenience checks, the same fee and interest as a cash advance will be charged. Here, too you’ll not have a grace period. When you wire money, the same charges will be applied, as all three of these methods are considered almost the same.

Peer-to-peer apps are another option that charges different rates and percentages for fund transfers. 

  • PayPal: 2.99% from your transfer + a fixed fee based on currency
  • Venmo: 3% from your transfer + cash advance fee
  • Cash app: 3% of your transfer amount
  • Amazon Pay: 2.9% from your transfer + $0.30 for the web or mobile transaction

Pros and Cons of Transferring Money With a Credit Card

Pros

Provides various options to send money with a credit card.
Is a fast and straightforward process.
If you pay your debt back on time, you can have a positive impact on your credit score and earn rewards too.
In an urgent situation, it can help you make your payments.

Cons

With options like cash advances, convenience checks, and wire transfers, interest will immediately start accruing.
Have to incur additional costs with any option you opt for.
Can negatively affect credit score if debt is not paid back.
Just lead to more debt being handled carelessly.

Conclusion

So to conclude, sending money with your credit card can be helpful when you need it in an emergency, and you don’t have any other money in your hand. But it comes with its fair share of additional costs and expenses which you become liable for. 

You’ll have to repay your debts by the deadline to ensure your credit score isn’t affected badly, too. 

With all of that in mind, if you still have no choice, there are a few ways in which you can send money with your credit card. You can opt for cash advances, convenience checks, wire transfers, or use peer-to-peer payment apps. All of these options come with varying costs and interests.

FAQs

The easiest way to send money with a credit card is through a peer-to-peer app, although cash advances are also an option but may incur fees and interest charges.

The best apps used by many people around the world are

  • PayPal
  • Venmo
  • CashApp
  • Amazon Pay
  • Google Pay
  • Apple Cash
  • Zelle

Each app comes with its own pros and cons. With varying rates and extra fees.

  • Can You Send Money On Cash App With A Credit Card?
  • Can Someone Pay Me With A Credit Card On Paypal?

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Author
Allen Morning
I'm Allen Morning, with a background spanning over 15 years in international finance and education from Harvard and Stanford. I founded Currenciap with a vision to demystify and streamline global financial transactions. My journey in finance has fueled my commitment to creating a platform that is both user-friendly and efficient, making international finance accessible to everyone. You can find more about me here.

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