What you can do and what it costs

You can move money from a credit card to a bank account, but it is not the same as a refund. You are borrowing against your credit limit, and the transaction usually costs money upfront. The most common methods are a cash advance, a balance transfer check, or a third-party payment app — each one charges a fee and treats the money as a loan you owe back with interest.

A cash advance lets you withdraw cash at an ATM or bank teller using your credit card PIN. You pay a fee (usually 3 to 5 percent of the amount) plus a higher interest rate than regular purchases — often 20 to 30 percent annually. Interest starts accruing immediately, with no grace period like you get on regular purchases.

A balance transfer check is a check your credit card company mails to you that you can deposit into your bank account. It also charges a fee (typically 3 to 5 percent) and carries a promotional interest rate for a set period, then a higher rate after. The fee is added to your credit card balance.

Key Takeaways

  • Cash advances and balance transfer checks both cost 3 to 5 percent in fees plus interest that starts immediately, making them expensive ways to move money.
  • Payment apps like PayPal, Venmo, or Square Cash can transfer money to your bank account, but they charge a fee if you fund the transfer with a credit card instead of a debit card or bank account.
  • Interest on credit card cash advances has no grace period and accrues daily, so the longer the money sits in your bank account, the more you owe.
  • If you need money urgently, a personal loan or line of credit from a bank typically costs less than a credit card cash advance.

Cash advances: the fastest but most expensive route

A cash advance is the quickest way to get money into your bank account. You can withdraw cash at any ATM that accepts your card, then deposit it yourself. Some banks also let you ask a teller for a cash advance over the counter. The money is available immediately.

The cost is steep. You pay a flat fee per transaction (often $5 to $10) plus a percentage of the amount (3 to 5 percent). On a $500 advance, you might pay $15 to $35 in fees alone. Then interest starts accruing the same day at a rate that is usually 5 to 10 percentage points higher than your regular purchase rate. If your card charges 20 percent on purchases, the cash advance rate might be 25 or 30 percent.

Unlike a purchase, there is no grace period. Interest compounds daily. If you leave $500 in your bank account for a month before paying it back, you will owe roughly $12 to $15 in interest on top of the initial fees.

Balance transfer checks: slower but sometimes cheaper

Your credit card company may send you checks that draw against your credit line. You write one to yourself, deposit it into your bank account, and the amount appears as a balance on your credit card. The fee is 3 to 5 percent, charged upfront and added to your balance.

The advantage is the interest rate. Many balance transfer checks come with a promotional rate — sometimes 0 percent for 6 to 12 months — if you meet the card's terms. After the promotional period ends, the rate jumps to the card's standard rate. This makes balance transfer checks cheaper than cash advances if you can pay back the money before the promotional period ends.

The downside is timing. The check takes 3 to 7 business days to arrive, then another 1 to 3 business days to clear once you deposit it. If you need money today, this method will not work.

Payment apps and peer-to-peer transfers

Apps like PayPal, Venmo, Square Cash, and Google Pay let you send money to your bank account, but the fee depends on how you fund the transfer. If you link a bank account or debit card, the transfer is free or costs a small flat fee ($0.25 to $1). If you fund it with a credit card, the fee jumps to 2 to 3 percent.

The transfer itself is not a loan — the money comes from your credit card balance immediately, just like a purchase. But because you are using a credit card, you are borrowing that money and will owe it back with interest. The app does not charge interest; your credit card company does.

This method works if you have a credit card with a 0 percent introductory rate on purchases, because then you can move money to your bank account without paying interest for the promotional period. Otherwise, the 2 to 3 percent fee plus regular purchase interest makes it more expensive than a cash advance.

When to use each method

Use a cash advance only if you need money today and have no other option. The fees and interest are high, but the money is available immediately.

Use a balance transfer check if you have time to wait for the check to arrive and your card offers a 0 percent promotional rate. Pay back the full amount before the rate increases.

Use a payment app only if you are funding it with a debit card or bank account, not a credit card. If you must use a credit card, only do it if the card has a 0 percent introductory rate on purchases.

If none of these options make sense, consider a personal loan from a bank or credit union instead. Personal loans typically charge 6 to 36 percent interest depending on your credit, which is often lower than a credit card cash advance rate. The loan is also a fixed amount with a set repayment schedule, so you know exactly what you owe each month.

How to avoid needing to do this

Moving money from a credit card to a bank account is expensive because you are borrowing money at a high rate. The better approach is to build a small emergency fund in your bank account so you do not have to borrow when unexpected expenses come up.

If you are using a credit card to move money because you are short on cash, that is a sign to look at your budget. A credit card cash advance or balance transfer is a short-term fix that costs money and can lead to debt if you cannot pay it back quickly.

Frequently Asked Questions

Does moving money from a credit card to my bank account count as a purchase?

No. Cash advances and balance transfers are treated as loans, not purchases. They charge higher interest rates and have no grace period. Payment app transfers funded by credit card are treated as purchases for interest purposes, but the app itself charges a 2 to 3 percent fee.

Can I transfer money from a credit card to a bank account for free?

Not directly. All methods charge a fee or interest or both. Your only free option is to use a payment app funded by a debit card or bank account, but that defeats the purpose of moving credit card money.

How long does it take for the money to show up in my bank account?

Cash advances appear immediately at an ATM or teller. Balance transfer checks take 3 to 7 days to arrive, then 1 to 3 days to clear. Payment app transfers typically clear within 1 to 3 business days, though some apps offer instant transfers for a fee.

What happens if I do not pay back the money I moved?

You owe it back with interest, just like any credit card balance. Interest accrues daily and compounds. If you miss a payment, your credit score drops and late fees apply. The debt can grow quickly if you only make minimum payments.

Is there a limit to how much I can transfer?

Yes. Your credit card company sets a cash advance limit, which is often lower than your total credit limit — sometimes 20 to 50 percent of it. Check your card's terms or call the number on the back of your card to find out your limit.