There are lots of reasons why you might want to send money by credit card. Maybe you need to pay a friend back for dinner, or transfer money from your credit card to your bank account—whatever the reason, today we’re going to show you how to do it!
How to Send Money by Credit Card
We’ve all been there. We needed money, or our friend paid for the whole dinner, and now it’s time to pay them back. But what if you don’t have the money on you because you’re more of a credit card person? Don’t worry—there’s a way of paying a friend back with a credit card, but the transaction won’t go without fees. Various apps allow you to pay back your friends without pulling out your wallet or hitting the ATM. Here are the most common ways to do it:
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Cash App
With the Cash app, you can easily send money with a credit card. Formerly known as Square Cash, this free app can be downloaded from Google Play or Apple Play, but you should keep in mind its transaction fee of 3%. The only downside of the Cash app is that it’s restricted to US and UK only. However, this peer-to-peer (P2P) app is great for investors.
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Venmo
Although it’s a newer service, Venmo is becoming increasingly popular. The service only requires you to log in either with Facebook or your email, and the great thing about it is that you can send money with a credit card at no fee. However, there are downsides: the funds can take from a few hours to a few days to show up in your friend’s account, and both of you need to have the Venmo app for the transaction to go through.
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PayPal
One of the most popular and probably the oldest methods of sending and requesting money electronically, PayPal is quick and easy to use (although it may hold your money for various reasons). If both you and your friend have a PayPal account, all you need to transfer money from your credit card to their PayPal account instantly is your friend’s email address or phone number. If you’re wondering how to send money with a credit card to a friend, PayPal is a great option, although there are fees involved—typically around $0.30 + a small percentage of the total amount (and more if there’s currency conversion).
| Did you know: In 2021, PayPal announced gaining 426 million users. |
How to Transfer Money From Credit Card to Debit Card
There are a few different reasons why you might want to transfer money from your credit card to your debit card, like trying to build up your credit score or needing money in your bank account right away. No matter the reason, here’s how to do it:
First, you’ll need to find out if your credit card issuer offers balance transfers. If they do, you’ll need to request a balance transfer form and send it back to the issuer after filling it out. After the issuer approves the transfer, they will notify your bank—and that’s it on how to transfer money from credit card to debit card! However, you may have to pay a balance transfer fee, which is typically 1%–5% depending on the amount you transfer. The money will usually show up in your account within a few days.
Key Takeaways
| PayPal and Cash app allow you to transfer money from your credit card, but with a fee. |
| Venmo is a great app for person-to-person credit card payments and requires no fees. |
| To transfer money from a credit card to a debit card, you first need to see if your credit issuer offers balance transfers. |
| Once the form is approved, you can transfer money from credit to debit card. |
Transfer Money From Credit Card to Bank Account
We’ve all been in a bind where we needed money instantly, and one of the few ways to get it in such a situation is to transfer money from your credit card to your bank account, which can be successfully done in various ways. Let’s see what some of them are:
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Cash Advance
The most common way to transfer money from your credit card to your bank account is through a cash advance. Although cash advances resemble personal loans in many ways, with a cash advance, you borrow money from yourself in a way. If you want to send money from a credit card to a bank account instantly, you can do so by a cash advance on most ATM machines using your credit card and PIN number, as well as a form of identification. Once you’ve withdrawn the cash, it will be deposited into your bank account. However, there are usually hefty fees associated with cash advances. Your credit issuer typically charges 3%–5% of the total cash advance amount you request.
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PayPal
Another way to transfer money from a credit card to a bank account is through PayPal. If you have a PayPal account, you can transfer money from a credit card to a bank account instantly simply by logging in and clicking on the “transfer” option. This is a great way to avoid those pesky ATM fees!
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Venmo
Venmo is a great money transfer app that can be used for transferring money from your credit card to your bank account. The app is free to download and use, and it only takes a few seconds to set up. Once you’ve linked your credit card and bank account, you can transfer money in just a few taps. The only downside is that there are fees involved—there’s a standard 1.5% fee (with a minimum fee of $0.25 and a maximum fee of $15 per transfer).
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Amazon Pay
Another great option to send money from a credit card to a bank account is Amazon Pay. By adding your credit card and bank account information to your Amazon account, you can transfer money in just a few clicks. The fees are usually around $0.30 + a small percentage of the total amount you’re transferring.
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Square Cash App
If you’re looking for a way to send money from a credit card to a bank account instantly, the Square Cash App is a great option. Once you’ve linked your credit card and bank account, you can transfer money in just a few taps.
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Money-Transfer Services
You can also use a money transfer service like Western Union or MoneyGram. These services are typically found at local convenience stores, and they allow you to easily transfer money from your credit card to your bank account without having to go through a bank. As there’s rarely an option to send money from a credit card to a bank account free of charge, these services often charge high fees, so it’s important to do your research and compare prices before choosing one.
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Convenience Checks
If you’re looking for another way to transfer money from your credit card to your bank account, you might want to consider using convenience checks, which are just like regular checks but pre-approved by your credit card company. This means that you can use them to withdraw cash from an ATM or make a purchase at a store. The downside is that there are transaction fees associated with using convenience checks—typically 3% or 4% of the check amount.
| Did you know: Frequent transfers from your credit card to the bank account may alert the tax department to keep a close eye on you, so try not to send money from a credit card to a bank account that often. |
Conclusion
As you can see, there are a few different ways of sending money by credit card. Each option has its own set of pros and cons, so it’s important to do your research and choose the one that’s right for you. Hopefully, this article served as a great guide on different ways to send money with your credit card.
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