Are you looking for an easy way to send money to someone? It’s stressful trying to figure out the best way to get your money where it needs to go, but thanks to today’s technology, sending money is easier than ever. Gone are the days of sending wire transfers or waiting in long lines at the bank. You can use your credit card in several ways to send money. Read on to learn exactly how and to discover which method is best for you.
Can you send money with a credit card?
You can send money using a credit card. It’s a convenient and safe option, but it’s not necessarily the cheapest route. Before sending money, be aware there may be fees associated with the transaction. Some credit card companies view these transactions as cash advances. Check with your credit card company to learn about any associated fees.
Ways to send money with a credit card
You have a few options when sending money with a credit card. The fees and processing times vary depending on the method.
Transfer funds from your credit card to your bank account
One option is to transfer money from your credit card directly to your bank account. Some issuers allow you to transfer money from the card to your checking account directly, but others may require an extra step in the process.
Some credit card issuers send convenience checks that allow you to write a check from your credit card and deposit it into your bank account.
If your credit card has a PIN, you can also use your credit card at the ATM to take out cash and then make the deposit.
Money transfer service
Money transfer service providers allow you to send money both domestically and internationally. Many of these services allow you to use a credit card to transfer funds. Payments are usually instant and done directly from a mobile app. These companies often charge a service fee equal to a percentage of the transfer, but some are totally free.
Peer-to-peer apps
Peer-to-peer apps like Venmo, Cash App, and PayPal all allow you to send money with your credit card.
Venmo and Cash App are free if you use your debit card, but they charge a 3% fee when you use a credit card.
PayPal charges 2.9% plus 30 cents to send money to friends and family with a credit card. This method isn’t typically categorized as a cash advance by issuers, so it’s a good way to avoid additional fees.
Other ways to send money
Although a credit card is a good way to send money if you’re short on funds, there are some other options that can save you money.
ACH transfer
You can send money directly to someone’s bank account from yours using an Automated Clearing House (ACH) transfer. To start, sign into your banking app or website and choose ACH transfer from the transfer options. You’ll need the other person’s account number and routing number, which can usually be found on their check or through their banking info page. After entering those details, double-check everything and hit submit. Your recipient should receive the funds within one to three days, depending on their bank. It’s one of the cheapest ways to send money but not the fastest.
Wire transfer
Wire transfers involve making an electronic transaction through an intermediary like a bank or investment platform. They’re a safe and secure way to send large amounts of money to someone else fast. Funds are available as soon as the transfer is complete. Wire transfers can be expensive, with banks charging a flat fee of $15 to $50 on average.
Personal checks
If there’s no rush, you can use a personal check to send someone money. Although mailing checks is safe, you’ll probably want to hand someone the check directly if it’s for a large amount. The recipient can cash the check at their bank, your bank, or a check cashing company. They can also deposit the check into their account and wait for it to clear.
Bottom line
Sending money with a credit card is an option, but it’s often more expensive than alternative methods. If you don’t have the money in your bank account, using a credit card may be the best option for you. Carefully consider the interest rates and any fees the credit card company charges. Remember that it could be viewed as a cash advance and the interest rates will be much higher.
FAQ
Can you use your credit card to transfer money to someone?
You can use your credit card to transfer money to someone, but you’ll need to use a service or an app.
Can you transfer money from your credit card to someone’s bank account?
You can transfer money from your credit card to someone’s bank account using peer-to-peer apps. If you transfer funds from the credit card to your bank, you can do an ACH transfer.
Can you get instant cash from a credit card?
You can instantly get cash from a credit card at an ATM. This method is considered a cash advance.
