Online money transfers using a credit card: Sending money online with a credit card is much easier in the digital age. Thanks to companies like Paypal , Amazon and Square that offer financial solutions that anyone can access from their computer, tablet or mobile phone.
You can use these three services to make a payment or send money to someone using your credit card. In many cases, both the sender and recipient must have accounts with the company in order to complete the transaction.
Sending money online is a great way to send funds to friends and family, or even pay for goods and services. Here’s how to find the right platform for you.
Take a look: The best platforms to send money online
|PayPal||The most used|
|Google Wallet||Fast withdrawals|
|We sell||The best mobile experience|
|OFX||Economic international transfers|
|Western Union||Wide international reach|
Choosing the right platform to transfer money depends on your needs
There is a wide variety of options for transferring money within the country or internationally. Most banks and financial institutions offer transfer services, but they tend to be very expensive. Additionally, you may have to provide plenty of information about yourself and the person you’re sending money to.
Matt Oppenheimer, CEO and co-founder of digital remittance service Remitly, says that when comparing platforms to send money online, you should consider where and to whom you want to transfer money.
Additionally, he insists that customer service and costs are of utmost importance when sending money.
He says that the lower the costs, the more money your beneficiary will receive. Your advice from him? “Make sure the transfer and exchange costs are fair.”
Despite the fact that some money transfer companies do not have the best customer service, it may be necessary to mention it.
The company should be open and transparent and tell you exactly when your funds will reach your beneficiary, recommends Oppenheimer. You should find a service that gives you updates while the money is on the way, and offers ways of contacting the staff 24/7 if you need assistance. With that in mind, we’ve compiled a list of the top five platforms for transferring money online. Find the one that’s right for you!
Can I cancel an online money transfer?
It all depends on the platform you use to transfer money. Before sending a money transfer, be sure to read the cancellation and refund policies.
The most used: PayPal
Almost all of your friends and family likely have a PayPal account, so you can send them money via PayPal. PayPal is the most popular mobile app for sending money, according to Pew Charitable Trusts.
It’s probably because it’s so easy to use. After verifying your account, you can send up to $10,000 in a single transaction. Once the beneficiary has received the money, it usually takes one business day for the money to be transferred to their bank account.
You can also use your PayPal balance or bank account to transfer money within the US using PayPal. Transferring money with a debit or credit card will cost you 2.9 percent plus 30 cents.
Over 100 foreign currencies are also available for sending money abroad. The total cost of international transfers is determined by the currency selected. Using PayPal, the recipient does not see any of your financial information, including your credit card or bank account number. With PayPal, you are automatically protected against fraud when purchasing goods or services.
Fast withdrawals: Google Wallet
No matter how you transfer money, Google Wallet is free. In addition to its speed, this product stands out from the competition.
For transferring money to someone who has your debit card as the default payment method in Google Wallet, Google Wallet is the best option. In just a few minutes, your debit card payment will appear in the linked debit card’s bank account. Transfers involving bank accounts can, however, take up to four days to complete (in some rare cases).
A single transaction can transfer up to $9,999, or up to $50,000 in five days (Florida residents can send up to $3,000 every 24 hours). You cannot send money abroad using Google Wallet.
As Google Wallet is mostly used for peer-to-peer money transfers, it doesn’t provide much in the way of purchase protection. If unauthorized verified transactions are generated, you will not be liable.
The best mobile experience: Venmo
Venmo, which belongs to PayPal, is a social network for sending money. On your phone, tablet, or computer, you can add friends and see the transactions they generate (but not the amounts) from your account.
With Venmo, you can send money using your Venmo balance, a bank account, a debit card, or a prepaid card. If you use a credit card, you will have to pay 3% of the amount sent. A bank transfer normally takes one business day.
You can send up to $2,999.99 per week through Venmo after you verify your identity. In addition to this, payments to authorized sellers are limited to $2,000 per transaction and the aggregate weekly limit is $4,999.99. Venmo does not offer any protection to buyers or sellers, so you should only use this platform with people you know and trust.
Cheap international transfers: OFX
OFX is an inexpensive way to send money overseas. There are no fees for transfers, and it does not limit the amount of money you can send in most major foreign currencies. It does, however, require a minimum transfer of $150.
