Credit cards are not designed to send money to other people, and most card issuers block it or charge fees that make it expensive
You cannot use a credit card the way you use a debit card or bank transfer to move money into someone else's account. Credit cards are borrowing tools — when you swipe or tap, you are taking a short-term loan from the card issuer, not moving money you already have. The few methods that do exist to send money with a credit card come with high costs: cash advances charge interest when ready and often include upfront fees; third-party payment apps may accept credit cards but treat them as cash advances; and money transfer services that take credit cards typically charge 3 to 5 percent of the amount sent.
If you need to send money to someone, a debit card, bank transfer, or peer-to-peer payment app (Venmo, PayPal, Cash App) will almost always be faster and cheaper. If you only have a credit card available, understand what you are paying before you proceed.
Key Takeaways
- Credit card cash advances let you withdraw money, but they charge interest starting when ready and usually include a fee of 3 to 5 percent of the amount withdrawn.
- Payment apps like Venmo and PayPal accept credit cards but often treat them as cash advances, triggering the same high fees and when ready interest.
- Money transfer services (Western Union, MoneyGram) accept credit cards but charge 3 to 5 percent or more, plus the card issuer may add a cash advance fee on top.
- Bank transfers and debit cards have no fees and no interest, and should be your first choice if the person you are sending to has a bank account.
- If you use a credit card to send money, the interest clock starts when ready — you do not get a grace period like you do with regular purchases.
Cash advances: the most direct method and the most expensive
A cash advance is a withdrawal of cash using your credit card at an ATM or bank teller. The card issuer treats it as a loan, not a purchase. You can then give that cash to someone else, but the cost is steep.
Most card issuers charge a cash advance fee of 3 to 5 percent of the amount withdrawn, with a minimum of $5 to $10. On top of that, interest begins accruing when ready — there is no grace period like there is for regular credit card purchases. The interest rate for cash advances is often higher than your regular purchase APR, sometimes 2 to 3 percentage points higher. If you withdraw $500 and pay it back in 30 days, you could pay $15 to $25 in fees and interest combined.
To take a cash advance, visit an ATM that accepts your card, or go to a bank branch and ask the teller. You will need your PIN. The money appears in your hand when ready, but the debt appears on your credit card statement the same day.
Payment apps and whether they treat credit cards as cash advances
Apps like Venmo, PayPal, and Cash App let you send money to friends, but their treatment of credit cards varies. Some allow credit cards with no extra fee; others treat a credit card as a cash advance and charge accordingly.
Venmo does not charge a fee to send money to another Venmo user if you link a debit card or bank account. If you link a credit card, Venmo charges 3 percent of the amount sent. Your card issuer may also treat this as a cash advance and charge its own fee and interest, though many do not — check your card's terms or call the issuer to ask.
PayPal allows credit card transfers to other PayPal users with no PayPal fee, but your card issuer may flag it as a cash advance. If you are sending money outside PayPal (to a bank account), PayPal charges a fee that varies by country and method, typically 2 to 3 percent plus a fixed amount.
Cash App does not accept credit cards for sending money to other users. You can only link a debit card or bank account. If you want to add money to Cash App using a credit card, the app charges 1.5 percent, and your card issuer may treat it as a cash advance.
Before you use any app with a credit card, log into your card issuer's website or call the customer service number on the back of your card and ask: "If I use my credit card on [app name], will you treat it as a cash advance?" The answer determines whether you pay 3 to 5 percent in fees plus when ready interest, or just the app's fee.
Money transfer services: Western Union, MoneyGram, and similar
Services like Western Union and MoneyGram let you send money to someone in person or to their bank account. They accept credit cards, but the cost is high.
Western Union charges a fee based on the amount sent and the destination. Sending $100 domestically (within the US) costs roughly $5 to $15 depending on how fast you want it to arrive. Sending $500 costs $15 to $30. These are Western Union's fees. On top of that, your credit card issuer may charge a cash advance fee and interest if it treats the transaction as a cash advance.
