Alternatives to Sending Money with a Credit Card

Sending funds across borders or to friends and family can be fraught with high costs, slow delivery, and hidden charges when relying on credit cards. Interest rates on cash advances often exceed 25 percent APR, cash advance fees range between 2 percent and 5 percent of the withdrawal amount, and currency conversion fees can add another 1 percent to 3 percent on top of that. When you wonder how to remit money using credit card, these expenses quickly outweigh the convenience. If you’re seeking cheap credit card money transfers or fast credit card remittance options without the steep interest and fees, exploring other channels makes sense.

Below, we examine a range of alternatives—bank transfers, fintech platforms, peer-to-peer apps, cryptocurrency, prepaid instruments, and more—each with its own cost profile, speed, and ease of use. By comparing fees, exchange rates, delivery times, and user experiences, you can select the method that best suits your needs while learning strategies to avoid fees on credit card transfers altogether.

Why Credit Cards Can Be Costly for Money Transfers

Credit cards offer convenience and protection for purchases, but as a remittance tool they present several drawbacks:

• Cash advance fees. Most issuers treat international transfers as cash advances, charging 2 percent–5 percent of the amount up front.

• High interest rates. APRs on cash advances typically start at 20 percent and can exceed 30 percent, with no grace period.

• Currency conversion fees. Cards often add 1 percent–3 percent on top of the wholesale rate.

• Cash advance ATM fees. If you withdraw at an ATM abroad, additional ATM operator fees apply, sometimes as much as $5–$10 per withdrawal.

These costs compound quickly. For a $500 transfer, you might pay $10 (2 percent) in advance fees, 2 percent in currency fees ($10), plus interest that starts accruing immediately. That can translate to more than $50 in fees within weeks. If you’ve searched for how to remit money using credit card, you’ve likely discovered that total costs frequently exceed 10 percent of the transfer amount—far higher than most alternative methods.

Bank-to-Bank Transfers

Traditional bank transfers remain a staple for domestic and international payments. Options include ACH (domestic), SEPA (Eurozone), and SWIFT (global).

Domestic ACH and Faster Payments

• ACH (US). Automated Clearing House transfers cost as little as $0–$3 when initiated online, though same-day ACH may carry a $1–$5 premium.

• Faster Payments (UK). Near-instant transfers between UK banks are typically free for retail customers.

• Interac e-Transfer (Canada). Costs range from free to CA$1.50 per transaction, depending on the bank and plan.

These services are ideal for domestic remittances—low to no fees, high security, and delivery in one business day or faster.

SEPA (Single Euro Payments Area)

For euro-to-euro transactions across 36 European countries, SEPA transfers settle in one business day and usually cost €0–€5 per transaction. Many banks include SEPA payments free for personal accounts.

SWIFT Transfers

• Cost. Bank fees vary widely: sending banks charge $25–$50, intermediary banks add $5–$15 each, and receiving banks may deduct an additional $10–$25.

• Speed. 1–5 business days, depending on the corridor and cut-off times.

• Exchange rates. Banks often apply a markup of 1 percent–4 percent over the mid-market rate.

SWIFT remains a reliable choice for high-value transfers to virtually any country, but the combined fees and markups can exceed 5 percent of the amount sent.

Fintech Remittance Services

In the past decade, fintech players have disrupted the remittance landscape by leveraging digital rails, peer matching, and minimal exchange-rate markups. Their average costs are often half that of banks.

Wise (formerly TransferWise)

• Fee structure. Transparent: a small percentage of the transfer (0.35 percent–1.2 percent) plus a fixed fee (usually $1–$2).

• Exchange rate. Mid-market rate with no markup.

• Delivery speed. Minutes to one business day, depending on corridor and funding method.

• User base. Over 16 million customers globally.

Kristo Käärmann, CEO and co-founder of Wise, explains:

“In finance, the counterintuitive truth is cheaper product == better product. Since April we’ve adjusted fees across most of the routes on Wise…We were able to lower the average fees by ~5%…making it cheaper for you to use Wise.” (linkedin.com)

Wise’s digital architecture and peer-to-peer matching allow many routes to cost less than 0.5 percent. That makes it an excellent option when you want —fund your Wise transfer via a debit card, bank debit, or low-fee credit card (subject to card issuer policies), rather than a full cash advance.

Remitly

• Economy service. 3–5 business days, fees from $3 (for $500), exchange-rate markup around 1 percent.

• Express service. Minutes or hours; fees from $3 for smaller amounts, higher markups (1.5 percent–2.75 percent).

Competitive for corridors to Asia, Latin America, and Africa. Users can fund via bank debit or card.

WorldRemit

• Fees. $3–$5 for most major corridors, plus exchange-rate markup of 0.5 percent–2 percent.

• Speed. Instant to a few hours for mobile wallet or debit card; 1–3 business days for bank deposit.

Popular for mobile-money payouts in Africa and Asia.

OFX, CurrencyFair, XE

• OFX. No fixed fees; typical spread 0.4 percent–0.8 percent above mid-market.

• CurrencyFair. Peer-to-peer orderbook model; spreads as low as 0.2 percent.

• XE. No fees for large transfers (over $1,000); spreads around 0.9 percent.

Ideal for high-value transfers where variable spread costs lower than fixed fees.

Peer-to-Peer Payment Apps

For domestic or near-domestic sending, peer apps can be instant and free, though rarely suitable for cross-border remittances.

