How to Send Money From a Credit Card

Sending money from a credit card allows you to access your credit line and transfer funds to another person or entity. This process differs from standard credit card purchases, involving different fees and interest rate structures. Various methods exist for these transactions, each with unique considerations. Understanding these mechanisms and their costs is crucial before initiating a transfer.

Methods for Accessing Credit Card Funds

Individuals can access credit card funds through several methods. Each approach facilitates the movement of money from the credit line but operates distinctly.

Cash advances offer a direct way to obtain physical cash or a direct deposit from your credit card. This can be done at an ATM with your credit card and PIN, by visiting a bank teller, or using convenience checks. Convenience checks are blank checks provided by your credit card company, allowing you to write a check against your available credit limit. They can be used to get cash, pay bills, or transfer a credit card balance.

Balance transfers consolidate debt from one credit account to another, often to take advantage of a lower interest rate. While usually applied between credit cards, some credit card issuers may permit a balance transfer directly into a checking or savings account. This is a less frequent option compared to other methods, but it can provide direct access to funds from your credit line.

Third-party payment services, such as peer-to-peer (P2P) payment apps like PayPal and Venmo, allow users to fund transactions with a credit card. These services act as intermediaries, enabling you to send money to other individuals or pay for services using your credit card. Many online bill payment services also offer the option to use a credit card to cover expenses.

Understanding the Costs of Sending Money

Using a credit card to send money involves various costs that differ from standard purchase transactions. Review your credit card’s terms and conditions to understand the exact figures that apply.

Cash advances usually incur a flat fee, often ranging from 3% to 5% of the advanced amount, or a minimum fee, such as $10, whichever is greater. For instance, a $500 cash advance with a 5% fee would cost $25. Beyond this fee, cash advances are subject to higher Annual Percentage Rates (APRs) than regular purchases, often ranging from 17.99% to 36%.

Cash advances have no grace period. Interest begins to accrue immediately from the transaction date, unlike purchases, which often have an interest-free period if the balance is paid in full by the due date. This means interest starts compounding daily from the moment funds are accessed. Additionally, if a cash advance is obtained from an ATM, separate ATM fees may also apply.

When using third-party payment services like P2P apps, a percentage-based fee is often charged for payments funded by a credit card. For example, Venmo typically charges a 3% fee for sending money using a credit card. PayPal also charges a fee, often around 2.9% plus a fixed fee, such as $0.30, for credit card-funded transactions within the U.S. Credit card issuers often classify these P2P transactions as cash advances, triggering additional cash advance fees and higher interest rates from the card issuer.

Information Required for the Transfer

Before initiating any transfer, gathering the necessary information for both your credit card and the recipient is important. Having all details ready helps ensure a smooth transaction.

You will need your credit card number, expiration date, and security code (CVV). The security code is typically a three or four-digit number found on the back or front of your card. Your full name as it appears on the credit card is also required.

For the recipient, specific details are needed depending on the transfer method. If sending funds directly to a bank account, you will need their full name, bank account number, and the bank’s routing number. The routing number is a nine-digit code that identifies the financial institution and is typically found on checks or through online banking. For P2P apps, the recipient’s email address or phone number, linked to their account, is generally sufficient.

Verify your available credit limit to ensure it covers the transfer amount plus any associated fees. Your credit limit can usually be found on your billing statement or by logging into your online credit card account. Understanding your available credit helps prevent declined transactions.

Executing the Transfer

Once all necessary information is gathered, the transfer process can begin. The steps will vary based on the chosen method for sending money from your credit card.

For cash advances, you can obtain funds directly at an ATM by inserting your credit card and entering your PIN, then selecting the withdrawal option. Alternatively, visit a bank branch and present your credit card to a teller. If you have received convenience checks from your credit card issuer, you can write a check for the desired amount and either cash it or deposit it into your bank account.

When performing a balance transfer to a bank account, you typically initiate this through your credit card issuer. This usually involves logging into your credit card’s online portal or contacting customer service. You will provide the bank account details for deposit, and the issuer will process the transfer directly.

For transfers using third-party payment services, the process involves linking your credit card to the service’s platform. After logging into the app or website, select the option to send money, choose your credit card as the funding source, and enter the recipient’s identifier (such as email or phone number) and the amount. The final step typically involves reviewing the transaction details, including any fees, and confirming the payment.