Using your credit card
How to Send Money With a Credit Card contents
It’s possible to send money with a credit card using a mobile app, money transfer service, or cash advance.
Most money transfer apps charge a transfer fee for using a credit card.
Some credit cards companies treat money transfer app payments as cash advances, resulting in additional fees and the immediate accrual of interest.
Did you know it’s possible to send money with your credit card? This could be useful the next time you want to send money to a family member on their birthday or split the dinner bill with friends.
There are several simple and convenient methods you can use to transfer cash with a credit card. Each includes different fees and features.
There are a variety of apps and online services that allow you to send money online using a linked credit card. Some popular money sharing apps include Cash App, PayPal, and Venmo.
Take note: Your credit card company might treat payments from these apps as cash advances, resulting in additional fees and the immediate accrual of interest.
With each of these money transfer services, you can expect to pay a transfer fee which will vary on a few conditions:
Both transfer services allow you to estimate how much your fees will cost before you start a money transfer.
If you need immediate access to money but don’t have savings to tap into, you can also use your credit card for a cash advance.
While a cash advance is one of the more convenient ways to get fast access to cash, it can also be expensive.
Did you know?
Some credit cards, like Discover, may allow for cash advances into eligible checking accounts, from an ATM, or directly from authorized banks and credit unions.
Yes, when sending money with a credit card, you can expect to pay fees. In some cases, there will also be a higher interest rate on paying it back.
Some credit card companies treat money sent from your card through an app or money transfer service as a cash advance. So, on top of any transfer fees charged by the app or service, you may also have to pay a cash advance fee. This is usually a percentage of the total amount of your transaction (which could be 3% or 5%), or a flat fee (usually around $10) whichever is greater. If you use an ATM to take out a cash advance, you might also have to pay additional ATM fees.
In many cases, a cash advance will require you to pay an interest rate higher than what you pay for credit card purchases. Look at your latest credit card statement to find out the exact rate.
In addition, unlike regular credit card transactions, cash advances don’t have a grace period before charging interest. A grace period is the time between the end of your billing cycle and the date your payment is due—typically a period of 21 days. When you use your credit card for a cash advance, you’ll likely start to accrue interest on the day of the transaction.
On many credit cards, the withdrawal limit for a cash advance is lower than your overall credit limit. This amount can vary depending on the terms of your credit card issuer as well as your total available credit at the time. To determine your credit card cash advance limit, you can contact your credit card company directly using the number on the back of your card.
There are several ways to send money from your credit card, and there are pros and cons to consider for each. If you haven’t any available savings but you really need to get money to a family member or friend, then using your credit card to transfer money can provide a quick option. However, each transaction comes with a cost. To avoid any unexpected fees or extra interest charges, research your options before you start sending money with your credit card.
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Legal Disclaimer: This site is for educational purposes and is not a substitute for professional advice. The material on this site is not intended to provide legal, investment, or financial advice and does not indicate the availability of any Discover product or service. It does not guarantee that Discover offers or endorses a product or service. For specific advice about your unique circumstances, you may wish to consult a qualified professional.
