Can you send money with a credit card

Different ways to transfer money using a credit card

Although transferring money from a credit card is a simple process, there are multiple ways you can do so. Whether you want to send funds directly to a bank account or debit card, or use money transfer services, it’s all about finding the process that works best for you.

Transfer money from a credit card to a bank account

There are several ways in which you can transfer money from a credit card to a bank account. However, this depends on your bank or credit card issuer, so it’s best to research beforehand to gauge which options are available to you.

A popular method of transferring money from a card to an account is via a direct transfer. This can be completed in person, and online in some account cases, and is usually used if you or a loved one requires the money within a short amount of time.

Another way is to withdraw money from an ATM and simply deposit this into your bank account. However, this method isn’t best suited if you wish to send the money overseas or the person whose account you want to deposit into isn’t present with you. An easier way, in this instance, would be to send a check, which they could then deposit into their account themselves.

If you need to send money from a credit card to a bank account urgently, you can opt for a cash advance. More commonly used for financial emergencies, a cash advance acts as a loan taken out on a credit card, which can then be deposited into a bank account. This must then be paid back with interest – this starts accruing as soon as the money is taken from the card.

Use money transfer providers

Transferring money from a credit card to a bank account via a money transfer service is very straightforward. For example, with Western Union, you simply choose the country you wish to send money to, the amount, and provide the account details. Then, we do all the hard work.

The money transfer service will then contact the recipient’s bank with all the necessary information needed for them to receive the money. This is a quick and accessible way for you to send some money and support loved ones anywhere in the world.

Transfer money from a credit card to a debit card

You can transfer money from a credit card to a debit card quickly and easily. The quickest option is to make a simple bank transfer either online or in person at your local branch, as long as you have the details of both accounts in question.

Can you transfer money from a credit card to a bank account easily?

Sending money from a credit card direct to a bank account is one of the most popular ways of sending money, especially when wanting to support friends and family overseas. At Western Union, we make the process incredibly accessible and reliable, so you know your money will arrive in your loved ones’ bank accounts whenever they need it, wherever they are.

How can I send money from my credit card with Western Union?

With Western Union, you can transfer money using a credit card online, via our app, or at one of our handy local agent locations. All you need to do is have the information of both accounts involved in the transfer (sender and receiver), choose how much you want to send, and where you want to send it.

Sending money online or with our app is quick and easy and can be done in just a few clicks. If you want to send money in person, you need to find your local agent and bring the necessary account details, along with your card and proof of identity.

We make it easy to support friends and family, wherever in the world they may be. All you need to do is sign up for a Western Union account and you’ll be ready to make your first transfer.

Will sending money from a credit card affect your credit score?

When you transfer money using a credit card, it can negatively affect your credit score if you are using a balance transfer or cash advance that you fail to pay back on time. If you do pay the loan back in full, in the long-term, this can positively affect your credit score, as with any successful loan repayment.

However, it’s worth keeping in mind that any change in credit balance can affect your credit score, for example, if you go into your overdraft.

What are the advantages and disadvantages of transferring money from a credit card?

Although transferring money from a credit card to a bank account is convenient, there are pros and cons to the process that you will need to consider.

Advantages

• It is generally a quick and straight-forward process. • It can be done in a variety of ways, including online or in person, so is great in emergencies.

• It can positively affect your credit score if you pay a loan back on time.

Disadvantages

• It can negatively affect your credit score if it’s money you don’t have and you fail to pay the loan back. • If taking out a loan, you will immediately start accruing interest. • Balance transfers can incur extra fees.

• If you’re not careful, transferring money from a credit card can lead to further debt.

What else should you know about how to send money using a credit card?

Overall, the main consideration when you transfer money from a credit card to a bank account or loved one is the possible impact it can have on your credit score. You should also be aware of interest rates and debt implications.

If you can, it’s best to transfer money from debit card accounts to avoid the risk of going into your overdraft and accruing debt-related fees. If the money is for an emergency, it’s also a good idea to seek out financial advice from your bank or financial advisor.

Similar blogs

• What are remittances? • How long do wire transfers take? • How to send money to a bank account

• Can you buy a money order with a debit card?

You probably already know that it is possible to transfer the balance on an existing credit card to a new credit card and get a lower interest rate. But not so many people know that it is also possible to transfer from a credit card’s available credit to a bank account.

Interested to know how it works? Read on for more.

How does your credit card rate against what's available? Compare credit card offers.

The amount you can transfer depends on your available credit balance.

For example, if you have a $4,000 credit limit with $3,000 available credit, you could transfer $3,000 to a bank account. Although it is an expensive option, it does give you funds fast.

How long does it take?

It usually takes two to three business days before appearing as a credit in the bank account of a third party. Public holidays and weekend days add to the delay.

How much does it cost?

Transferring funds from a credit card to a bank account will be processed as a cash advance.

A one-off cash advance fee — typically a percentage of the transferred amount — will be applied immediately. The cash advance interest rate will also come into effect immediately.

For example, if you request a $3,000 transfer and the cash advance fee is 2.5%, the fee alone will come to $75.

The interest rate applied to cash advances on a credit card is currently around 20% p.a. That equates to 1.67% per month.

Additional fees may be applied for transfers to an overseas bank account.

The actual mechanics of requesting the transfer are easy.

  1. Log in in to your mobile or online banking for the credit card.
  2. Find the page for transfers.
  3. Complete the transfer request form, specifying your credit card account as the source of the funds.
  4. Details you will need include your friend’s name; bank account number; and BSB.

You can learn more about sending money to someone else in this Finty guide.

Alternative options

There are several alternative options that allow you to raise cash quickly (at a cost).

  • Withdraw cash from your credit card at an ATM and deposit it into a bank account. This will attract all the same fees, but may be faster.
  • Use a pay on demand service. Beforepay and MyPayNow give employees a way to receive their wages before their next scheduled payday. Employees effectively borrow a proportion of the money they have earned so far in the current pay period. How much you can borrow varies between services, ranging from 25 - 50%. Beforepay and MyPayNow both charge a one-off flat fee of 5%, but there is no interest.

FAQs

Yes. It is possible to transfer funds from your credit card to someone else's bank account.

You can't transfer funds from your credit card to your debit card. However, you can transfer funds to your bank account, which is linked to your debt card.

Yes. It is possible to transfer funds from your credit card to an overseas bank account. However, there may be an additional fee on top of the standard cash advance fee and interest.

  1. Access the service through Netbanking, mobile or ATM.
  2. Enter the recipient’s 16 digit Visa card number and the amount you want to send.
  3. The money will be received into the recipient Visa credit, debit or prepaid card.
  4. Recipient can use the received funds at any Visa merchant or ATM. When sent to a Visa credit card, the received amount is offset against the outstanding balance.