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Can You E-Transfer with a Credit Card?
May 14, 2025
Quick Answer
You cannot directly fund an Interac e-Transfer with a credit card, as the service is designed to pull funds exclusively from a bank account.
Should You E Transfer With A Credit Card?
Using a credit card for an E-Transfer involves weighing its advantages and disadvantages.
Benefits of Using a Credit Card for E-Transfers
- Earn rewards: You may accumulate points, miles, or cashback on the transaction, similar to a regular purchase.
- Flexibility: Send funds using your available credit, even when your bank account balance is low.
- Transaction records: The transfer appears on your credit card statement, providing a clear and detailed record.
Costs of Using a Credit Card for E-Transfers
- Cash advance fees: Most card issuers classify these transfers as cash advances, which incur an immediate fee.
- High interest rates: Cash advances typically carry a significantly higher interest rate than standard purchases.
- No interest-free period: Interest often starts accumulating from the day of the transaction, without a grace period.
- Service charges: The platform processing the E-Transfer may add its own transaction fee.
How to E Transfer With A Credit Card
Sending money via e-transfer using a credit card can be a convenient option, but it's crucial to understand the process to avoid unexpected fees. Here’s how it generally works.
- Confirm Eligibility and Terms: Before you start, check with your credit card issuer. Not all cards support this feature, and those that do often treat it as a cash advance, which typically involves higher interest rates and immediate fees. Review your cardholder agreement for specific details.
- Choose the Right Card: Given the potential costs, using a card with favorable cash advance terms is key. If you plan to do this often, it's wise to find a card with low fees and interest rates for these transactions. You can use a discovery platform like the Kudos explore cards tool to find a suitable option.
- Link Your Card to Your Bank Account: To use your credit card for an e-transfer, you must first link it to your primary bank's online portal. This usually involves adding the credit card as a funding source in your e-transfer or payment settings.
- Initiate the E-Transfer: Log in to your online banking and navigate to the e-transfer section. When you set up the payment, select your linked credit card as the source of funds instead of your chequing or savings account.
- Review and Send: Carefully review the transaction details before confirming. The summary screen should explicitly state any cash advance fees that apply. Once you understand and accept the costs, you can finalize and send the transfer.
Impact On Your Credit Score
Using a credit card for an e-transfer can affect your credit score in several ways. Here are a few key factors to keep in mind before you proceed:
- Cash Advance Treatment. E-transfers from a credit card are typically treated as cash advances by your provider. This means they often come with higher interest rates and no grace period, potentially increasing your debt.
- Credit Utilization Ratio. A large e-transfer can significantly increase your credit utilization ratio, a key factor in your score. Lenders prefer to see a lower ratio, so a sudden spike can negatively impact your credit standing.
Alternative Ways To E Transfer
Direct Bank Account Transfers
Most e-transfers are processed directly from a chequing or savings account, bypassing the need for a credit card entirely. This is the standard method for services like Interac. For those seeking other platforms, services such as PayPal also allow you to link your bank account to send funds directly to another person’s account or email address, offering a comparable way to move money digitally without relying on credit.
Adjusting Transfer Settings
To streamline the process, consider adjusting your account settings. Enabling the Autodeposit feature allows funds to be deposited into your account automatically without requiring a security question, enhancing both convenience and security. You can also create a list of frequent contacts within your online banking portal, which saves time by pre-populating recipient information for future transfers, making recurring payments much simpler to manage.
Choose the Right Card to E Transfer
The 'best' card is different for everyone, depending on your spending habits and financial goals. Sifting through thousands of options to find the right one can feel overwhelming, but it doesn't have to be. With a database of nearly 3,000 cards, Kudos' AI-powered tool can help you find your perfect match by comparing features, rewards, and fees to align with your personal preferences.
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Frequently Asked Questions
Will sending an E-Transfer with a credit card be treated as a cash advance?
Yes, most financial institutions treat this transaction as a cash advance, which incurs higher interest rates and fees.
Are there extra fees for using a credit card for an E-Transfer?
Typically, yes. Expect a cash advance fee from your credit card provider on top of any standard E-Transfer fees.
How quickly will the recipient get the money?
The transfer speed is usually the same as a standard E-Transfer, often arriving within minutes to an hour.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
