Whether you would like to send money locally or overseas, there are several options to choose from. The world has become a global village, and improved technology has enabled people to send money online with credit card. Such processes are quick and can take a maximum of 5 minutes. Transaction times depend on the type of platform you have opted to use. Before making a transfer, the following personal information may be required from you:
- Email address
- Physical address
- Phone number
- Alternative phone number
- Identity card for verification purposes
For some platforms such as Google Pay, once the transaction is complete, the receiver can transfer money from checking account to a prepaid card online.
The main factors to consider when choosing a money sending platform are the location of the receiver and the nature of the money sent. In some platforms, these two factors will determine how much commission you will part within the course of the transaction. For instance, when sending money via Western Union, the further the location of the receiver, the higher the amount of commission. This is contrary to PayPal, whereby the location of the receiver does not affect the commission. Instead, the commission is based on the amount sent. The higher the amount you want to send, the more commission you will be charged.
Some online platforms such as Zelle do not have e-wallets. But if your bank is registered with the latter, you can send money to bank account on the same day
Top 10 Best Ways To Send Money Online With Credit Card
The nature of the money may vary from gift to other uses. In Western Union, if the money is sent as a gift, the receiver will not be deducted taxes when withdrawing it. Most people tend to use this trick when sending money via Western Union so that the receiver is not charged withdrawal taxes. On the other hand, the receiver of money sent via PayPal will be charged withdrawal commission regardless of the nature of the funds. These two platforms are just some of the popular ways to send money online with credit card. Listed below is a comprehensive list of the top 10 ways to send money online. We shall look at the features of these platforms and their commission rates. By the end of the article, you should be able to decide on what online platform best serves your needs.
1. Zelle Pay
Zelle is different from most online money transfer services as it eliminates the need for an e-wallet. With this platform, you can directly transfer your money from one credit card to another. To initiate transfers, all you need to have is the phone number and email address of the receiver. Once you complete the transaction, the receiver shall get a payment link to accept the money. If the recipient bank is in collaboration with this platform, the funds shall be immediately loaded to the receiver’s bank account.
The downside to Zelle money transfer is that the recipient bank must be affiliated with the platform. The transfer usually reflects in 1-2 days. User s also ought to have a MasterCard or Visa credit card. Zelle has a maximum limit of $2000 per day and $16000 per month.
PayPal is one of the most popular money transfer platforms globally. Having a client base of well of 267 million accounts worldwide, this platform has attractive features which keep more clients signing up on it. The platform can send over 25 currencies, the US Dollar being the most commonly used. As of 2019, PayPal is available in 202 countries and makes e-commerce more popular as it can operate it in various languages.
This young company was launched in 1998, and till date, it has bagged well over 20 awards for continued excellent service to its customers.
PayPal Transaction Fees
Sending money from one PayPal account to another PayPal account incurs no commission. However, in the course of trying to send money online with credit card to the PayPal account, a commission of 2.9% of the total will be charged. Withdrawing money from your PayPal to your credit card will also be charged. The commission rates for such a transaction are dependent on the type of bank you’re with.
Contrary to PayPal, Walmart money transfer requires a starting fee of $4.00. Money sent via this platform can be sent to fellow Walmart account holders in over 200 countries.
Walmart Transaction Fees
|0$ – $50||$4|
|$51 – $1000||$8|
|$1001 – $2500||$16|
The receiver of the money has various withdrawal options such as:
- Account Deposit
- Home delivery
- Mobile wallet
How to Send Money via Walmart Money Transfer
The first step is to locate a Walmart store near you. Next, visit either the Money Transfers Center or Customer Service Desk. You need to carry a form of identification with you. Once your identity has been verified, choose the mode of payment. This can be done either through a PIN-based credit card or the US currency.
The only downside to Walmart money transfer is that you can only send a maximum of $2500.
4. Google Pay
This service was set up by Google to allow its users to send each other money easily. It works by linking a bank account of your choice to your Google Pay. Once the e-wallet has been loaded, you can start the transaction process to your credit card. This service is more popular compared to other e-wallets as users can link at two bank accounts.
How to Use Google Pay
One has to first download Google Pay from the app store. Once the app has been successfully downloaded, you will be required to set up a personal identification number (PIN). This code shall be your password when carrying out your transactions. It must, therefore, remain private.
Google Pay is one of the safest modes of online money transfer. Your personal data is stored on secure serves, and your credit card information will never be shown on the app.
Transaction Charges for Google Pay
Inter-wallet transfers on Google Pay have no charges. However, you will be charged a commission of 2.9% for transferring money from your e-wallet to the linked bank account. Google Pay limits users to $10000 per transaction.
The downside to Google Pay is that the service is only available in the United States, the United Kingdom, and India.
TransferWise is an online money transfer service based in the UK. The international platform not only deals with money transfer but also cryptocurrency. Money can be sent through different currencies such as the US Dollar, Canadian Dollar, South African Rand, Japanese Yen, among others.
