How to send money with a credit card

You can send money using a credit card via cash advances, peer-to-peer (P2P) payment apps or wire transfers.

While in some situations this might be more convenient than using funds in your bank account, sending money with a credit card may come with a higher price tag.

What you’ll learn:

• Common ways of sending money with a credit card include P2P payment apps like Cash App, PayPal® and Venmo.

• Using a credit card to send money may be considered a cash advance, which may incur additional costs.

• Sending money with a credit card might take anywhere from a few seconds to several days, depending on the card issuer and the method used. 

• If you’re considering sending money with a credit card, it’s important to understand the potential costs and impact on your credit.

You have a few options for sending money to someone else—cash advances, P2P payment apps and wire transfers. But each option may have fees and high interest rates.

To get immediate access to cash, you might use your credit card for a cash advance. This is considered a short-term loan borrowed against your credit card’s credit line. Cash advances can typically be initiated at your bank, using your PIN at an ATM or with a convenience check. 

Cash advances typically have fees and high interest rates attached. And unlike typical credit card purchases, which have a grace period before interest is applied, cash advances begin to accrue interest immediately. You can check your card’s terms and conditions for specifics.

P2P payments generally involve sending money to someone else using money transfer apps and digital wallets. 

Some P2P payment apps let users send money with a linked credit card, though fees may apply. Bank account or app balance transfers, on the other hand, are typically free.

In addition to fees charged by the P2P payment platform, some card issuers consider credit card P2P payments a cash advance. These may come with a higher interest rate than a typical credit card purchase and include a cash advance fee.

Apps that allow you to send money with a credit card include:

A wire transfer typically moves money electronically from one person’s bank account to another. But it may be possible to initiate a wire transfer with a credit card. 

Credit card issuers may consider a credit card wire transfer a cash advance. That means you could pay a wire transfer fee and a cash advance fee. A cash advance may come with a higher interest rate than a typical credit card purchase. Also keep in mind that the recipient may have to pay to receive the transfer.

When sending money with a credit card, it can help to consider the following:

• Review potential costs. Sending money with a credit card is typically more expensive than sending money from a bank account. The fees and interest may cancel out any credit card rewards you might earn. And if the payment is considered a cash advance, the interest will likely accrue immediately.

• Make payments on time. If you decide to send money with a credit card, make sure you have a plan in place to pay off the debt. The Consumer Financial Protection Bureau (CFPB) says you should make your payments on time, every time. That’s because your payment history is an important factor when it comes to your credit scores. 

• Understand how else it might affect your credit. Cash advances can increase your credit utilization ratio, which is the amount of credit you’re using versus your total available credit. The lower your credit utilization ratio, the better your credit scores might be. The CFPB recommends using no more than 30% of your credit limit.

• Talk to your lenders. If you’re thinking about using a cash advance to cover a loan payment, consider talking to your lender about other options.

• Consider the timeframe. Depending on the payment method you’re using and your credit card issuer, it could take anywhere from a few seconds to a few days for the funds to transfer. 

• Explore alternatives to sending money with a credit card. If you don’t need to use your credit card, you could explore other payment method options. For example, Zelle® lets you quickly send money to family and friends for free with a linked bank account or debit card.

Want to know more? Here’s additional information about sending money with a credit card:

You can send money with a credit card in a few different ways. But they might involve fees and high interest rates. And as always, it’s important to exercise caution and use your card responsibly.

If you’re shopping for a new credit card, consider card options from Capital One to find one that meets your needs. You can see whether you’ll be approved with no harm to your credit scores.