Yes, but the credit card company charges you for it, and the money comes from borrowed funds

You can transfer money from a credit card to a bank account. The credit card company will process it, the funds will land in your bank account within one to three business days, and you will owe the credit card company that amount plus a fee. The fee is usually 3 to 5 percent of the transfer amount, charged when ready to your credit card balance. Because a credit card is a line of credit, not a savings account, you are borrowing that money at your card's interest rate—which means the transfer costs you money twice: once as an upfront fee, and again as interest if you do not pay off the balance quickly.

Most people transfer from a credit card to a bank account for one of three reasons: they need cash urgently, they want to move money between accounts they control, or they are trying to move a balance to a lower-interest product. The method you use depends on which situation you are in, because the fees and timing differ.

Key Takeaways

  • Credit card to bank account transfers cost 3 to 5 percent as an upfront fee, plus interest on the borrowed amount if you do not pay it back when ready.
  • A cash advance—the most common method—deposits money in your bank account within one to three business days and charges the fee to your credit card balance.
  • Balance transfer checks work the same way but are written to your bank account instead of a merchant, and some cards offer them with lower or zero fees for a limited time.
  • Money transfer services like PayPal or Venmo can move credit card funds to a bank account but add another layer of fees and an extra day or two of processing time.
  • If you are trying to pay down credit card debt, transferring to a bank account and back is expensive; paying the card directly is always cheaper.

Cash advances: the fastest and most common method

A cash advance is a withdrawal of cash or a deposit to your bank account using your credit card. You initiate it at an ATM, through your credit card's app or website, or by calling the card issuer's customer service line. The credit card company treats it as a loan against your available credit, deposits the money in your bank account (or gives you cash), and charges a fee—typically 3 to 5 percent of the amount transferred, though some cards charge a flat fee instead.

The money usually arrives within one to three business days. If you withdraw cash at an ATM, it is available when ready, but an ATM withdrawal is still a cash advance and still carries the fee. The fee posts to your credit card balance right away, so if you transfer $1,000 at a 4 percent fee, you owe $1,040 on your card the moment the transfer completes.

Cash advances also carry a higher interest rate than regular credit card purchases. Your card's standard APR might be 18 percent, but cash advances often sit at 22 to 25 percent. Interest accrues from the day you take the advance—there is no grace period like there is for purchases. If you do not pay off the full amount within a few days, the interest compounds quickly.

Balance transfer checks: lower fees, but only for a limited time

Some credit card issuers send you checks that draw against your credit card balance. You write one to yourself or your bank, deposit it into your bank account, and the credit card company treats it as a balance transfer rather than a cash advance. The difference matters because balance transfer fees are often lower—sometimes 0 to 3 percent for the first three to six months, depending on the card's promotional offer.

Balance transfer checks work on the same timeline as a cash advance: the check clears within one to three business days, the fee posts to your card when ready, and interest begins accruing. The advantage is the lower fee during the promotional period. The catch is that the promotional rate usually applies only to that specific transfer; if you use the card for new purchases, those purchases are charged at the regular APR.

Not all credit cards offer balance transfer checks. If your card does, you will find them in your monthly statement or you can request them by calling the issuer. They arrive by mail, which adds a few days to the process compared to a cash advance initiated online.

Money transfer apps: slower and more expensive

Apps like PayPal, Venmo, Square Cash, and others let you link a credit card and transfer money to a bank account. The process is straightforward: you link both accounts in the app, enter the amount, and initiate the transfer. The money lands in your bank account in one to three business days.

The cost is higher than a direct cash advance. PayPal charges 2 percent for credit card transfers (with a minimum fee). Venmo charges 1.75 percent for credit card transfers. On top of that, your credit card company may charge its own cash advance fee if it classifies the transfer as a cash advance—which most do. You could end up paying 5 to 7 percent in total fees, plus interest on the borrowed amount.

