In this article, we’ll explain how to transfer money from a credit card to banks, debit cards, and third parties. This will apply to credit cards issued by domestic banks and those cards issued by foreign institutions as well.
This article is part of our free series on opening an offshore bank account with a credit card, which you can access for free by clicking the link above.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Transfer Money From a Credit Card
- Sending a Money Transfer From a Credit Card to Bank Account
- Frequently Asked Questions
- Ready to Explore Your Options?
Transfer Money From a Credit Card
Transfer money from a credit card using one of the following methods: money orders (e.g. Western Union), money service businesses (e.g. PayPal), or cash advances (e.g. withdrawals from cards). There are other options available as well. However, these three methods are the most commonly used.
While possible, it’s important to note that transferring funds from a credit card can be very costly. In most cases, this option for accessing funds should only be used in emergency situations. The reason for this is that sending funds from a credit card effectively acts as a cash advance, resulting in additional fees, higher interest, or a combination of the two being applied.
Additionally, many credit card issuers have minimum charges for cash advances. In one case, a UK credit card issuer will charge a minimum of 250 GBP anytime a cardholder requests a cash advance. This applies to cash advances of any value, even if the value is less than 250 GBP.
In the following section of the article, we’ll take a closer look at these three methods and how you can use them to transfer money from a credit card.
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Sending a Money Transfer From a Credit Card
In this section, we’re going to discuss how to send a money transfer from a credit card.
Can I Send a Money Transfer Online From My Credit Card?
Yes, you can send funds from a credit card online. Two of the most popular ways to do this include money orders (e.g. Western Union) and money service businesses (e.g. PayPal).
That said, it’s important to note that not all money order providers or money service businesses offer this option. In fact, in many cases, businesses in these two areas do not send funds from credit cards. Instead, they typically require cash, a bank account, or a debit card to process a transfer.
Additionally, many credit card issuers view a money order as a cash advance and charge high interest rates on the balance of the transfer immediately.
Can You Send a Money Transfer From a Credit Card to a Bank Account?
If you choose to use one of these options, the fastest way to send a transfer from a credit card is to log onto the online banking platform and follow the steps to send a transfer to the intended recipient. You can then insert your credit card details as the payment method, and the transfer can be sent.
What Are the Charges for Sending a Money Transfer From a Credit Card to a Bank Account?
The charges for sending a money transfer from a credit card vary between card issuers. However, in most cases, there is a fee based on the total amount transferred. This fee typically ranges from 1% to 6%. And, in many cases, there is a minimum charge that will apply to a transfer. Similar to the fees, the minimum charge for each transfer will also vary between card issuers.
Frequently Asked Questions
Below are three of the most common questions that we receive from people in the UK on this topic. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Can I Transfer Money Out of a Credit Card?
You can transfer money out of a credit card by using a money order, money service business, or a cash advance. The option you choose will depend on the amount you are transferring, how soon you can repay the transfer on the credit card, and the fees that you are willing to pay for this service. Importantly, each option applies different fees, though all three can be very costly.
Can I Send Money From a Credit Card to Pay Someone Else?
Yes, you can send money from a credit card to pay someone else. However, the options available to you will depend on the jurisdiction you live and where the credit card is from. For example, if you are in the UK, you may choose to use a money transfer card to fund your bank account and then funds directly. Alternatively, if you are in the US, you may choose to use Venmo to send a transfer to someone via your credit card. Or, in both instances, you may choose to send a money order via certain money order companies.
Can I Transfer Money From a Credit Card to a Debit Card?
Yes, you can transfer money from a credit card to a debit card in certain instances. For example, if you have a money transfer credit card, then you can simply send funds to the account that your debit card is linked to. This approach provides direct access to the funds in the account, via the respective debit card.
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