Credit cards let you pay for goods and services, but most don’t allow you to make transfers of money. In other words, you usually can’t log into your credit card account and move money around.
There are plenty of exceptions to this rule, including appropriately named money transfer credit cards. These cards do let you login and initiate a transfer to another account, potentially in another country. But when you do this you may be charged a money transfer fee (typically around 3% of the amount) and you may be charged a currency conversion fee (again typically around 3%).
The alternative is to use your credit card to pay for a transfer through an international money transfer specialist. These popular services offer better rates than most banks, and most of them will accept payment by credit card.
When a money transfer service takes a payment from your credit card, it also passes your bank its “Merchant Category Code” (MCC). Banks use these to classify different types of transactions. Unfortunately, credit card payments to companies which banks identify through the MCC as being money transfer services, may attract “cash advance” fees. A cash advance fee is usually around 3%. More commonly cash advance fees are incurred if you use a credit card to withdraw cash at a cash machine or get cashback at the till.
The short answer is yes, you can send money online using a credit or debit card. There are multiple ways you can do this, but you’ll need to keep an eye on the fees. It’s likely to work out cheaper with a debit card. You may be able to send money directly from your credit card account, or alternatively pay by credit card for a transfer through a money transfer platform like Wise. And picking the right company to send money through using your credit card can make a big difference in fees.
These apply specifically to using a credit card to pay for a transfer using an international money transfer specialist.
Specialist transfer companies like XE, Western Union, WorldRemit and more allow you to pay for online transfers using your credit card. They can provide credit-card-to-debit-card transfers (transfers to your recipients’s account) or even cash pick-up transfers, where your recipient can pick up the transfer as cash from a local branch.
Alternatively you can link your credit card to your PayPal account to make an overseas transfer. You’ll then be charged PayPal’s fees and potentially also fees from your credit card issuer.
If you don’t have a credit card, don’t panic – a debit card is actually a better bet.
Here are a few options for international transfers using your debit card:
But the cheapest way to pay for a transfer through an international money transfer specialist is – you guessed it – by bank transfer. In other words, you transfer GBP to them for free, and then they transfer a different currency to your nominated recipient (charging you a fee or a margin along the way for the privilege).
If you don’t have a credit card, bank account or debit card, consider picking up a prepaid debit card. You can purchase one at a local store — such as a supermarket — and use it to fund your transfer.
In theory, if you have a rewards credit card, you could earn air miles, reward points or cashback after you fund your transfer. However, cash advances (that’s withdrawing cash at an atm, buying foreign currency, spending money at a casino, getting cashback at the till, or other “cash-like” transactions including paying for a money transfer) are often exempt from rewards. And if you end up paying interest on the outstanding balance, that will quickly outweigh the value of any rewards you might have earned.
Put simply, it’s not ideal due to the fees involved. If you pay for your international transfer with a global transfers specialist by debit card or a bank transfer, that will almost certainly work out cheaper.
But if you’re aware of the fees and go into the transaction with your eyes open, endeavoring to clear the credit card balance as soon as possible, then it is at least a viable method.
If you’re set on using a credit card, compare multiple transfer providers before parting with your money so that you can find the cheapest option.
That depends on your chosen provider — some services do offer international debit cards that allow you to transfer prepaid amounts abroad.
Yes, however, this can be a pricey transfer. PayPal allows you to make credit card payments at a cost ranging from 3.9% – 7.4% of your total transaction value.
Western Union does accept credit card payments through providers like Visa and Mastercard.
WorldRemit accepts debit and credit cards issued by Visa and Mastercard. However, you may be subject to additional fees from your credit card issuer since the transaction counts as a cash transfer.
Typically, no. Few international bank accounts come with a corresponding credit card. It’s even more difficult to use your international bank account to pay off a credit card from a different provider. If you’re interested in using a card alongside an international bank account, consider multicurrency debit cards like the one offered by Wise.
Learn about how Small World alternatives can help you send more money for less.
Revolut has made a name for itself as a favourite for frequent travellers by offering great currency services. Stick within the “fair usage” limit for your plan and the pricing can be hard to beat.
Halifax offers different ways to send money overseas to friends and family. Check the exchange rates, fees and features in our review, and compare your options.
Learn about taxes on large-money transfers to the UK from abroad, including penalties and exceptions.
Xe is a leading company of currency solutions that offers competitive exchange rates, no fees and fast money transfers.
Lloyds Bank provides a range of options for sending money overseas to friends and family. See exchange rates, fees and services here and compare your options.
Check out our review of TorFX’s fee-free money transfers.
Read our Wise review to see the exchange rates, fees and what to expect when you send a transfer.
If you’re thinking of sending a money transfer with Western Union, read our review of its transfer speed, exchange rates and fees first.
Send an international money transfer to someone without a bank account. Get it there instantly and they can pick it up in person, in cash. Get quotes now.