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Maybe a family member loaned you money, or your buddy covered your lunch. If you need to pay someone back but don’t have cash on hand, you have options.
You can send money using a payment app connected to your credit card, such as Venmo, Cash App, and PayPal. You may also be able to send money directly from your card, depending on your issuer.
The downside? You may have to pay fees. Here’s what you need to know about sending money with a credit card.
Ways to send money with a credit card
If you need to repay a friend or a merchant doesn’t accept cards, you have some options. Not all of the options are the best for you, however.
Cash advance
A cash advance allows you to withdraw funds from an ATM using your credit card instead of a debit card. If you want cash quickly, you can find an ATM, insert your credit card, and make a withdrawal. You’ll then pay back the money you withdrew with interest.
A cash advance, though, is never a good idea. They’re often very expensive.
Most credit cards charge a cash advance fee, around 5% of the amount or $10, whichever is more.
Cash advances also come with higher interest rates, typically between 20%-25% APR. There’s also no grace period, which means interest will begin accruing immediately.
If you use cash advances and don’t pay them off, you can rack up plenty of extra interest payments.
While cash advances may seem like a quick solution to pay someone, looking for more affordable alternatives is probably smarter. Only use cash advances sparingly for unavoidable emergencies — if at all.
Peer-to-peer payment apps
The easiest way to send money to someone with a credit card is through a peer-to-peer payment app like Cash App, PayPal, or Venmo.
These apps allow you to link your bank account and transfer money directly to another user. You can also often link your credit card to send money directly from plastic. When it’s time to send money, you then select your credit card in the app before sending funds.
The advantage of these apps is that recipients get instant access to funds without waiting on a check or money order. The downside? Most apps charge a percentage-based fee for credit card payments.
Always know the terms before transferring money through an app, so surprise charges don’t catch you off guard. Here’s a breakdown of the most popular P2P apps that accept cards.
PayPal
You can connect a credit card to your PayPal account and send money to others using your card. But PayPal charges a transaction fee of 2.9% of the amount you send plus $0.30 when using your credit card (or debit card). This even includes PayPal’s Cashback card.
For example, if you send $50 to a friend, you’ll pay $1.75 in fees to send money with your credit card.
PayPal doesn’t charge any fees for sending money from your bank or PayPal balance (as long as you’re within the US).
Venmo
Venmo is another popular peer-to-peer payment app. As with PayPal and Cash App, you can connect your credit cards and use them to send money through the app. Not surprisingly, Venmo charges a fee for this, too. You’ll pay a 3% transaction fee.
Using your bank account balance or debit card to send money to others is free.
If you have the Venmo Card, you can send or receive money directly using the QR code on your card.
Cash App
You can also connect a credit card to the Cash App and use the app to send money from that card. Again, this isn’t free. Cash App charges 3% of the amount you send when you pay someone with a connected credit card.
Any payments sent from a debit card or bank account are fee-free.
While using payment apps is the easiest way to send money with your credit card, it can also be expensive. The fees aren’t as exorbitant as taking out a cash advance, but they can still add up.
The smarter move is to use your debit card or bank account to avoid transaction fees when sending money with an app.
Wire transfers
A wire transfer is a way to send money electronically from one person to another using a bank or a company like Western Union or MoneyGram.
Completing a wire transfer is easy. You provide the company arranging the transfer with your credit card information, the amount of money you want to transfer, and the bank account information of the person receiving the money.
The downside is that credit card wire transfers are often treated as cash advances and have the same fees and interest. For example, if you sent $100 to your friend using a credit card via MoneyGram, you’d pay $6.49 in fees.
Some banks even charge an added domestic or international wire transfer fee, ranging from $0 to $50.
Amex Send & Split
If you’re an American Express cardholder, you have another option. You can send money to friends or family members by using the Amex Send & Split feature in the Amex app.
With this feature, you can send money to any PayPal or Venmo user without paying the transaction fee that you’d normally pay when using a credit card to send money. You can sign up for this feature by logging into the Amex app and selecting the “Send & Split” option.
This is the rare way to send money with a credit card without paying any transaction fees. Of course, this isn’t an option if you don’t have an American Express card.
Alternatives to sending money with a credit card
Not all credit cards make it easy to send money or allow it. Because sending money with a credit card is expensive, looking for other ways of sending cash to friends, family members, or vendors is smart. Fortunately, there are options.
You can use any of the apps already mentioned – Cash App, PayPal, and Venmo – by connecting them to your bank account or debit card. If you do, sending money with these apps is free, unlike using a credit card.
These apps don’t let you send money with a credit card but do let you link your bank account or debit card.
Zelle is a popular peer-to-peer payment app that lets you link a bank account or debit card. Once you do, you can send money to anyone with no charges. This app does not let you use a credit card to send money.
You can also use Apple Cash, another peer-to-peer app, to send money. You can use any balance in your Apple Cash account (via your Apple card) or a linked debit card to send funds. Apple Cash doesn’t charge any fees to send money. Like Zelle, you can’t use a credit card to send money with Apple Cash.
With Google Pay, you can send money through a linked debit card or bank account. This app also charges no fees for sending money. Like the other two options, Google Pay doesn’t allow users to send funds with a credit card.
The bottom line
You can send money to others with a credit card. That doesn’t mean it’s a good idea. Sending money with a credit card always comes with extra fees. That’s why it makes sense to use an alternative way of sending money – like payment apps that connect to your bank account or debit card – that don’t charge fees.
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