How to Send Money With a Credit Card Online

Sending money online with a credit card offers a convenient solution for various financial needs. While direct transfers from a credit card to a bank account are generally not possible, third-party services facilitate this process. These services charge your credit card and then disburse the funds, bridging the gap between credit availability and the need for liquid funds.

Preparing for Online Credit Card Transfers

Credit cards do not directly transfer funds between bank accounts. Instead, online money transfer services and peer-to-peer (P2P) payment applications act as intermediaries. These services charge your credit card for the amount you wish to send, often adding a transaction fee, and then send the money from their own accounts to the recipient.

Before initiating any transfer, gather specific information. This includes the recipient’s full name, contact information (email or phone number), and bank account details if sending to a bank. For P2P app transfers, you will need the recipient’s account details for that platform. Your credit card information, including the card number, expiration date, and security code, is also necessary.

You must have an established account with the chosen money transfer service or P2P app. Many services require identity verification upon account creation, which involves providing personal details and uploading identification documents. Understand the service’s terms and conditions regarding credit card use, as these outline restrictions, fees, or how the transaction will be classified by your credit card issuer.

Executing Online Credit Card Transfers

After gathering information and setting up your account, log into your chosen P2P payment application or online money transfer service. Most platforms feature a “Send Money” or “Pay” option on their main interface to start the transaction.

Next, accurately enter the recipient’s details, which may vary by service and delivery method. This involves inputting their name, email, phone number, or username within the platform. If funds go to a bank account, provide their bank name, account number, and routing information. Double-check these details to avoid sending funds to the wrong party.

After inputting recipient information, specify the amount to send. The platform will prompt you to select your linked credit card as the funding source. If your credit card details are not saved, you will enter them. Some services offer an option to save your card for future transactions.

Before finalizing the transfer, a summary screen will display the amount, applicable service fees, and total charge to your credit card. Review this information carefully for accuracy and to understand the full cost. Finally, confirm the transfer, often requiring an additional security step like a one-time password or biometric authentication.

Financial and Practical Considerations

Sending money with a credit card online involves various fees that increase the total cost. Online money transfer services commonly charge a transaction fee, ranging from 2.9% to 5% of the amount sent. Your credit card issuer may also impose a cash advance fee, as these transactions are often classified as cash advances rather than standard purchases. Cash advance fees usually range from 3% to 5% of the transaction amount or a flat fee, such as $10, whichever is greater.

Beyond initial fees, cash advances accrue interest immediately, without the grace period offered for purchases. The Annual Percentage Rate (APR) for cash advances is higher than for regular purchases, leading to increased costs if the balance is not paid off quickly. Consult your credit card agreement for specific cash advance terms.

Online money transfer services and credit card issuers set limits on how much money you can send. These limits can be daily, weekly, or monthly, varying by service, account verification level, and fund destination. Some services have per-transaction limits of several thousand dollars, with higher overall limits for fully verified accounts.

Delivery times for online credit card transfers vary significantly. Transfers to other users within the same P2P app might be nearly instantaneous. However, transfers to a bank account can take from a few minutes to several business days, especially for international transactions, due to varying bank processing times, time zones, and holiday schedules.

For security, use reputable money transfer services and always verify recipient details before sending funds. Enabling two-factor authentication provides an extra layer of protection, requiring a second verification step beyond your password. Avoid public Wi-Fi networks for financial transactions and regularly monitor your account activity to safeguard your money.