MoneyGram's fees are similar: $5 to $15 for small amounts, scaling up with larger transfers. Again, your card issuer may add its own fees.
These services are useful when the person you are sending to does not have a bank account or needs cash in hand quickly. They are not useful as a cheap way to send money — a bank transfer or debit card is always cheaper if the recipient has a bank account.
Why credit cards are not designed for sending money
Credit cards exist to let you borrow money for purchases and pay it back over time. The card issuer makes money from interest and from fees merchants pay when you swipe. Sending money to another person does not fit this model — there is no merchant, no purchase, and the issuer sees it as a cash withdrawal, which is riskier and more expensive to process.
Banks and card issuers also use cash advance fees and high interest rates to discourage people from using credit cards as a substitute for bank accounts. If you are regularly sending money to others, you should have a bank account and use transfers or a debit card. If you do not have a bank account, a prepaid debit card or a service like Chime or Current (which offer free checking) is cheaper than using credit card cash advances.
Comparing the cost of different methods
| Method | Fee | Interest | Speed |
|---|---|---|---|
| Bank transfer (debit card or ACH) | None | None | 1 to 3 business days |
| Venmo (debit card) | None | None | 1 to 3 business days |
| Venmo (credit card) | 3% + possible card issuer fee | Possible, if card issuer treats as cash advance | 1 to 3 business days |
| Credit card cash advance | 3 to 5% | Yes, starts when ready | when ready (cash in hand) |
| Western Union (credit card) | $5 to $30 + possible card issuer fee | Possible, if card issuer treats as cash advance | Minutes to 1 business day |
What to do if you only have a credit card
If you need to send money and only have a credit card, take a cash advance and give the cash to the person. It is the most straightforward method, even though it is expensive. Withdraw only what you need, and pay it back as soon as possible — every day the balance sits on your card, interest accrues.
If the person you are sending to has a bank account, ask them if they can wait a few days. In that time, you may be able to set up a bank account or borrow a debit card from someone you trust. A bank transfer costs nothing and takes 1 to 3 business days. If you cannot wait, the cash advance is your option, but understand that you are paying 3 to 5 percent plus interest for the convenience.
If you find yourself regularly needing to send money and only having a credit card, open a checking account. Most banks offer free checking with no minimum balance. Once you have a debit card linked to that account, you can send money for free using your bank's transfer service, Venmo, or PayPal.
Frequently Asked Questions
Can I send money directly from my credit card to someone else's bank account?
No. Credit cards do not connect to bank accounts the way debit cards do. You would need to take a cash advance, withdraw the cash, and then deposit it into someone else's account yourself — which defeats the purpose. Use a bank transfer or peer-to-peer app instead.
Will my credit card issuer charge me a fee if I use Venmo or PayPal with my credit card?
It depends on the issuer and how they classify the transaction. Venmo charges 3 percent if you link a credit card. Your card issuer may or may not add a cash advance fee on top. Call your card issuer and ask before you send money.
Is it ever cheaper to use a credit card to send money than a bank transfer?
No. Bank transfers and debit card payments have no fees and no interest. A credit card always costs more. The only reason to use a credit card is if you do not have access to a bank account or debit card, and you need to send money when ready.
What happens if I take a cash advance and do not pay it back right away?
Interest starts accruing when ready at your cash advance APR, which is usually higher than your regular purchase rate. If you owe $500 and your cash advance APR is 25 percent, you pay roughly $10 per month in interest alone. The longer you carry the balance, the more you pay.
Can I use a credit card to send money internationally?
Yes, but it is expensive. Western Union and MoneyGram accept credit cards for international transfers, but they charge 5 to 10 percent or more depending on the destination country. Your card issuer may also charge a cash advance fee and foreign transaction fee. If the recipient has a bank account, a service like Wise or OFX is much cheaper.