• PayPal. 2.9 percent + $0.30 per transaction for domestic personal payments; cross-border: 5.0 percent plus fixed fee, and currency conversion markup up to 4 percent.

• Venmo. Free for bank-linked transfers; 3 percent for credit-card funding. Not available for international transfers.

• Zelle. Instant and free, but only between participating US banks.

• Cash App. Free for bank-linked transfers; 3 percent plus $0.25 for credit-card funding. Only domestic US.

When using peer apps, avoid credit card transfers funding—opt instead for bank debit or existing app balance to sidestep the 3 percent credit-card fee.

Cryptocurrency and Stablecoins

Crypto offers borderless value transfer with low on-chain fees, though recipient tech familiarity is required.

• Bitcoin (BTC). Average network fee $2–$10; delivery in 10–60 minutes. Recipient must convert BTC to local currency via exchange or OTC.

• Ethereum (ETH). Gas fees fluctuate widely; often $5–$20 when network is busy. Delivery ~15 minutes.

• Stablecoins (USDT, USDC, BUSD). ERC-20 or Tron-based: fees from a few cents to $2; delivery in minutes.

Total cost often under 1 percent if on-ramps/off-ramps are efficient. For instance, using a Tron-based USDT transfer plus local peer exchange can yield sub-0.5 percent total cost against the dollar. However, recipient needs wallet and exchange access.

Prepaid and Reloadable Debit Cards

International reloadable cards—like Visa/Mastercard prepaid products—allow you to load foreign currency or USD to a card, send it, and recipient uses it like a debit card.

• Issuance fee. $5–$10.

• Reload fee. 1 percent–3 percent per top-up.

• ATM withdrawal fee. $2–$5 per withdrawal, plus currency fee.

• Reload speed. Instant to one business day.

Convenient where banking infrastructure is limited, though reload and ATM fees add up. Best used for known cash needs rather than ad hoc amounts.

Money Orders and Postal Transfers

Traditional postal money orders (e.g., USPS International Money Order) can reach global destinations:

• Fee. $10.50 for international money orders up to $700.

• Delivery. 2–4 weeks by mail.

• Exchange rate. Bank-set rate, often poor.

Slow and subject to mail reliability—generally superseded by digital services.

Strategies to Avoid Fees on Credit Card Transfers

If circumstances force you to use a credit card—say, for rewards points—employ these tactics to avoid fees on credit card transfers:

1. Use cards with no foreign transaction fees. Many travel cards waive the 1 percent–3 percent currency fee.

2. Fund transfers as “purchase” rather than cash advance. Some fintech platforms permit credit-card funding as a purchase, not a cash advance; check issuer’s terms and choose cards accordingly.

3. Leverage promotional offers. Some remittance services run fee-waiver promotions for new users or certain corridors.

4. Pay down the transfer amount before billing cycle. If you must use a cash advance, pay it off before the statement posts; interest accrues daily, so even a few days saved reduces costs.

5. Combine with cashback rewards. Calculate whether earning 1.5 percent cashback offsets a 2 percent cash-advance fee on a short-term basis.

By mixing debit funding, promotional deals, and targeted credit-card use, you can often reduce your overall cost below the headline cash-advance fee.

Comparative Fee Snapshot

Voices from the Experts

“The resilience of remittances underscores their importance for millions of people,” says Dilip Ratha, lead economist and author of the World Bank’s Migration and Development Brief. “Leveraging remittances for financial inclusion and capital market access can enhance the development prospects of recipient countries.” (worldbank.org)

According to the World Bank, in Q4 2023 the global average cost of sending $200 was 6.4 percent, above the SDG target of 3 percent. Digital remittances averaged 5 percent, while non-digital methods cost 7 percent—highlighting the cost savings possible through platforms like Wise, Remitly, and others. ()

Kristo Käärmann recalls the genesis of Wise when he and Taavet Hinrikus developed a solution “to avoid paying bank fees” on cross-border transfers: “We started Wise to make the best tool for moving and managing the world’s money…We made it cheaper for you to use Wise.” (info.gov.hk)

How to Choose the Right Option

When evaluating alternatives, consider:

• Transfer corridor. Some corridors—such as US→Mexico—have intense competition and low fees; others—like US→Pacific islands—remain expensive.

• Speed requirement. If same-day or instant delivery matters, digital wallets and crypto may prevail.

• Payment method. Bank debit is generally cheapest, followed by debit cards; credit cards carry risk of cash-advance fees.

• Recipient access. Does the recipient have a bank account, mobile wallet, or crypto wallet? Tailor the method to local infrastructure.

• Total cost transparency. Platforms with mid-market rates and clear fees (Wise, CurrencyFair) eliminate surprises.

By weighting these factors against your personal priorities—speed, cost, convenience—you can avoid the hidden charges of and instead leverage services designed for efficient, low-cost money movement.

Final Reflections

Moving money without relying on credit cards can save hundreds of dollars annually for frequent remitters. Bank transfers offer reliability, fintech platforms deliver low-cost digital rails, peer apps provide instant domestic movement, and crypto unlocks near-borderless speed—all with fee profiles often far below 5 percent of the amount sent. Combining the right service with strategic funding and timing lets you avoid and ensure the recipient gets the most value possible.

Consider your corridor, urgency, and recipient’s capabilities. Test small transfers first to confirm delivery times and fees. Harness promotional offers and cards without foreign transaction fees. Above all, stay informed: “sending remittances remains too costly,” but with innovation and informed choices, you can keep your costs under control and your transfers swift.