What Apps Can You Send Money With a Credit Card?

Sending money to others often involves quick and convenient digital applications. While direct credit card transfers between individuals are not a standard feature, certain mobile applications facilitate this process by allowing users to fund transfers using their credit cards. These platforms act as intermediaries, processing the credit card payment and then disbursing funds to the intended recipient. Understanding how these services operate, their associated costs, and the implications for your credit card is important for informed financial decisions.

Apps for Sending Money with a Credit Card

Several widely used mobile applications enable users to send money using a credit card. PayPal allows users to link a credit card as a funding source for sending money to friends and family. Venmo also supports credit card funding for peer-to-peer transfers. Cash App provides the option to use a linked credit card to send funds to other users. Services like Western Union and Remitly also offer credit card payment options for money transfers.

These applications integrate your credit card details into their payment system. When you initiate a transfer, the app processes the charge to your credit card. Applications like Zelle typically do not support credit cards as a funding method, instead requiring a linked bank account or debit card for transfers.

Mechanism and Associated Costs

When using a credit card to send money through a mobile application, you link your credit card to your app account and select it as the funding source. The app then processes the transaction, and funds are sent to the recipient’s account within the application or their linked bank account. This convenience comes with specific fees charged by the payment applications.

Most apps charge a percentage-based fee when a credit card is used, as opposed to using a linked bank account or debit card, which are often free for standard transfers. For instance, PayPal typically charges 2.9% plus a fixed fee of $0.30 for domestic transactions. Venmo and Cash App commonly impose a 3% fee for sending money via a linked credit card. These fees are generally passed on to the sender and cover processing costs associated with credit card transactions, such as interchange fees paid to credit card networks and issuing banks.

Key Considerations for Credit Card Transactions

Using a credit card for money transfers involves several factors beyond the app’s direct fees. Credit card issuers may classify these transactions as cash advances. A cash advance typically incurs a separate fee from the credit card issuer, often a percentage of the transaction amount (e.g., 3% to 5%) or a flat minimum fee. Interest on cash advances usually begins accruing immediately from the transaction date, without the typical grace period for purchases.

The impact on your credit score from using these apps for money transfers is generally indirect. While sending money itself does not directly appear on your credit report or affect your score, increased credit utilization from a large transfer could influence your score. High balances relative to your credit limit can negatively affect your credit utilization ratio, a factor in credit scoring. These transactions typically do not earn credit card rewards, as cash advances are often excluded from reward programs. Apps and credit card issuers also impose transaction limits.

Common Applications for Credit Card Transfers

Using a credit card for money transfers through an app can be a practical solution in specific circumstances, despite the associated costs. It offers immediate access to funds, valuable during unforeseen emergencies or when other funding sources are unavailable. For example, if cash or debit card funds are low, a credit card can bridge a short-term financial gap to cover urgent expenses.

Another common application is splitting expenses with friends or family, such as rent, utilities, or dining bills, when immediate payment is required and alternative methods are not feasible. While not ideal for routine transactions due to fees, the ability to quickly send money via a credit card provides flexibility in situations demanding prompt financial action.