Credit Cards

How to Pay Someone with a Credit Card

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 5 minute read

How to Pay Someone with a Credit Card? Whether you were at a recent party or had to borrow money for an emergency, you’ve definitely had to repay your pals at some time. If you don’t have enough cash, don’t worry: you may pay a buddy using a credit card, albeit you may incur costs.

3 methods for paying a pal using a credit card

Look at your phone if you want to pay back friends or relatives without pulling out your wallet, going to an ATM, or paying cash advance costs.

Try out a few applications, and don’t be scared to use more than one. Various friends may use different applications, so if you want to make it easy for them, be flexible in how you transfer payments.

1. Cash App

The Cash App, previously known as Square Cash, is available for free download and takes credit and debit cards. With over 35 million downloads, it is the most popular money app in the App Store.

You can give or request money by using a $Cashtag, which is a one-of-a-kind identifier that allows you to make private and secure payments. You may transfer money with a credit card, but there is a 3% transaction charge. Otherwise, the program is free to use.

After installing the app and creating an account, input the amount you want to send and who you want it to go to. The person you’re transferring money to will also require the app, and you’ll need to input their phone number, email address, or $Cashtag to ensure your money reaches them. Try the Cash App right now – you’ll receive $5 for sending $5.

2. Venmo

Venmo asks you to create an account using Facebook or your email address. However, it is free to use, and there are no fees for sending money using a debit card. However, there is a 3% cost for using a credit card to send money to Venmo, so it’s a good idea to use one of the best credit cards for Venmo to help recuperate this price.

You and the person to whom you’re transferring money must both have the Venmo app installed in order for you to submit the payment.

Venmo’s news feed allows you to observe public transactions, which is a significant differential. You may see what your friends and relatives are paying for if they choose to do it public (there is a private option on the transaction if you prefer).

3. PayPal

PayPal is one of the first systems for transferring and receiving money online. To send money, you must first create a free account and attach a credit card. When you pay with a credit card, you’ll pay 2.9 percent plus 30 cents each transaction (or more if there’s a currency exchange).

The person to whom you are transferring money will also require a PayPal account. It’s a touch less user-friendly than your other alternatives, especially because PayPal allows you to do so much more than just transfer electronic money to pals. The majority of its offerings are aimed towards businesses.

3 Methods for paying someone using a debit card or bank account

While Cash App, Venmo, and PayPal all provide free debit card transactions, they are the only ones that accept credit card payments as well.

If you don’t have a credit card or wish to avoid transaction costs, you can transfer money to pals by adding a debit card or bank account.

1. Apple Pay

Apple halted person-to-person credit card payments earlier this year, but debit cards may still be used to send money to others.

If you have an iPhone, you can send money online very instantly. In Messages, touch the Apple Pay button while in a text chat with the buddy to whom you wish to transfer money. Enter the amount, then use Touch ID or Face ID to approve the transaction.

The payment is automatic as long as your buddy also has an appropriate Apple device and a connected debit card or Apple Cash. Your debit card gets connected to your Apple Wallet, allowing you to avoid manually inputting card information when sending a payment.

2. Google Pay

You may transfer money to anyone who has a phone number or an email address using the Google Pay app. Google Pay only allows you to send money to another person if you use a debit card or a bank account.

The buddy to whom you’re transferring money does not require the Google Pay app, but they will require a Google account. Once the money is received, your buddy will receive an email or text message and will need to use their Google account to check in and claim their cash.

3. Zelle

You may not even need the app to begin using Zelle. You may use your bank’s app to transmit money using Zelle if your bank or credit union permits it. If your financial institution does not support Zelle, you can send money by downloading the app. (Discover Zelle’s complete list of partners to see whether your bank is qualified.)

You do not have to be a client of the same bank as the person to whom you are transferring money in order to commence the payment. If your friend already has Zelle (or if their bank is a Zelle partner), they can get their money in minutes. If they don’t already have Zelle, they may download the app, sign up, and enter the banking information for the account to which they want the money transferred.

Can I send money with a credit card?

Yes. You may transfer money with a credit card using a variety of services, including PayPal and Venmo. These applications and services, however, demand a fee, which is often a percentage of the amount transacted. Venmo, for example, charges 3% when you use your credit card to send money to others. You’ll also need to ensure that you have adequate credit to transfer the money.

How can I send money instantly?

Many smartphone applications and services allow you to transmit money instantaneously, however most of them charge a fee for this service. Zelle, on the other hand, is not like that. In only minutes, you may use Zelle to send money straight from your bank account to any enrolled recipient.

You may perform a wire transfer if you want to go old school. While initiating a wire transfer is quick, it might take a few business days for the receiver to see the funds, especially with overseas payments. Of course, there are wire transfer costs connected with this payment option.

Bottom line

While using a credit card to pay friends may seem like a smart idea at first, the fees can quickly build up and put a strain on your own budget. Instead, offer to pay for outings with your credit card and request that your pals pay you back. Then you may earn credit card points on your entire group’s payment – plus you won’t have to pay expensive transaction fees.

If you find yourself owing friends rather than them owing you, consider utilizing debit cards rather than credit cards. That way, you won’t be charged exorbitant costs simply for using a credit card.

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