Can i use my credit card to transfer money to someone

Q: How do you send money to someone with a credit card?

Heres a quick breakdown of how to send money after you download a payments app:.

money at your fingertips, all the time

credit cards act as a lifeguard when you need money in a pinch. but sometimes credit cards cannot be used for certain transactions. payment for mortgages, stocks, money orders are all such examples that do not accept a credit card payment. in such a scenario, you can always transfer money from your credit card to your bank account. here's all that you need to know about such a transaction.
when it comes to transferring money from a credit card to a bank account, there are 2 situations you might encounter.

Table of Contents Show

money at your fingertips, all the time
Using a credit card to send money overseas
What we will cover
So, when should you use a credit card to transfer money overseas?
Can you pay off a credit card with an international bank account?
Emergency transfers – MoneyGram, Western Union and PayPal
Standard transfers – your bank
Best value transfers – dedicated currency providers
Compare money transfer exchange rates and fees
How do you send money to someone with a credit card?
Can you send money from credit card to bank account?

when banks allow you to make a credit card to bank account transfer
you can do a direct transfer with the bank through net banking, money transfer credit card or phone call or indirectly using an e-wallet that is linked to your bank account.

when banks restrict you to make a credit card to bank account transfer
you can transfer money using cheques or ATM cash advances.

direct transfer to bank account
you can transfer funds from your credit card to your bank account directly using the net banking app or even over the phone. since the daily and monthly transfer limit varies from bank-to-bank, you would need to check that with your bank to get the updated information. if you are transferring funds to an account with the same bank as that of the credit card, the transfer is almost instant. however, if the transfer is to an account with another bank, then it should take two to three business days.

net banking
money can be transferred by directly accessing your credit card’s online banking account. the charges for making a transfer from a credit card to a bank account varies from bank to bank. follow the procedure provided below:

step 1: open your bank’s website
step 2: log in to your credit card account
step 3: select the transfer option
step 4: enter the amount you want to transfer
step 5: enter the required details mentioned in the form
step 6: follow the prompts to complete transactions

phone call
if you need the cash immediately, and do not have access to the internet, the transfer is always a phone call away. the charges for making a transfer from a credit card to a bank account through a phone call will be the same as the amount charged via net banking. follow the steps provided below:

step 1: call your credit card company
step 2: request for a fund transfer
step 3: confirm the amount you want to transfer to the bank account
step 4: provide the bank account number and other details required
step 5: follow the prompts to complete the transaction

indirect transfer to bank account
e-wallets like Paytm and Payzapp are digital wallets that allow you to make transactions quickly and securely. these are linked to your bank account and require a KYC to be completed.

what are the other transfer options do i have?
if your bank does not allow you to make a transfer from your credit card to the bank account, don’t sweat, there are some accepted hacks around this. here are a couple of options you can consider:

cheques: there is a facility known as ‘cheque to self’ where you can write a cheque to yourself. the money is taken from your credit card and is transferred to your bank account.

what is the procedure?

step 1: include the name of the payee as ‘self’
step 2: include other necessary information as you normally would while writing a cheque
step 3: deposit the cheque at your bank branch

what are the charges?

the applicable fees and charges will depend on the cheque collection and deposit charges levied by your bank.

ATM cash advance: ATM cash advance is a facility that allows you to withdraw cash from an ATM using your credit card and deposit that amount to your bank account.

what is the procedure?

step 1: withdraw cash using your credit card at an ATM
step 2: deposit the cash at your bank’s branch

what are the charges?

the fees and charges for withdrawing cash using a credit card are generally high and are called cash advance fees. for example, HDFC Bank charges 2.5% cash advance fees on the total amount withdrawn. the cash advance charges vary from bank to bank.

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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.

Using a credit card to send money overseas

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:

You will probably pay a higher interest rate as a “cash advance” from the day you make the transfer.
You will pay more in fees.
You probably won’t get a competitive exchange rate.

What we will cover

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:

When should you use a credit card to transfer money overseas?
Emergency transfers – MoneyGram, Western Union and PayPal
Standard transfers – your bank
Best value transfers – dedicated currency providers
Understanding the fine print
The Currency Shop reviews different currency providers

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

How do you send money to someone with a credit card?

Here's a quick breakdown of how to send money after you download a payments app:.

Add your credit card as a payment method..

Choose the option to send money..

Look up the recipient through their name, phone number, or email address..

Pick an amount to send and confirm the transaction..

Can you send money from credit card to bank account?

It is possible to use a credit card to transfer money into a bank account by using a cash advance or balance transfer check, but we can't recommend it. Cash advances are risky because of the high interest rates and costly one-time fees. Balance transfers can lead to more debt if they're not handled correctly.