How to Send Money from a Credit Card to a Bank Account

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Written by Enoch Omololu

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Main Highlights

  • Transferring money from a credit card to a bank account is an option in Canada.
  • There are two ways to do this online: via online banking or a third-party wallet like PayPal.
  • There are three ways to do this offline: via an ATM, over the phone or with a cheque.
  • You may also be able to transfer money directly from a credit card to a debit card.
  • However, beware of fees, including cash advance fees and high-interest rates for cash advances.

Transferring money between bank accounts is a simple enough process in Canada. But what about transferring money from a credit card to a bank account?

You may not have realized it, but this is possible, and there are several ways to go about it. But why would you want to do this?

One reason is you may not have enough money in your account to pay for something important. If you must pay for it from your bank account or in cash, you might want to transfer the money from your credit card first.

In this guide, we look at several ways to transfer money from your credit card to a bank account, both online and offline. We’ll also look at the potential fees you may have to pay.

How to Transfer Money from a Credit Card to a Bank Account Online

One of the simplest ways to transfer money from a credit card to a bank account instantly is online.

If you are confident using online banking services, you will probably find this the most convenient option. You will need an internet connection, and you may need your banking app.

There are three key ways to transfer your money online:

Online Banking

The most convenient option for many people is to use online banking. Most Canadian banks offer online banking services that are easy to use, so there’s no need to visit your bank branch or an ATM.

Simply sign into your online banking platform on a computer or mobile app, and then transfer the money from your credit card to the account in a few simple steps.

Start by going to the transfer section, then choose to transfer from your credit card account to a bank account and follow the directions.

You could also transfer the money into your bank account in this way before transferring it into another account.

PayPal

E-wallets like PayPal provide another convenient way to transfer money into a bank account. However, PayPal is more suitable for sending money to another person using your credit card than sending money to your own account.

If you have a PayPal account, you will want to add your credit card in the settings. You can then transfer money directly to another PayPal user by choosing your credit card as the funding method.

Other services that enable you to send money from your credit card to a bank account include Paysend and Wise.

How to Transfer Money from a Credit Card to a Bank Account Offline

If you would rather stick to offline options to transfer money from a credit card to a bank account in Canada, you have several to choose from:

ATM Cash Advance

One of the easiest options is to visit an ATM. You can use your credit card to withdraw cash from an ATM called a cash advance.

Insert your card, enter your PIN, and withdraw as much as you need up to your limit.

Once you have received the cash, you can deposit it directly into your account. You may be able to do this at the same ATM, or you might have to visit your nearest branch.

Call Your Bank

You may prefer to do your banking over the phone instead of online. In this case, you can call the bank.

Just request a fund transfer, choose to send money from your credit card account to your bank account, and provide any information required. Then you can confirm the transaction over the phone to send the money.

Send a Cheque

You can also use a credit card cheque if you prefer. Your card provider may issue these, and writing a cheque is another way of paying for something with your credit card.

Just write a cheque for however much you want to transfer and deposit it at your branch. The money will be taken from your credit card account and deposited into your bank account.

How to Transfer Money from a Credit Card to a Debit Card

What about transferring money from a credit card to a debit card? The process is similar to transferring money to a bank account because debit cards are normally linked to bank accounts.

But there are options to send directly to a debit card, and you may be able to do this via your bank.

Or you could use a service like Moneygram or Paysend. As long as you have the recipient’s card details, you could send the money directly to their card this way.

You could also transfer money to your bank account and then transfer it directly to the recipient’s debit card, perhaps using a service like Visa Direct.

Fees for Sending Money from a Credit Card to a Bank Account

There may be several fees associated with sending money from a credit card to a bank account:

  • The money will be treated as a cash advance, which means you will normally start paying interest immediately with no grace period.
  • The interest is often higher for cash advances than purchases, adding additional expense to the transfer.
  • There will usually be a cash advance fee, which could be anything from $2.50 to $5 on average.

Because of these additional expenses, it’s best to only transfer money from a credit card when you really need to. You may want to find out if you can borrow the money from a family member or ask about getting an overdraft as an alternative.

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Enoch Omololu

Enoch Omololu is a personal finance expert. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. Enoch is passionate about helping others win with their finances and has written about money matters for over a decade. He has been featured or quoted in The Globe and Mail, CBC News, Yahoo Finance, GO Banking Rates, Financial Post, Bankrate, Forbes, Toronto Star, CTV News, and other personal finance publications. He founded Savvy New Canadians, one of Canada’s top financial education platforms.

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