The most common way is a payment app that turns a card into a digital transfer
When someone wants to pay you with their credit card, they need a way to send that money to you — and you need a way to receive it. The simplest route for most people is a payment app like Venmo, PayPal, Square Cash, or Google Pay. The person enters your username or phone number, swipes their card, and the money moves to your account. You then transfer it to your bank if you want cash, or leave it in the app to spend later.
The catch is that credit card payments through these apps usually come with a fee — typically 2% to 3% of the amount sent. So if someone sends you $100 by credit card through Venmo, you might receive $97 or $98. Debit cards and bank transfers through the same apps are usually free or cost less. This is why the person paying you might ask if they can use a different method.
Not all apps handle credit cards the same way. Some charge the sender the fee, some charge you, and some let you choose who pays. Before you share your payment information, check the app's fee structure so you both know what to expect.
Key Takeaways
- Payment apps like Venmo, PayPal, and Square Cash let someone send you money using their credit card, but usually charge a 2% to 3% fee on the transaction.
- The fee can be paid by the sender, by you, or split between you depending on which app you use and how you set it up.
- If you are receiving money for a business or regular payments, a merchant processor like Square or Stripe may offer better rates than consumer payment apps.
- Some apps let you receive credit card payments only through their website or a special link, not through the app itself.
- Always confirm the fee structure with the person paying you before they send money, so neither of you is surprised.
Payment apps that accept credit cards
Venmo lets you receive money from someone's credit card, but charges a 3% fee. The sender can choose to pay the fee themselves or ask you to absorb it. You can also create a Venmo link and share it with someone, and they can pay through that link using a card.
PayPal works similarly — someone can send you money using their credit card through the app or a PayPal.me link. The fee is 2.2% plus $0.30 for goods and services payments, or 2.2% for personal transfers. PayPal is more flexible about what kind of payment you are receiving, so it works for both casual transfers and small business transactions.
Square Cash (now called Cash App) charges 3% for credit card payments. Google Pay does not charge a fee for credit card transfers between individuals, but the feature is not available in all states and may have limits on how much you can receive.
All of these apps require you to set up an account and link a bank account to withdraw money later. The money usually sits in your app account first, and you transfer it to your bank when you want cash.
When you are receiving money for a business or regular payments
If someone is paying you for a service, product, or invoice — not just splitting a dinner bill — a merchant processor may be a better fit than a consumer payment app. Square, Stripe, and PayPal all offer business accounts that let you accept credit cards.
These services typically charge a lower percentage (around 2.6% plus $0.10 per transaction for in-person payments, or 2.9% plus $0.30 for online payments) than consumer apps, and they give you receipts and records that matter for taxes. You can create an invoice, send a payment link, or use a card reader if someone is paying you in person.
The trade-off is that these accounts are designed for businesses, so they may ask for more information about what you are selling and how often you expect to receive payments. If you are a freelancer, contractor, or small business owner, this is usually worth the extra setup.
How to share your payment information safely
Once you have chosen an app or processor, you do not need to share your credit card number or bank account number with the person paying you. Instead, you share a username, phone number, email address, or a unique payment link. The person enters their own card information into the app or website, not into a message to you.
Never ask someone to send you their card number or bank details through text, email, or a messaging app. If you are setting up a payment link for someone, use the official link from your app or processor — not a shortened URL or a link you created yourself. This protects both of you from fraud.
If you are receiving payments regularly from the same person, some apps let you set up a recurring payment so they do not have to send money manually each time. Check your app's settings to see if this option is available.
What happens to the money after it arrives
When someone sends you money through a payment app, it lands in your account with that app first. You can spend it directly from the app if the app has a debit card or lets you pay merchants, or you can transfer it to your bank account. Most apps let you transfer to your bank for free, but it usually takes one to three business days.
Some apps hold the money briefly to check for fraud, especially if it is your first time receiving a payment or the amount is large. This is normal and does not cost you anything — it just means the money might not be available to transfer when ready.
Keep track of what you receive, especially if you are receiving payments for work or a side business. The payment app will send you a record at the end of the year if you receive more than a certain amount (usually $20,000 or more), but you are responsible for reporting all income to the IRS regardless of whether you get a form.
Why someone might prefer to pay you a different way
Credit card payments come with fees, so someone might ask if they can pay you with a debit card, bank transfer, or cash instead. Debit card payments through most apps are free or cost less, and bank transfers are usually free as well. If the person is paying you a large amount, even a 2% or 3% fee adds up quickly.
Some people also avoid payment apps because they do not want to create another account or do not trust the app with their information. This is a reasonable concern, and it is worth asking what method works best for them before they try to send money.
If you are receiving money from someone outside the United States, credit card payments may be the only option available through some apps, but the fees are usually higher and the transfer may take longer.
Frequently Asked Questions
Can someone pay me with a credit card if I do not have a business account?
Yes. Consumer payment apps like Venmo and PayPal let you receive credit card payments with a regular personal account. You do not need to set up a business account unless you are receiving large or frequent payments, or you want lower fees and better record-keeping for tax purposes.
What if the person paying me does not have the app I use?
Most payment apps let you create a payment link that you can share by text, email, or social media. The person can click the link and pay you without having the app installed. They just need to enter their card information on the payment page.
Do I have to pay taxes on money people send me through payment apps?
If it is a personal transfer — like splitting rent or a gift — you typically do not owe taxes. If it is payment for work, a service, or goods you sold, it counts as income and you owe taxes on it. Keep records of what you receive so you can report it accurately.
Can I receive credit card payments if I do not have a bank account?
Most payment apps require you to link a bank account so you can transfer money out later. Some apps let you keep money in your account and spend it directly through a debit card they issue, but this is less common. Check your app's requirements before you set up your account.
What should I do if someone sends me money by mistake?
Contact the person and ask them to request a refund through the app. Most payment apps have a dispute or refund process. Do not spend the money — if it was sent by mistake, the sender can report it and the app may reverse the transaction, leaving you short.