Want to Pay a Friend with a Credit Card? Here’s How

Paying a friend with a credit card has its advantages, but the fees might outweigh the benefits. Read on to make sure it’s worth pursuing.

Friends paying each other back at a restaurant
Updated May 13, 2024
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Whether you were at a recent celebration or had to borrow money for an emergency, you’ve probably found yourself needing to pay your friends back at some point. If you don’t have enough cash on hand, don’t fret: You can pay a friend with a credit card, though it may cost you in fees.

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3 ways to pay a friend with a credit card

If you’re looking for ways to pay back friends or family without pulling out your wallet, hitting up an ATM, or paying credit card cash advance fees, just look at your phone.

There are a few payment options to try out and don’t be afraid to use more than one. Sometimes different friends have different apps, so if you want to make it easier on them, be versatile with the ways you can transfer funds.

1. Cash App

Cash App is free to download and accepts credit and debit cards. It’s the No. 1 money app in the App Store, with more than 35 million downloads.

You can send or request money using a $Cashtag, which is a unique identifier so you can make private and secure payments. You can use a credit card to send money, but there’s a 3% transaction fee. The financial app is free to use otherwise.

After downloading the app and creating an account, enter the dollar amount you want to send and set up who it goes to. The person you’re sending money to also needs the app, and you’ll have to enter their phone number, email, or $Cashtag to make sure your money gets to the right person. 

Learn more in our Cash App review.

2. Venmo

Venmo requires you to sign up for an account through Facebook or your email. But it’s free to use, and there’s no charge for transferring money with a debit card. There’s a 3% fee for sending money with a credit card, though, so it's a good idea to use one of the best credit cards for Venmo to help recoup this fee.

Both you and the friend you’re sending money to need to have the Venmo app in order for you to send the payment.

One big differentiator is that Venmo allows you to view public transactions via a newsfeed. You can check up on what your friends and family are paying for, if they allow it to be public (there’s a private option on the transaction if you choose).

Some credit card issuers categorize credit card transactions through Venmo, Cash App, or PayPal as cash advances, which could result in additional fees and higher interest rates in the form of higher APR charges.

3. PayPal

PayPal is one of the oldest financial services for electronically sending and requesting money. You’ll need to sign up for a free account and link a credit card to send money. Paying with a credit card will cost you 2.9% plus 30 cents for each transaction (or more if there’s a currency conversion).

The friend you’re sending money to will also need a PayPal account. It’s a little less user-friendly compared to your other options, especially since PayPal offers so much more than sending electronic payments to friends. Most of its services are geared toward business.

Related: 8 Clever Moves When You Have $1000 in the Bank

3 ways to pay a friend with a debit card or bank account

While Cash App, Venmo, and PayPal all offer debit card transactions at no extra cost, they are the few that allow credit card payments as well.

If you don’t have a credit card or want to save on transaction fees, you have the option of adding a debit card or bank account to send money to friends.

1. Apple Pay

If you have an iPhone, you have a fairly instant way of sending money online. In Messages, you can tap the Apple Pay button in a text conversation with the friend you want to send money to. Enter the amount, then approve the transaction using Touch ID or Face ID.

As long as your friend also has an eligible Apple device with a linked debit card or Apple Cash, the payment is seamless. Your debit card is added to your Apple Wallet so you can avoid manually entering card information when it comes time to send a payment.

2. Google Pay

The Google Pay app allows you to send money to anyone with a phone number or email address. If you’re sending money to another person, Google Pay only allows using a debit card or bank account.

The friend you transfer money to doesn’t need the Google Pay app, but they’ll need a Google account. Your friend will get an email or text once the money is sent and will have to use their Google account to log in and claim their cash.

3. Zelle

To start using Zelle, you may not even need the app. If your bank or credit union allows you to send money with Zelle, you can use your bank’s app to do it. If your financial institution doesn’t offer Zelle, you can download the app to send money. (Check out Zelle’s full list of partners to see if your bank is eligible.)

The friend you’re sending money to doesn’t need to belong to the same bank as you for you to initiate the payment. If your friend already has Zelle (or their bank partners with Zelle), they can get their money within minutes. If they don’t have Zelle, they can download the app, sign up, and enter the banking information where they want the money to go.