OFX lets you transfer money to 190 countries in 55 foreign currencies. Transfer times vary depending on the country where you send money, but in most cases one to two business days are required.
When you send money through OFX, you will receive an email notification so you can track your transfer. OFX uses fraud prevention technology to detect suspicious activity and protect you from criminals.
Broad international reach: Western Union
Due to its extensive global network, Western Union may be the best option for you if you need to transfer money internationally. Transacting in more than 200 countries and territories in more than 130 foreign currencies, OFX offers a much broader reach.
Your account allows you to request to increase the transfer limit if it is initially limited to $10,000.
Western Union’s main disadvantage is the cost of its standard deliveries, which start at $5 to certain countries and certain currencies. Delivery takes three to five days for this method. Bank drafts, which typically take one or two business days to reach you, cost $22. It is important to know that Western Union may charge the beneficiary’s bank additional fees, so be sure to ask about all fees before sending money.
You can send a bank check at no cost if you’re not in a rush and the beneficiary lives in an eligible country. It can take between 10 to 15 business days for this method to be completed, and the beneficiary is responsible for cashing the check at their bank.
Western Union does not specify which fraud protection measures it offers, but it recommends that its consumers follow good practices when transferring funds. Avoid sending money to strangers and falling for scams that seem too good to be true. Reporting fraudulent activity to Western Union is possible, but there is no guarantee that your money will be returned.
Can a credit card be used to send money offline?
There are two possible answers: yes and no. You will already know that if you have time with your credit card, there are several options that will allow you to obtain physical money and use it however you wish. If you want to make an electronic transfer, you could use a smart ATM or withdraw the amount you need at an ATM and deposit it at the box office, or perhaps use Zelle.
How does it work? Most of these types of transactions have a different APR than purchases. This would make implementation costly. See our guide ” How to transfer money from a credit card to a debit card ” to learn more about this method of money transfer.
As a second option, you could use the credit card balance transfer tool to request an instant loan.
Tip: We recommend choosing a credit card with a 0% APR if you want to use it to send money online or off. There is no interest associated with it, so you will be only required to pay commissions and fees associated with each service.
Paying with a credit card online: PayPal, Square, and Amazon Payments
One of the most interesting parts of this article is how to send money online with a credit card. You can access these options via mobile, tablet, or laptop; you will not have to leave home, and the associated rates seem quite low, at least by comparison with others in the market.
We have researched three full proof ways to send cash using plastic :
We shouldn’t need to introduce this company. PayPal is a major player in money transfers and online payments. In fact, it is one of the first to implement it.
PayPal accounts are required by both parties in order to use this service.
The recipient’s email address must be provided at the time of the transaction, and any errors should be corrected. Select “Send money” from the PayPal menu after logging in with your email address and password.
Next, PayPal will ask you whether you want to send money to friends and family or pay for goods and services. Select the best option and enter the recipient’s email address and the amount you would like to send in the corresponding box.
Please check your payment method by clicking “Change payment method”. Before completing the transaction, add any credit cards you intend to use.
With PayPal, the recipient will receive the funds instantly and automatically. No worries! PayPal allows you to change currency without departing the platform if you normally use another currency, such as euros.
It is a good idea to select the option “send money to friends and family” when the recipient is a trusted person. But why? PayPal will in this case waive the commissions and fees associated with the service.
What are PayPal’s fees?
Payments to providers are subject to a 2.9% fee on the amount of the transfer, plus a 0.30 fee per transaction. In other words, PayPal charges $ 29.30 on a payment of $ 1,000. There are two options here: either you pay the commission out of pocket or the recipient does. When you do the latter, they will receive the amount you sent less the costs associated with the operation.
REMEMBER : Despite the convenience of sending money to friends and family, only use this option if you are in fact transferring funds to a trusted individual. Although transactions for friends and family do not have a surcharge, there are no guarantees, which means you cannot ask for a refund.
Amazon Payments is a similar program to PayPal. If you have a bank account or if you want to use a credit or debit card, you can link your Amazon Payments account to it. As with all online cash payment systems, you must confirm the account when registering by clicking on the link in the automatic email that is sent to you.
Note: Be sure that you enter the recipient’s “registered name” on Amazon correctly.
