Everyone knows that you can pay for a retail transaction with your credit card. But did you know that it is possible to use your credit card to send money to anyone, including your friends?
Find out how it works, how long it takes, what it costs, and more in this guide.
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In this guide
Send money to someone’s bank account from your credit card
The process is relatively simple. Generally, this is how it works.
- Log in to your mobile or online banking.
- Find the page for bank transfers.
- Complete the transfer request form, specifying your credit card account as the source of the funds.
- Details you will need include your friend’s name; bank account number; and BSB.
Get these details ready so you don’t send money to the wrong account accidentally.
You can learn more about this here.
How long will it take for funds to arrive?
Funds sent from your credit card will typically clear into your friend’s bank account in two to three working days.
If your friend banks with the same bank as you, the funds will usually appear in their account later that same day.
It may take longer for funds to arrive if sent over a weekend or public holiday.
How much does it cost?
Sending money to a bank account from your credit card will typically be classified as a cash advance. This means that you will be charged the cash advance interest rate and a one-off cash advance fee. Interest accrues immediately on cash advances.
How much can you send?
The amount of money you can send depends on your credit card’s credit limit and the amount of credit that’s available.
Send money to someone via PayPal from your credit card
PayPal was designed to make sending money fast and secure.
It is popular because it is easier to remember your friend’s PayPal than their BSB and account number (which you won’t need for PayPal).
Your friend will need to register with PayPal before you can send money to them.
Assuming you have your own PayPal account:
- Get the PayPal address for whoever it is you are paying.
- Log in to your PayPal account.
- Click on “Send money” (their design changes regularly, but the link is usually at the top of the page).
- At this stage, you can choose whether you want to pay the PayPal fee or pass that on to the recipient.
- Complete the amount you want to send and currency.
- Choose the card with which to fund the payment.
- Click on “Send”.
Your friend can send you a link to pay via PayPal, which means you can pay them without having your own PayPal account.
How long will it take for funds to arrive?
The funds will arrive in your friend’s PayPal account instantly. They will then have to withdraw it to their bank account, if that’s what they want to do.
PayPal may hold a payment while they check for fraud. However, I’ve sent hundreds of payments via PayPal over the years and have only occasionally encountered problems such as this.
How much does it cost?
It depends on who you are sending to and the type of card you are using to fund the payment. As can be expected, funding a PayPal payment with an American Express is the most expensive option.
Another important factor in the cost is who pays for the fees.
How much can you send?
Since you are funding the payment with your credit card, the amount you can send will ultimately depend on your credit limit and the amount of credit you have available. For example, if you have a $2,000 credit limit but only $500 of available credit, you will be able to pay up to 500. Anything more will take you over your credit limit and may be declined by your bank.
Options to pay someone overseas
| Payment method | Credit cards accepted | Suitable for domestic payments? | Suitable for overseas payments? |
|---|---|---|---|
| PayPal | American Express, Diners Club, Mastercard, Visa | Yes | Yes |
| Wise | American Express, Diners Club, Mastercard, Visa | No | Yes |
FAQs
Can you send money to a friend with a credit card?
Yes. You can send money to someone by transferring funds from a credit card to their bank account. Alternatively, you can send money with PayPal and use your credit card as the source of funds. The mechanics vary depending on the method chosen.
Can you send money to a friend using PayID with a credit card?
No, it is not currently possible to send money to a bank account via PayID with a credit card as the source of funds.
