Where Can I Send Money With a Credit Card?

It is possible to send money using a credit card, though credit cards are primarily designed for direct purchases. Individuals may consider this option for convenience, especially in urgent situations, or to manage cash flow. While not always the most cost-effective method, various services offer this capability.

Sending Money Through Payment Apps

Peer-to-peer (P2P) payment applications enable individuals to transfer funds digitally to one another. Popular P2P platforms, such as PayPal, Venmo, and Cash App, allow users to link a credit card as a funding source for transactions. To initiate a transfer, users typically link their credit card to the app by providing the card number, expiration date, CVV, and billing zip code.

Once the credit card is linked, users can send money by entering the recipient’s username, phone number, or email address, along with the desired amount. These apps generally impose a percentage-based fee for credit card transactions, typically ranging from 2.9% to 3% of the transfer amount. For example, PayPal charges a 2.9% processing fee plus a fixed fee of $0.30 for credit card transactions, while Cash App and Venmo typically charge a 3% fee. Processing times for these transfers can range from immediate to several business days.

Sending Money Via Dedicated Transfer Services

Dedicated money transfer services, like Western Union and MoneyGram, facilitate sending money, including internationally. These services allow transfers to be initiated online, through their mobile applications, or in person at agent locations. Senders typically provide their full name, address, and identification, along with the recipient’s full name, address, and either bank details for direct deposit or a pick-up location for cash collection.

Delivery methods include cash pickup or direct bank deposit, with processing times varying from minutes for card payments to several business days for bank transfers. These services generally charge fees for credit card payments, which can vary based on the amount sent, destination country, and chosen delivery method. For instance, a transfer might incur a fee of $4.99 for a cash pickup paid by credit card, with fees potentially increasing for larger amounts or specific corridors.

Using Credit Cards for Bill Payments

Many service providers and businesses, such as utility companies, landlords, or educational institutions, directly accept credit card payments for bills. This allows individuals to manage their expenses and potentially earn credit card rewards. When direct payment is not an option, third-party services like Plastiq or PayNearMe can be utilized to facilitate payments. These platforms enable users to pay bills with a credit card, and the service then remits the funds to the biller via electronic transfer or check.

Convenience fees are commonly associated with credit card bill payments, whether made directly to the biller or through a third-party service. These fees typically range from 2% to 3% of the transaction amount, though they can sometimes be a flat fee. For example, Plastiq generally charges a 2.9% fee for credit card payments. Payment posting times can vary, though most online payments are processed efficiently.

Key Considerations When Sending Money

Using a credit card to send money involves several financial implications that warrant careful consideration. Transaction fees are a primary cost; payment apps and transfer services typically charge a percentage of the amount sent, often between 2.9% and 3%.

A significant consideration is that many credit card issuers classify money transfers, especially those through P2P apps or dedicated transfer services, as cash advances. Cash advances incur a specific fee, usually 3% to 5% of the transaction amount or a flat minimum like $10, whichever is greater. Unlike standard purchases, cash advances do not typically have a grace period, meaning interest begins to accrue immediately from the transaction date, often at a higher Annual Percentage Rate (APR) than the rate for purchases.

Such transactions also impact a credit card’s available credit and can affect credit utilization, which is a factor in credit scoring. High credit utilization, particularly from cash advances, can temporarily lower a credit score. Additionally, both credit card issuers and money transfer services often impose daily or per-transaction limits on the amount that can be sent, which may restrict larger transfers.