What apps can I use credit cards to send money?

Using Credit Cards for Money Transfers: Assessing Apps and Fees

In the digital age, the convenience of transferring money via apps has become ubiquitous. However, when considering using credit cards for these transactions, it’s essential to be aware of the potential pitfalls and costs involved.

Apps that Support Credit Card Money Transfers

Among the popular money transfer apps, Cash App and PayPal allow users to send money using credit cards. However, it’s crucial to note that these transactions are often subject to hefty fees.

• Cash App: Charges a 3% fee for credit card transactions.
• PayPal: Charges a 2.9% fee, plus a fixed fee of $0.30 per transaction, for credit card transfers.

Apps that Do Not Support Credit Card Money Transfers

Apps such as Apple Cash and Google Pay do not currently offer the ability to send money using credit cards. This is primarily due to the high cost associated with processing credit card transactions, which would make the service financially unfeasible for the app providers.

Financial Implications

While credit card money transfers may seem convenient, it’s important to consider the financial implications:

• Fees: As mentioned above, both Cash App and PayPal charge substantial fees for credit card transactions. These fees can quickly add up, especially for larger amounts.
• Interest Charges: If you do not pay off your credit card balance in full by the due date, you will be charged interest on the outstanding amount. This can significantly increase the cost of the transaction.
• Credit Score Impact: Using credit cards for non-purchase transactions, such as money transfers, can negatively impact your credit score if you carry a high balance or make late payments.

Conclusion

While apps like Cash App and PayPal can facilitate credit card money transfers, it’s crucial to be mindful of the associated fees and potential financial repercussions. For more cost-effective and convenient money transfer options, consider using debit cards or bank transfers, which typically do not incur additional charges.