Money

How To Pay A Friend With A Credit Card

Updated on December 3, 2020 by
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Want to send money to your friends and family with a credit card? There are a few peer-to-peer payment apps that allow you to pay your friend without cash or bank transfers. These payment apps are convenient to use and make sending money with a credit card a breeze. Let’s take a look at the best options.

PayPal

PayPal is great for sending money electronically to your friends. You will have to sign up for a free account and link a credit card to pay your friend. An important thing to note is that using a credit card to send payments will cost you 2.9% plus $0.30 for every transaction.

Your friend you are sending money to will also need a PayPal account. To send the payment, you need to get the phone number or email address of your friend. Here is how you can send cash.

  1. Log in to your PayPal account and choose the “Send and Request” option.
  2. Now choose the option “Send to friends and family internationally/ in the US.”
  3. Enter the email address or phone number of your friend and the amount you want to pay them.
  4. Hit “Continue.”
  5. Now confirm all your details and hit “Send Money Now.”
  6. You will get a confirmation email from your account.

Venmo

Venmo is a peer to peer payment app that requires you to sign up for an account through your email or Facebook. While there are no fees for sending cash using a debit card, there is a 3% fee for using a credit card to send money. Most importantly, you and your friend you are sending money to should have the app in order for you to send the payment.

However, you should know that the payment service makes all your transactions public by default. Fortunately, you can change preferences to make your transactions visible only to two parties involved in a transaction or to your friends.

Cash App

Previously called Square Cash, Cash App accepts debit as well as credit cards. And you can download this app free of cost. The Cash app is available on Android and Apple mobile devices. After downloading the Cash app, you need to link your credit card to the app account.

You can send cash using a $Cashtag, which is a special identifier so you can make secure and private payments. You can use a credit card to send cash. However, it is important to note that there is a 3% transaction fees on sending cash using a credit card. Apart from that, the mobile payment service is free to use.

After downloading the cash app and opening an account, fill in the amount you want to send to your friend. The friend you are sending money to also requires the app, and you will have to enter their $Cashtag, email, or mobile number to ensure that the payment is made to the right individual.

Facebook Pay

Facebook Pay is a peer to peer payment service that allows you to send money to your friends on WhatsApp, Messenger, Instagram, and Facebook.

You need to follow the below-mentioned steps to begin using Facebook Pay on Messenger and Facebook.

  1. Go to Messenger or Facebook and choose “Settings.”
  2. Choose the “Facebook Pay” option.
  3. Choose your preferred payment method – credit card and finish the payment setup.
  4. Choose a friend you want to send cash to.
  5. Input the amount you want to send.
  6. Click Pay.

The payment app is compatible with most credit cards together with other payments platform such as PayPal. What’s more, you can use your phone’s biometrics or add a PIN for authentication or an additional layer of security while sending money to your friend. The social network does not store or get your device’s biometric information.
And the good news is that there are no fees to send money to friends on WhatsApp or Messenger.

Furthermore, Facebook employs advanced technology to keep your account payment information safe and secure. Facebook Pay is designed to safely encrypt and store your credit card number and bank account numbers, carry out anti-fraud checks on Facebook’s systems to identify unusual activity, and provide notifications for account activity.

You will be able to view your transaction history and payment within Facebook Pay. Moreover, the payments will not be shared on the feed or with your friends, unless you opt to do so.

Western Union

The FinTech company, Western Union, offers numerous ways to send money to friends, including through its mobile app, over the phone, or online. There is an option to use a credit card to send money to your friend.

You can send cash to a bank account, a mobile wallet, or to a location for a cash pickup. The important thing to note is that you should be 18 years or older to send cash through Western Union.

You need to create your Western Union profile to send money online.

Steps to send money to a bank account using your credit card

  1. Make sure you have all the bank details of your friend.
  2. Register or log in and hit ‘send now’ to begin your transfer.
  3. Enter the amount and destination.
  4. Choose delivery ‘bank account' and enter the bank details of your friend.
  5. Pay by your credit card.
  6. A confirmation email will be sent to you with the tracking number of your transaction. You should share the transaction number with your friend to track the money.

Steps to send money for cash pick up

This is a convenient option when you need to send cash quickly.

  1. Log in and hit ‘send now’ to begin your transfer.
  2. Enter the amount and destination. After that, select payment by card and cash pick up.
  3. Enter the address and name of your friend.
  4. Pay with your credit card.
  5. A confirmation email will be sent to you with the tracking number of your transaction. You should share this number with your friend to track the cash.

Steps to send money to a mobile wallet

You can also send cash to your friend’s phone if they have a mobile wallet from one of the partners of Western Union, and reside in a country where this is available.

  1. Check available mobile operators and destination countries.
  2. Log in and click ‘send now’ to start your transfer.
  3. Enter the amount (up to $500) and destination, and select the mobile wallet as the delivery method.
  4. Enter the mobile number and name of your friend.
  5. Pay with your credit card.
  6. You and your friend will receive a confirmation alert via text notification when the cash is delivered.

A few important considerations

You need to take into account several factors when choosing a payment app. First, you will want to ensure that the payment app works well with your mobile device. For example, Apple Pay is not compatible with Android phones and devices. Apart from this, you will also want to consider how much the payment app cost to use. While some payment apps are free, other apps may charge fees to get or send money. Last but not least, payment apps may have restrictions as to how much money you can send within one month, week, or day.

Some useful tips to keep in mind when sending money to friends

Keep track of your money

Keep track of any cash you send to your friend. Verify that they got the money and were able to access it. If you experience any problems, you will have the information on hand to handle them efficiently.

Send money to people you are familiar with

Generally, payment apps offer options to send money to other people; however, it's good to restrict your usage to getting or sending money to people you are familiar with.

Stay secure

Security is always an important concern when dealing with money. You need to ensure that any payment service or app you use is safe and that your credit card and bank information is encrypted. Apart from this, if the payment app needs a password, always use a strong password.