Can You Transfer Money From Card to Card?

Transferring money from one card to another often differs from what many might initially assume. While direct card-to-card transfers between different financial institutions are not a standard consumer service, various methods allow individuals to move funds that ultimately involve cards. This article explains practical ways to facilitate such transfers and important factors to consider.

What “Card-to-Card” Transfers Entail

Direct card-to-card transfers, such as sending money directly from a debit card issued by one bank to a debit card from a different bank without an intermediary, are not a standard feature offered by most financial institutions. The concept of “card-to-card” refers to transactions where a card is used as a funding source or a destination for funds, rather than a direct transfer between card numbers alone. These transfers rely on third-party payment services, specific financial products, or indirect methods.

The primary mechanism involves using a linked bank account, a digital wallet, or a specialized card product to bridge the gap between different card issuers. This distinction is important for understanding the methods available.

Common Methods for Moving Funds

Peer-to-Peer (P2P) Payment Apps

Peer-to-peer (P2P) payment applications offer a prevalent way to send money using cards, even if indirectly. Users download the app and link a funding source such as a debit card, bank account, or sometimes a credit card. Verification steps, which may involve small deposits or linking to online banking, are required during initial setup.

Once an account is established and a card is linked, sending money involves selecting a recipient, entering the amount, and initiating the transfer. The recipient receives the funds within their P2P app balance, which they can hold in the app or transfer to their linked bank account or debit card. While transfers between app users are often instant, moving funds from the app to a bank account can take one to three business days for standard transfers; instant transfer options are available for a fee.

Credit Card Balance Transfers

Credit card balance transfers are a specific method for moving debt from one credit card to another, rather than moving cash. This process is initiated to consolidate debt or take advantage of lower interest rates. To perform a balance transfer, an individual applies for a new credit card or uses an existing card’s balance transfer feature, providing the account details of the credit card from which debt will be moved.

Once approved, the new card issuer pays off the specified balance on the old card, and that amount, along with a transfer fee, is added to the new card’s balance. Balance transfer fees range from 3% to 5% of the transferred amount, with some minimums. The transfer process can take a few days to several weeks, with some issuers completing it within five to seven days, while others might take up to six weeks.

Prepaid Card Reloads/Transfers

Reloadable prepaid cards allow funds to be added from various sources, including other debit or credit cards. Checking the specific prepaid card’s terms and conditions is important, as not all cards support all reload methods or have the same fee structures. Many reloadable prepaid cards are branded by major payment networks such as Visa or Mastercard, enabling their use at any location accepting those card types.

Funds can be reloaded online via a portal, through a mobile app, or at participating retail locations. While direct debit or credit card reloads may be available online, cash reloads at retail locations might incur fees ranging from no cost up to $3.95. Some prepaid cards also offer card-to-card transfer options, though these may involve fees.

Cash Advance and Subsequent Deposit

A cash advance involves withdrawing cash directly from a credit card, which is an indirect and expensive way to obtain funds. This method incurs high fees and immediate interest charges, as there is no grace period for cash advances. Credit card companies charge a cash advance fee of 3% to 5% of the advanced amount, or a minimum flat fee, whichever is higher, and the annual percentage rate (APR) for cash advances is higher than for purchases.

After obtaining the cash, it can be deposited into a bank account linked to another card or, if the card supports cash deposits, directly onto certain reloadable prepaid cards. This is not a direct card-to-card transfer but rather a two-step process that uses a credit card to access cash, which is then moved to another card-linked account. Due to the significant costs, this method is considered a last resort.

Key Factors to Consider

Several factors influence the efficiency and cost of moving funds that involve cards. Fees are a primary consideration, varying significantly by method. P2P apps charge fees for instant transfers or when using a credit card as a funding source, around 1% to 3% of the transaction amount. Credit card balance transfers include a fee of 3% to 5% of the transferred amount. Cash advances are among the most expensive options, with fees ranging from 3% to 5% of the amount, plus immediate, higher interest accrual.

Transfer limits are another important aspect, as most services and card products impose daily, weekly, or monthly restrictions on the amount of money that can be sent or received. These limits can vary based on the platform, user verification status, and the type of transaction. Processing times also differ; P2P transfers within an app can be instant, but moving funds to an external bank account may take one to three business days, and balance transfers can take days to weeks.

Security and verification protocols are important to protecting transactions. P2P apps and other financial platforms employ measures such as multi-factor authentication, encryption, and fraud detection algorithms to safeguard user data and funds. Adhering to best practices, such as enabling all available security features and verifying recipient information carefully, helps mitigate risks associated with digital money transfers.