TransferWise Transaction Fees
Transaction fees on this platform are not fixed like that of PayPal. The commission will depend on the amount of money sent and the location of the receiver. This commission is made up of a small amount of fee that is usually fixed, and a small percentage of the transfer amount.
For instance, a person sending $1000 US Dollars to Canada would pay a $1fixed fee together with a 0.6% commission. The total commission incurred would be $6.96.
The maximum amount transferable via TransferWise is $199,999.
Dwolla is similar to Zelle in that you can directly send money from your credit card to the credit card of the person you would like to pay. If the transaction costs less than $10, there shall be no commission charges.
This online service continues to gain popularity due to its low rates. When the company launched, it had a transaction of over $1 million during the first week alone. For every transaction above $10, users are charged a commission of only $0.25.
Downsides to Using Dwolla
The platform has a transaction limit of $300 per day and a monthly limit of $3000. This may not be a favorable limit for businesses as they are bound to transact a lot more than that.
However, if your personal account is verified, you can send up to $5000 per week. Verified business accounts can also make a maximum transaction of $10000 weekly. The only challenge that may arise from this is that the process of verification may take a while to process. This is why most people and businesses opt to transact on unverified accounts. Once the account gets verified, you can apply to increase your transaction limit.
Venmo is a relatively new platform in the market. During the first six months of 2018, this platform processed well over $26 billion. You can transact by either downloading the Venmo app or signing up on the Venmo website. Once the account is created, link your debit or credit card. Successful linking will give you the go-ahead to start transacting.
Venmo Transfer Charges
Sending money via Venmo will set you back a 3% commission fee. This rate is fixed, which means that the more money you send, the more commission you will pay.
Money sent will reflect in the recipient’s debit card in 1-2 business days.
MoneyGram is an international platform that boasts of tens of millions of clients worldwide. Other than sending money to different credit cards, the platform can also be used to pay bills.
How to Send Money via MoneyGram
To send money through credit card, you will first have to sign up on the MoneyGram Website. Next, you will put down the wallet address of the receiver. Select the option of paying via card. This means that the money from your credit card will be sent to the credit card of the receiver. You will then be required to provide verification documents to avoid cases of fraud. You can either submit a national identity card or a passport. Once identification is verified, you will enter the amount to be sent.
Money sent via MoneyGram will reflect in 1-2 days on the recipient’s credit card.
9. Western Union
Western Union is one of the oldest platforms for online money transfer from debit card. Launched in the year 1851, this international platform covers the most number of countries in the globe.
Western Union Transaction Fees
The transfer fees of a transaction carried out through Western Union are dependent on three main factors:
- Location of the receiver. If the receiver is farther away from you, the commission rates will be high.
- Type of transfer. Different kinds of transfers serve different purposes. For instance, if the money received by was one’s salary, he will be subjected to extra tax fees. On the other hand, money that is sent as a present cannot be taxed, as mentioned earlier.
- Whether the money was sent from an agent or the website, sending money directly from the site is the best option for online money transfer from debit card. All you have to do is sign up on Western Union website, link your debit card and start the transactions. Going to an agent will cost you extra money as you will be deducted agent fees.
In a bid to curb the war on terror, the company has set up new policies to verify the user’s identity. If you do not provide the correct telephone information, tour transactions will be barred.
10. Facebook Messenger
Facebook Messenger is one of the free platforms used to send money online with credit card. The following conditions must be met for you to qualify to use Facebook Messenger money transfer:
- You and the receiver must be friends on Facebook
- You must be at least 18 years old
- You must first fund your account with either a debit or credit card.
- The transactions can only be in US Dollars, Euros or Pounds.
How to Make Payments on Facebook Messenger
The first step is to start a conversation with the person you’d like to send money to. Right above the keyboard, you will see a ‘$’ sign. Click on it and enter the amount you would like to send to that person. Lastly, click ‘Pay,’ and the transaction is complete.
The receiver will get the payment notification. He will then be required to enter his debit card information after which the funds will be transferred to the card.
Advantages of Using Online Money Transfer from Debit Card
- The process is secure. Online platforms are encrypted with secure servers. It is therefore impossible for anyone to acquire your credit card information.
- The process is fast. Money usually reflects in the account in 2 days.
Factors to Consider When Sending Money Online via Credit Card
- The Rates and Commissions
Different companies have different rates. Some have fixed rates, while others determine their rates based on the amount of money you would like to send. Or instance, Venmo has a fixed rate of 3% while TransferWire determines the rate based on the transaction amount. You may first have to calculate which one will cost you less and then settle on that payment method.
- The nature of the Money Sent
If you are sending money to a relative or friend as a gift or token of appreciation, Western Union is your best choice since gifts are not charged withdrawal fees. The only commission fees incurred will be the one paid by the sender.
On the other hand, if you are an employer sending money to an employee, any mode of money transfer is acceptable.
- Location of the Receiver
While most platforms are international such as Western Union, some do not accommodate people from various continents. For instance, Google Pay only supports transactions in the UK, US, and India. You must first look up whether the platform will accommodate the receiver.
There are plenty of online platforms for sending money online. You have to take your time to research on the one that will incur you with the least expenses.