Funding your transfer: Credit card vs. bank account – Pros and cons

When sending money internationally, your choice between a credit card and a bank account can have a real impact on how much your loved ones receive and how quickly they get it. Each method comes with its own mix of fees, exchange rates and speed. Credit cards offer fast access to funds, especially in urgent situations, but often at a higher cost. Bank accounts, on the other hand, typically mean lower fees and better value for regular support, helping you make thoughtful decisions about caring for family abroad.

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Credit card and bank account basics

You can fund international money transfers using either a credit card or your bank account. Credit cards let you borrow money from your card issuer to send funds right away, while bank accounts pull money directly from your checking or savings.

Credit cards are a good option for urgent transfers when your bank balance is low. You can also save on fees for regular transfers to family in Africa, Asia and Latin America. For example, if you frequently send money to the DRC from the US, you'll save on cash advance and interest fees compared to credit cards.

• Credit card transfers: Borrow money to send immediately

• Bank account transfers: Use your own money with lower fees

• Exchange rates: Apply to both methods and vary by destination

Pros of choosing a credit card

Credit cards give you access to funds even when your bank balance is low. You can send money to family right away without waiting for your next paycheck.

Many credit cards offer rewards points or cashback on purchases, including money transfers. This means you earn benefits while supporting loved ones abroad.

Credit card companies provide strong fraud protection. If something goes wrong with your transfer, you can dispute the charge and often get temporary credits while they investigate.

Cons of choosing a credit card

Credit card transfers often cost more than bank account transfers. Some card issuers treat international money transfers as cash advances, which means higher fees and interest charges from day one.

Using credit creates debt you'll need to pay back with interest. If you're already thinking about balance transfers, remember that adding international transfer costs to existing debt can make your finances more complex.

• Cash advance fees: Often 3-5% of the transfer amount

• Higher interest rates: Start immediately, no grace period

• Credit utilization: Affects your credit score if balances get high

Some credit card companies block international money transfer transactions as a security measure. You might need to call your bank to authorize the transfer, which delays getting money to your family.

Pros of choosing a bank account

Bank account transfers typically cost less than credit card transfers. You avoid cash advance fees and interest charges since you're using money you already have.

You avoid taking on extra debt when you use your bank account. The money comes directly from your savings or checking, so you won't face monthly credit card bills.

Bank transfers help you stick to your budget. You can only send what you have, which prevents overspending on support for family abroad.

With modern money transfer services, bank account transfers can be just as fast as credit cards. Many services process transfers in minutes, getting money to your loved ones when they need it.

Bank accounts give you peace of mind knowing you're sending money you actually have. This transparency helps you plan better for regular support and keeps your finances healthy while caring for family abroad.

Cons of choosing a bank account

You need sufficient funds in your account before sending money. If your balance is low, you'll need to wait until your next deposit or transfer money between accounts.

Some traditional banks limit how much you can transfer daily or monthly. However, many dedicated money transfer services offer higher limits and simpler processes, making it easier to support family when they need larger amounts.

Factors to consider before you decide

Think about how often you send money abroad. If you transfer funds monthly to support family, bank account transfers usually offer better value due to lower fees over time.

Consider your current financial situation. If you're asking yourself if it is good to transfer a credit card balance or are balance transfers bad, adding transfer costs might not be wise when you're already managing debt.

• Frequency: Regular senders benefit from bank account savings

• Urgency: Emergency situations may require credit card speed

• Amount: Larger transfers make fee differences more significant

Decide what matters most for each transfer. When your family needs money immediately for medical bills or emergencies, credit cards provide speed despite higher costs.

Security and fraud protection

Always use licensed money transfer services regardless of your funding method. Look for services that encrypt your information and require identity verification.

Keep your banking and credit card details private. Never share account information through email or unsecured websites when setting up transfers.

Credit cards generally offer stronger dispute protection than bank accounts. If unauthorized charges appear, credit card companies typically resolve issues faster and provide temporary credits during investigations.

A quick recap of both methods

Credit cards offer speed and convenience but come with higher costs and potential debt. Bank accounts provide better value and help you avoid borrowing while keeping your finances straightforward.

Your choice depends on how often you send money, the amounts you typically transfer and your comfort with credit. Whether you're wondering if a balance transfer is a good idea or is it wise to transfer credit card balances, remember that international transfers add another layer to your financial decisions.

At Sendwave, we make it easy to send money using your bank account with a linked debit card. We offer affordable transfers with low or no fees in many countries, though currency exchange margins and other costs vary by destination corridor.

Ready to support your loved ones? Download the Sendwave app to start sending money with confidence using your bank account.