These days, we’re lucky enough to be blessed with multiple ways of sending money online. There is a whole host of money transfer services that you can register with to send your money all over the world. A big part of using these services is deciding what payment method you wish to use. Some people will add their bank details in, while others decide to use their credit card.
It’s this second option that we’ll focus on in today’s article. Sending money online is relatively simple, but throwing a credit card into the equation complicates things slightly. A credit card isn’t linked to your bank account and the money on it doesn’t come from you, it comes from the card issuer. There are benefits to sending money online with a credit card, and there are drawbacks. Both things will be covered as we attempt to explain everything there is to know about this topic.
Why Send Money Online With A Credit Card?
The most obvious question is; why use your credit card to send money online? Mainly, it’s very helpful in situations where you need to send more money than you currently have. For example, you could have someone asking you for a lot of money, and you need to send it right away. Unfortunately, you don’t get paid for a week, but they can’t wait that long. With a credit card, you can still send the money – provided you have a big enough balance – without taking any cash from your bank account. Then, the money transfer will be added to your monthly credit card bill, which you can pay once you get paid.
In essence, sending money using your credit card can help you out of tight situations where the money just isn’t in your account right at that moment.
What Are The Drawbacks Of Sending Money Online With A Credit Card?
There is one main drawback to sending money using your credit card, and it revolves around fees. Normally, if the money you send is funded by your bank account, it will be free. Of course, there might be some services that charge you, but all the good ones offer this without any fees at all.
However, funding your money with a credit card will result in additional fees, even when you’re sending money to someone in the same country as you. The fee you pay will vary depending on what service you’re using. Different companies offer different rates, but it usually comes in the form of a percentage. So, it’s taken from the amount of money you’re sending. In this regard, if you only send a double-figure amount, you’ll pay a much smaller fee than someone sending triple or quadruple figures.
Essentially, sending money with a credit card is a toss up between paying a small fee and not using money from your bank balance. Some people much prefer to use their credit card as they might use it for everything and don’t like touching the money in their bank balance other than to pay their bills. Other people think that if there are free methods out there, why bother paying a fee?
How Do You Send Money Using A Credit Card?
Sending money online using a credit card is exactly the same as sending it using any other payment method. Find the service you wish to use, create your account, add your credit card, and start sending money. The difference is that certain popular services – like Google Wallet – don’t let you fund money transfers using a credit card.
As such, you have to look for places that do accept credit cards as a funding option. Below, you will find a list of some of the most popular services that you can use to send money online using a credit card:
- PayPal – Offers a specific low fee for all transfers made using a credit card, money is transferred and delivered instantly.
- Neteller – Includes various different fees depending on your credit card issuer. Can also send money to people without a Neteller account.
- MoneyGram – Excellent way of sending a lot of money to someone in a different country with your credit card.
- Western Union – Along with MoneyGram, one of the best ways to securely send money across the world using your credit card. Specializes in large money transfers.
- Payza – offers both personal and business accounts with different fees for each.
As you can see, there are many ways you can send money online using a credit card. Our advice is to figure out who offers the lowest rate at the time of sending. Hopefully, this has taught you everything about sending money with a credit card, you’ve seen the pros and cons, as well as how to do it.