Although paying a friend with a credit card may sound like a straightforward process, it’s not that simple. While many payment apps allow you to connect your debit card or bank account, only a handful allow you to use your credit card.
Venmo
With more than 90 million accounts, Venmo is often viewed as the most popular peer-to-peer payment platform. It’s no surprise because it only takes a few taps to send funds from your bank account to another Venmo user.
Venmo allows you to send money for free from your bank account, but if you use a credit card to fund your transfers, a 3% charge applies. For example, if you send $100 and pay with your credit card, a fee of $3 would apply.
Many credit card providers also consider Venmo transactions to be cash advances. That means you could pay significant interest charges in addition to the card fees.
It’s worth noting that eligible American Express cardholders can send fee-free Venmo credit card payments via the Amex App. To do this, link your Venmo account to your American Express account. You can then send or split bills by tapping the Send & Split option under the Payment section of your account. In lieu of earning rewards, standard credit card fees are waived.
PayPal
PayPal is another popular payment platform. While most people use PayPal for online purchases, you can also use the platform to send person-to-person money transfers to friends and family.
Once you’ve added a credit card to your PayPal account, you can use it to pay friends and family. This can be convenient for anyone who already has an account, but a fee of 2.90% plus 30 cents applies. Again, cash advance charges may apply depending on what company issued your credit card.
As with Venmo transactions, eligible American Express cardholders can avoid PayPal credit card transaction costs by using Amex Send & Split. You won’t earn rewards on these payments but won’t pay any fees either.
Cash App
Another peer-to-peer payment app that many people use is Cash App. After downloading the app and creating an account, you can send money instantly to other Cash App users.
Like Venmo and PayPal, you can use a credit card as your payment method. However, a 3% fee does apply and your credit card provider may code the transaction as a cash advance.
FAQs
Some peer-to-peer (P2P) apps, like Cash App, Venmo, and PayPal let you send money online with a credit card. You can also send money with credit cards through a cash advance or wire transfer. Sending money with a credit card incurs hefty fees, whether from your card issuer, P2P app or both.
How to pay a friend using a credit card? ›
Apps like Cash App, PayPal and Venmo allow you to send money through their platforms with a credit card, while Apple Cash, Google Pay and Zelle don't. Card issuers — such as Amex, Chase and Citi — support card loans that can be lower-cost alternatives for cardholders.
How do I pay someone with a credit card instantly? ›
Cash App. Another peer-to-peer payment app that many people use is Cash App. After downloading the app and creating an account, you can send money instantly to other Cash App users. Like Venmo and PayPal, you can use a credit card as your payment method.
How do I let customers pay with my credit card? ›
To accept credit card payments, your business needs a payment processor, POS hardware (if you're accepting in-person payments), online payment gateway (if you're accepting e-commerce payments) and a merchant account. Usually, you can get all of these components from the same provider.
Can you transfer money from a credit card to a personal account? ›
If you do need to transfer funds into your bank account, one option is to use a credit card with a money transfer facility. This can be useful for paying off short-term debt, such as a small overdraft or if you need a little extra cash in your account to pay unplanned expenses.
How can I make a payment through a credit card? ›
To pay for your purchases at a retail outlet, be it a restaurant, a supermarket or a shopping mall, just present your card at the billing counter. The person at the counter will swipe or insert your card into a machine and ask you to enter your PIN (a secret code that only you know).
Can I make a payment to my friends credit card? ›
Set up the credit card company as a payee with your bank.
If you use online banking to pay your bills, you can pay the credit card bill through your online account or mobile app. Simply add the name of the credit card company as a payee and include the account number of the person whose bill you want to pay.
How to transfer money from credit card to someone else account? ›
Step 1: Go to your bank's official website or open the mobile banking app. Step 2: Log into your bank account using your login details. Step 3: After logging in, go to the credit card section to access your credit card account details. Step 4: In the credit card section, select the 'Funds Transfer' option.
Can I transfer money using a credit card? ›
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.
How to pay someone using a credit card on Google pay? ›
Add a credit or debit card for payments
- On your mobile device, open the Google Pay app .
- Tap your Profile picture. Pay with credit or debit cards.
- Tap Add credit or debit cards.
- Tap Add Card.
- To add a card, you have 2 options: ...
- Tap More. ...
- Select how you'll verify your identity.
- Tap Continue.
Whether you want to accept credit cards or any other payment method online, the easiest solution is to use a payment service provider. Pay.com lets you easily receive payments from all the major credit cards, as well as debit cards, ACH transfers, digital wallets, and more.
How do I accept a credit card payment online? ›
Here are the steps you need to take for your business to start taking credit card payments:
- Decide which cards to accept - Mastercard, Visa, Apple Pay, Google Pay etc.
- Select a payment provider.
- Set up a merchant account.
- Choose a payment gateway.
- Install a card reader or terminal.
3 ways to pay a friend with a credit card
- Cash App. Cash App is free to download and accepts credit and debit cards. ...
- Venmo. Venmo requires you to sign up for an account through Facebook or your email. ...
- PayPal. ...
- Apple Pay. ...
- Google Pay. ...
- Zelle.
Transferring money from a credit card to a bank account is definitely possible, but there are always fees involved. Some third-party companies (e.g. PayPal and Venmo) let you transfer cash from a credit card to a bank account, but the upfront fees they charge make doing so a costly endeavor.
How to turn a credit card into cash? ›
How to use a credit card at an ATM to withdraw money
- Insert your credit card into an ATM.
- Enter your credit card PIN.
- Select the “cash withdrawal” or “cash advance” option.
- Select the “credit” option, if necessary (you may be asked to choose between checking, debit or credit)
- Enter the amount of cash you'd like to withdraw.
Step 1: Go to your bank's official website or open the mobile banking app. Step 2: Log into your bank account using your login details. Step 3: After logging in, go to the credit card section to access your credit card account details. Step 4: In the credit card section, select the 'Funds Transfer' option.
Can I Zelle from a credit card? ›
Zelle also doesn't allow for credit card payments. Venmo, Cash App and PayPal, on the other hand, let you link your credit card.
How to pay someone using a credit card on Google Pay? ›
Add a credit or debit card for payments
- On your mobile device, open the Google Pay app .
- Tap your Profile picture. Pay with credit or debit cards.
- Tap Add credit or debit cards.
- Tap Add Card.
- To add a card, you have 2 options: ...
- Tap More. ...
- Select how you'll verify your identity.
- Tap Continue.
