Can You Send Money With Your Credit Card?


Conventionally, credit cards were used to purchase items on credit. However, did you know you could use your credit card to send money to anyone? Credit cards can be used to send money. It’s as simple as using your card to purchase a money order.

Sending Money via Credit Cards

As experts at SoFi point out, “while it’s convenient to send money by credit card, it may be costly and it could impact your credit.” That’s why it is crucial to understand the process clearly.

When you send money to credit card, the transaction usually happens in two steps. First, you give the card company your PIN, and then your signature is captured on tape or electronically. The second step occurs when the credit card company sends part of the purchase amount to a bank account for the person or business that received the payment. After verifying that the funds are available, the bank sends a cashier’s check or other forms of immediate payment, which arrives in about one business day.

The transaction can be completed in just one step with a debit card if it is linked with your checking account. The transaction will deduct funds from your account each time it is used for purchases or ATM withdrawals at ATMs connected to Visa and MasterCard networks.

Other Payment Methods

Payment methods other than credit cards can be used to send money. Some of the most common are:

Bank Drafts

Bank Drafts (also called paper checks, bank checks, or certified checks) are pieces of paper that are paid by the bank for you and then deposited into your account. Your bank keeps a record of every check you’ve written and where it went, but there is no way to trace the person or business who received it.

The check can be made out to any person or business worldwide. However, banks usually require that you use your real name on a personal check so that they know who to give the funds to in case something goes wrong with payment and resolve any problem with your account.

Although people sometimes use large sums of money on bank drafts, they can be especially risky if used for large amounts of money like this because if it bounces, it will cost you more to get it back than what you sent and will also result in an overdraft fee from your bank.


If you use an ATM card instead of writing a check, then at no time do you need to hand over your PIN or sign anything at all. The only way anyone will know who is receiving the funds is by looking at your receipt, which shows the amount withdrawn from your account, when it was withdrawn, and how much was deducted from your account’s available balance each time.

Because ATM cards can be linked directly to checking accounts and debit cards, they are much safer for large amounts of money. With a debit card, a thief can steal the funds from your account without going through any checks or ATMs. Even with your bank’s help, there is still a chance that your account could be overdrawn or that your debit card can be used by someone else to make unauthorized withdrawals.

Share this article

Recent posts

Popular categories


Please enter your comment!
Please enter your name here

Recent comments