The only advantage of using an app is if you are already moving money through it for other reasons and want to consolidate your transfers. Otherwise, a direct cash advance from your credit card issuer is faster and usually cheaper.

Why transferring to pay down debt is expensive and usually a mistake

Some people transfer credit card money to a bank account, then use that bank account to pay down the same credit card or a different one. This adds unnecessary steps and fees. If you owe $5,000 on Card A and want to move it to Card B, transferring to a bank account first costs you a 3 to 5 percent fee on the transfer, plus another fee when you move the money from the bank account to Card B (if you use a transfer service) or you straightforward pay Card B directly, which is free.

The direct route is always cheaper: ask Card B if it offers balance transfers, initiate one directly from Card B to Card A, and pay the single balance transfer fee. Or pay Card A down using money from your bank account or paycheck. Moving money in a circle through your bank account only increases what you owe.

Timing: when the money actually arrives

Credit card to bank account transfers take one to three business days to clear, depending on the method and your bank. A cash advance initiated online on a Monday morning might land Tuesday or Wednesday. A balance transfer check mailed to you takes longer because the check itself has to arrive first, then clear once you deposit it.

Weekends and holidays do not count as business days. If you initiate a transfer on Friday afternoon, it will not begin processing until Monday. If Monday is a holiday, it does not start until Tuesday. The credit card company's processing time and your bank's receiving time are separate; a transfer that takes two days at the card issuer's end might take another day at your bank.

If you need the money urgently, a cash advance initiated through your card's app or website is faster than a balance transfer check. An ATM withdrawal is fastest but gives you cash, not a bank deposit.

What happens if you cannot pay back the transfer

If you transfer $2,000 from your credit card to your bank account and do not pay it back, you owe that $2,000 plus the transfer fee plus interest on the credit card. The interest rate for cash advances is higher than for regular purchases, so the debt grows faster. After six months of not paying, you might owe $2,500 or more depending on your card's APR.

The credit card company will report the unpaid balance to the credit bureaus, which damages your credit score. If the account goes unpaid for 180 days (about six months), the card issuer will likely charge off the account, meaning they write it off as a loss and may sell the debt to a collection agency. At that point, a collector can pursue you for the full amount owed.

If you are considering a transfer because you need cash, think first about whether you can pay it back within a few weeks. If you cannot, the transfer will cost you more in interest than the fee itself.

Frequently Asked Questions

Does transferring from a credit card to a bank account count as a cash advance?

Yes, unless you use a balance transfer check or a balance transfer offer from the card issuer. A cash advance carries a higher interest rate and a fee. Balance transfer checks sometimes have lower fees during promotional periods, but they are still treated as borrowed money that accrues interest.

Can I transfer from a credit card to someone else's bank account?

No. A cash advance goes to your own bank account or comes out as cash at an ATM in your name. If you want to send money to someone else, you would transfer the funds from your bank account to theirs using a wire transfer, ACH transfer, or payment app. You cannot send a credit card cash advance directly to another person's account.

What is the difference between a cash advance and a balance transfer?

A cash advance is a withdrawal of funds from your credit card's available credit, charged at a higher interest rate with a 3 to 5 percent fee. A balance transfer moves an existing balance from one card to another (or sometimes to a bank account via a balance transfer check), often with a lower promotional fee for a limited time. Both are borrowed money, but balance transfers are designed to consolidate debt, while cash advances are designed to get cash.

Will a credit card to bank account transfer show up on my credit report?

The transfer itself does not show on your credit report, but the balance on your credit card does. If you transfer $2,000 and do not pay it back, your credit card balance increases by $2,000 plus the fee, which raises your credit utilization ratio and can lower your credit score. If you pay it back within a month, the impact is minimal.

Is there a limit to how much I can transfer from my credit card?

Yes. You can transfer up to your available credit limit, minus any balance you already owe. If your credit limit is $5,000 and you have a $2,000 balance, you can transfer up to $3,000. Some card issuers also set a separate cash advance limit, which may be lower than your total credit limit.