How to Send Money With a Credit Card

Credit cards can send money, but not the way you might think

A credit card is not a direct money transfer tool. You cannot type in someone's account number and send them cash the way you can with a bank transfer or payment app. What you can do is use your credit card to fund a payment through a third-party service — a money transfer app, a wire service, or a cash pickup location — and that service then delivers the money to the recipient. The catch: most of these services charge a fee, and your credit card company may treat it as a cash advance rather than a purchase, which means higher interest rates and immediate fees.

The practical reality is that credit cards work best for paying bills or buying things, not for sending money to people. But if you need to send money and a credit card is your only option, there are real ways to do it — you just need to understand what each method costs and how long it takes.

Key Takeaways

• Money transfer apps like PayPal, Wise, and Remitly accept credit cards but charge higher fees than bank transfers do, and some treat the transaction as a cash advance.
• Wire services like Western Union and MoneyGram let you send money via credit card, but fees typically run 5 to 10 percent of the amount sent.
• Your credit card company may charge a cash advance fee (usually 3 to 5 percent) on top of the service fee, plus interest that starts accruing immediately.
• Bank-to-bank transfers and payment apps that link to your checking account are cheaper and faster than credit card transfers for most situations.
• International transfers via credit card cost significantly more than domestic ones and should only be used when no other method is available.

Money transfer apps that accept credit cards

PayPal, Wise, Remitly, and similar apps all let you link a credit card and send money. The process is straightforward: you create an account, add your credit card, enter the recipient's details, and confirm the transfer. The money usually arrives within one to three business days for domestic transfers, or three to five days for international ones.

The cost structure is where credit cards become expensive. PayPal charges 2.2 percent plus $0.30 for domestic transfers funded by credit card, compared to free transfers from your bank account. Wise charges a percentage based on the currency pair (typically 0.5 to 2 percent) plus a small fixed fee, but does not charge extra for credit card funding — though your card issuer might. Remitly charges a flat fee (usually $2 to $3 for domestic transfers) plus a percentage for international transfers.

The real problem is that your credit card company may classify this as a cash advance. If it does, you will pay a cash advance fee (typically 3 to 5 percent of the amount) on top of the app's fee, and interest starts accruing immediately at a higher rate than purchase interest. You can call your card issuer before sending to ask whether they treat money transfer apps as cash advances — some do, some do not, and it varies by app.

Wire services like Western Union and MoneyGram

Western Union and MoneyGram are the oldest money transfer networks in the world. You can walk into a participating location (grocery stores, pharmacies, check-cashing shops) with your credit card, give them the recipient's information, and they send the money. The recipient can pick it up at another location or have it deposited to their bank account, depending on the service and destination country.

Fees are steep. Western Union charges roughly 5 to 10 percent of the amount sent for domestic transfers, depending on how fast you need it and whether the recipient picks it up or receives it by bank deposit. MoneyGram charges similarly. For a $500 transfer, you might pay $25 to $50 in fees alone. Add a cash advance fee from your credit card company, and the total cost climbs quickly.

The advantage is speed and availability. Money can arrive within minutes if the recipient picks it up at a location, or within one to two business days if it goes to a bank account. This makes wire services useful for emergencies, but expensive for routine transfers.

Cash advance fees and interest rates

When your credit card company treats a money transfer as a cash advance, two things happen immediately. First, you pay a cash advance fee — usually 3 to 5 percent of the amount, charged to your account right away. Second, interest starts accruing on that amount at your card's cash advance rate, which is almost always higher than your purchase rate. Some cards charge 25 to 30 percent APR on cash advances, compared to 15 to 20 percent on purchases.

Unlike purchases, cash advances do not have a grace period. Interest starts the day you make the transfer. If you carry a balance, the interest compounds daily. A $500 transfer with a 4 percent cash advance fee ($20) plus 28 percent APR interest costs you $20 upfront, then roughly $11.67 per month in interest if you do not pay it off immediately.

The only way to avoid this is to pay off the cash advance in full as soon as possible, or to use a method your card issuer does not classify as a cash advance. Calling your card company before you transfer is the only way to know for sure.

When to use a credit card instead of other methods

Credit cards should be your last resort for sending money, not your first choice. If you have access to a checking account, a bank transfer or payment app linked to that account is almost always cheaper and faster. Zelle, for example, is free and transfers money within minutes if both parties use participating banks. ACH transfers from your bank are also free and take one to three business days.

Use a credit card only when you do not have a bank account, when the recipient is in a country where bank transfers are not practical, or when you absolutely need the money to arrive within hours. Even then, compare the total cost — the app fee plus the cash advance fee plus the interest — against the cost of a wire service or international transfer service. Sometimes paying a higher upfront fee to avoid cash advance interest is the smarter choice.

If you are sending money internationally, services like Wise or OFX (which accept credit cards) often cost less than Western Union or MoneyGram, even with the cash advance fee, because they use real exchange rates instead of marked-up ones.

How to minimize fees when you must use a credit card

If you have decided a credit card is your only option, take these steps to keep costs down. First, call your card issuer and ask whether they treat money transfer apps as cash advances. If they do, use a wire service instead — you will pay a higher upfront fee but avoid the cash advance interest. If they do not, use the app with the lowest percentage fee.

Second, send the full amount in one transfer rather than multiple smaller ones. Each transfer incurs its own fee, so combining them saves money. Third, pay off the balance immediately if your card company does charge a cash advance fee. Every day you carry that balance, interest accrues at a high rate.

Third, check whether the recipient can receive money via bank deposit rather than cash pickup. Some services charge less for bank deposits because they process them in batches rather than on demand. Fourth, avoid sending money on weekends or holidays — transfers initiated then may not process until the next business day, which extends the time your card company charges interest.

Frequently Asked Questions

Can I send money with a credit card to someone without a bank account?

Yes. Wire services like Western Union and MoneyGram let the recipient pick up cash at a physical location without a bank account. Money transfer apps require the recipient to have a bank account or a mobile wallet linked to one. If the recipient has neither, a wire service is your only option.

How long does it take to send money with a credit card?

Domestic transfers via money transfer apps typically take one to three business days. Wire services can deliver cash within minutes if the recipient picks it up at a location, or one to two business days if it goes to a bank account. International transfers take longer — usually three to five business days — and depend on the recipient's bank.

Will my credit card company charge me a cash advance fee?

It depends on the service and your card issuer. Some treat money transfer apps as regular purchases with no cash advance fee; others treat them as cash advances. Call your card company before you transfer to confirm. If they do charge a cash advance fee, it is typically 3 to 5 percent of the amount sent.

Is it cheaper to send money with a credit card or a wire service?

For most transfers, a wire service is more expensive upfront but may be cheaper overall if your credit card company charges a cash advance fee and interest. Compare the total cost: the app fee plus any cash advance fee plus estimated interest, versus the wire service fee. For international transfers, money transfer apps designed for that purpose (like Wise) are usually cheaper than Western Union.

Can I send money internationally with a credit card?

Yes, but it is expensive. Money transfer apps and wire services both accept credit cards for international transfers. Fees are typically higher than domestic ones — often 5 to 10 percent or more — plus your card company may charge a cash advance fee and interest. For large international transfers, a service like Wise that specializes in currency exchange often costs less than a general wire service.