Make sure you send the money to the correct recipient before sending the money. Even if you are doing a cash transfer, choose “goods and services” instead of “cash advance.” If you choose the latter, your credit card company will charge you a fee, just like if you request a cash advance at the ATM.
What is the Amazon fee?
Amazon provides free payments up to $ 1,000 per month, which is not too bad compared to PayPal. In other words, you can send a payment of $ 1,000 – or four payments of $ 250 – without paying a penny in commission. However, if this amount is exceeded, PayPal will charge the same 2.9% fee plus $ 0.30.
Since Square began as an online commerce platform, it has transformed into a service that enables consumers to transfer money online directly with their credit cards. The application is accessible via mobile phones running iOS and Android operating systems.
Your credit card must be linked to the app account after downloading the app. By tapping the “pay” button, you can make a payment by using the recipient’s phone number. When paying with a credit card, Square Cash charges a 3% fee. Enter an amount greater than $ 1 and click “submit.”
Note: If you are interested in knowing more about Square, see our guide: “How does the Square Cash App make money? “
How to transfer money from your credit card. Alternative methods
We’ve examined the top three most popular methods of sending money online for Americans so far. However, they are not the only ones. We will explore a couple more options so you can choose from several options:
It was launched in 2009. In order to divide dinner payments between friends, send rent payments to a roommate, or share an Uber ride without complications, this app was born. If you choose to pay by credit card, you will have to pay 3% even though the transaction is free when you use your Venmo balance or debit card.
Apple Pay Cash
Apple users can use it. The maximum transfer amount is $3,000 using Apple Pay. How much does it cost? It costs 3% of the total amount transferred. Credit cards can be used with Apple Pay Cash, so you can use yours without any issues.
Credit cards are now accepted by Google Pay, as opposed to before. You can now use any card you want, however you will be charged 2.9% of the transaction amount.
Although it’s not common, Facebook has a feature similar to Venmo: while you’re chatting with your friends, you can send money to them. The platform is user-friendly and intuitive, and it allows for debit and credit card payments.
Western Union has transformed itself in a remarkable way. With its mobile application or official website, you can use your credit card to send money anywhere in the world. Are there any cons? It is typically the most expensive service on the market.
In addition, if you decide to use the balance in your bank account instead of your credit card, you can also send money instantly. Here’s how. Using Zelle or Chase Quick Pay.
Beware of high fees and exchange rates.
There are some companies that allow you to send money both domestically and internationally, but they may charge you high transfer fees and exchange rates for international transactions. If you pay with a debit or credit card, the same applies. It pays to read the fine print.
Payments can be made both domestically and internationally with PayPal, for example. Their transfer fees and exchange rates can, however, add up and make them more expensive. Make sure you understand the total cost of the app or website before submitting.
Also, if you use a credit card to send funds abroad, you may have to pay a fee for the money advance from your credit card issuer, over which PayPal has no control. Rates may be better with services that specialize in international transfers. The best option for sending money abroad is usually to use a money transfer service that specializes in international transfers since these additional fees can quickly add up.
Because these services specialize in global money transfers, they tend to offer better exchange rates and lower transfer fees than banks. If you use a credit card account to fund the transfer, the credit card company may charge you fees.
Additionally, money transfer apps are fast and secure. Many of them allow you to track the status of your transfer for additional peace of mind. This holds true whether you’re sending funds to a bank account, a cash pickup location, or a mobile wallet.
When it comes to sending money, using your debit card or bank account is often the most affordable option, whether you are sending internationally or domestically. With this method, you can avoid the high fees that credit cards charge for cash advances.
Although, it is still possible to send money using a credit card when you don’t have access to cash.
Be sure to shop around for the lowest fees before making these transfers to people abroad. International shipping services may be your best option.
“You have more options to send money to your loved ones online-safe, fast, and affordable-than at brick-and-mortar stores,” says Oppenheimer.
Compare features and costs of various online platforms before choosing one. A suitable platform will be one that suits your needs the most.
Oppenheimer recommends comparing exchange rates when sending money abroad. Although rates may vary with market fluctuations, a company may not always offer the best deals.
Last but not least, if you choose a platform and don’t like it, don’t be afraid to change platforms. After all, it’s your money, so you should send it in the best possible way.
Hope you got enough information regarding how to send money online with a credit card and the best platforms to send money online.
Feel free to comment if you have any doubts!!