Yes, you can send money overseas using a credit card. But it can be really expensive depending on how you do it. Learn how to make a credit card remittance, and find out about some cheaper alternative options. You can often do it through your bank, PayPal or Western Union. It’s
best to avoid using a credit card to transfer money for several reasons: Most of us have credit cards, and they’re a convenient way to buy now and pay later. In some cases, credit cards can be used to transfer money internationally. It’s vital to
understand the fees, charges and fine print so you don’t end up paying too much. In this article we’ll explore:Using a credit card to send money overseas
What we will cover
So, when should you use a credit card to transfer money overseas?
It is possible to send money overseas with a credit card, but the fees and charges make it more expensive than most other methods.
When you might want to use a credit card
There are some situations where you might want to use a credit card to send money:
- If you’re benefitting from a reward program like cashback or frequent flyer miles.
- You need to send money in an emergency and don’t have another way of funding your transfer.
Drawbacks of using a credit card
The drawbacks of using a credit card to send money include:
- Not all providers will accept a credit card as payment to fund your exchange.
- The credit card company will often charge higher interest rates on cash advances from the day you send the money.
- You will often pay other fees and charges if you send money using a credit card.
Can you pay off a credit card with an international bank account?
As a general rule - no. It's particularly hard to do this if the credit card you have isn't from the same bank as your international bank account.
Some good options to consider in these situations are the Wise (formerly known as TransferWise) debit card and the Revolut card.
Emergency transfers – MoneyGram, Western Union and PayPal
PayPal, Western Union and MoneyGram are best used only in an emergency. The fees and possibility of a “double conversion” (if you fund in a currency other than Australian dollars) mean that you won’t get a competitive return on your transfer.
- MoneyGram accepts credit card or debit card payment online, and cash in person. A card issuer cash advance fee and associated interest charges may apply.
- Western Union does accept international payments online via debit or credit card, at no additional penalty. They accept Visa and MasterCard. The maximum daily amount for an online transfer is $5,000AUD.
- PayPal does let you fund an international transfer with a credit card, but you will pay for the privilege. They accept Visa, MasterCard and American Express, but charge a minimum of 3.9% of your transfer amount. Additionally, fees can be as high as 7.4% depending on the country you are sending to.
Standard transfers – your bank
As international payment providers, banks can be versatile but do have their weaknesses. They provide multiple ways to fund and send your payment, although you’ll pay for all of them no matter what method you choose. The fees are higher than alternative transfer providers and the rates are worse. As a result, the cost of this extra “convenience” doesn’t seem worth it.
You can use a credit card issued by your bank to make an online international money transfer, providing it is linked to your online banking. Banks also accept credit cards for payment through other forms of transfer including phone banking and in person at a branch.
Best value transfers – dedicated currency providers
You’ll get the best value on your exchange rates and the lowest fees by using a dedicated currency provider like OFX, Wise or Remitly. It is worth checking which company you use to make sure they accept credit card before you sign up.
Compare money transfer exchange rates and fees
From now on, in addition to receiving money, you can also transfer money to Visa և Mastercard cards of a number of countries*, as well as those, issued by VTB Bank (Armenia), which is not a member of the Armenian Card Processing Center, thanks to Visa Direct and Mastercard MoneySend services.
Transfers are made quite fast, in 24/7/365 mode. Transfers can be made both with a card number and with a phone number.
To make a transfer with a card number, you need to log in to ACBA Digital Internet Banking, select the "Transfer" section, then the "Card to Card Transfer" subsection, then "Visa Transfers" or "Mastercard MoneySend" and perform the following steps:
- Select "With a Card Number"
- Select the card for transfer,
- Fill in the card number, name and surname of the cardholder receiving the transfer;
- Fill in the amount,
- Click "Send".
Transfer service with a phone number
The transfer service with a phone number is automatically activated for all Visa and Mastercard payment system cards of the Bank. The activation of the service by the bank is carried out according to the following principle:
- At first, the cardholder’s card in AMD is selected; if a card in AMD is not available, the card in USD, and if that’s not available, the card in EUR is selected;
- In case of more than one cards in the same currency, the card with the lowest cash withdrawal interest rate is selected, and in case of more than one cards in the same currency with the same withdrawal interest rate, the card the longer validity period is selected;
- If the above criteria are met, the cards of Visa system, and then the cards of Mastercard system are selected.
The cardholders of Visa and Mastercard of the Bank have the opportunity to receive transfers via phone number, and the cardholders of Visa cards of the Bank have the opportunity to make transfers to Visa and Mastercard cardholders.
To make a transfer with a phone number, it is necessary to log in to ACBA Digital internet banking system, select the "Card to Card Transfer" section under the "Transfer" section, then "Visa Transfers", and follow the steps below:
- Select "With a phone number" and click "Search",
- Confirm the data of the found cardholder,
- Select the card for transfer,
- Fill in the amount,
- Click "Send".
Tariffs
Term | Visa Direct | Mastercard MoneySend |
Bank card transfer fee |
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Maximum limit for one transaction |
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Maximum number of transactions per customer per day for all products of the given payment system | 10 | 10 |
Maximum daily amount of transactions per customer for all products of the given payment system |
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*See the complete list of countries here.