If you don't have a checking or savings account or would like to open one, consider using Chime®1 since it charges no monthly service fees2 and has no minimum balance requirements. 

Chime® Benefits

  • Get fee-free overdraft up to $2003with SpotMe®
  • Get paid up to 2 days earlier4than you would with some traditional banks
  • 24/7 live support with a real human
  • FDIC insured through The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC

Are the fees worth it?

The apps listed above all charge fees to use a credit card. Before paying your friend with a credit card, consider how much extra you’re paying to do so.

For example, Cash App charges a 3% transaction fee to use a credit card. That means on a $100 payment to a friend, you’ll pay $3 in fees.

Should you use the app fairly often, those fees can add up: Just $6 in fees every month is $72 a year. That’s a decent chunk of change for the courtesy of paying with a credit card — especially since using a debit card is typically free.

If you prefer to pay a friend with your credit card because you can earn rewards and points, do the math to make sure you’re not spending more than you’re earning by using this payment method. If you pay 3% in transaction fees but only earn 1.5% back in rewards from your credit card company, you’re coming out behind. Even more so if you don't pay off your balance and what you paid your friend becomes subject to a high interest rate charges. In that case, it might make more sense to use a debit card to pay friends back for free.

Related: 8 Brilliant Moves If You Make More Than $5,000 a Month

Paying someone with a credit card FAQ

Can I send money with a credit card?

Yes. There are several platforms you can use to send money with a credit card, from PayPal to Venmo. However, these apps and services charge a fee that is typically a percentage of the amount transacted. For example, Venmo charges 3% when you use your credit card to send money to people. You'll also need to make sure you have enough available credit to send the money.

Can you pay someone on Venmo with a credit card?

Yes. It’s easy and fast to pay someone using a credit card through Venmo. However, keep in mind that while you’ll pay no fees to send money from your debit card or bank account, Venmo will charge a 3% fee on any amount you send with a credit card. If you want to avoid fees, use one of the other options.

Can you pay a friend with a credit card on PayPal?

Yes. You can easily pay a friend with your credit card through PayPal, but you’ll be charged a 2.9% fee per transaction. If you want to send money for free, you’ll need to link a bank account to your PayPal account.

Can you use Zelle with a credit card?

No, you can't use a credit card on Zelle. Zelle uses your bank account to send and receive money from friends and family. This means that you can use a debit card connected to your bank account. If you'd rather use a credit card, you could use alternative payment services such as Venmo or PayPal. Both services allow credit card payments to friends and family, typically for a fee. This fee might be around 3%. 

Can you use a credit card with Cash app?

Yes. You can use a credit card to send money to someone with Cash app. However, keep in mind that Square charges a 3% fee per transaction when you send money with a credit card. To avoid paying fees, use your debit card to add money to your Cash account.

How can I send money instantly?

Many mobile apps and money transfer services allow you to send money instantly, but most charge a fee for instant transactions. That isn’t the case with Zelle, however. You can use Zelle to send money directly from your bank account to any enrolled recipient in just minutes.

If you want to go old school, you could do a wire transfer with Western Union, MoneyGram, or another service. While initiating a wire transfer is very fast, sometimes it can take a couple of business days for the recipient to see the money, especially with international transfers. There are, of course, also wire transfer fees associated with this payment method.

Paying a friend with a credit card: bottom line

While using a credit card to pay friends may sound like a good idea, the fees can add up and put a dent in your personal finances, especially if you carry a credit card balance. Instead, offer to pay for outings with your credit card and ask your friends to pay you back instead. Then you can earn credit card points on your group’s entire bill — and you won’t be stuck with costly transaction fees.

If you find yourself owing friends — instead of them owing you — look into using debit cards instead of credit cards. That way, you won’t get hit with high fees just for the sake of using a credit card.

Author Details

Dori Zinn

Dori Zinn is a personal finance journalist with work featured in Huffington Post, Quartz, Wirecutter, Bankrate, Credit Karma, and others. She loves helping people learn to be better with money.