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The short answer
You can fund a transfer to Nigeria with a Canadian credit card on many apps, but the card issuer may treat it as a cash advance. The FCAC says cash advances usually carry a fee, a higher interest rate, and interest from the day of the transaction with no grace period. Check your card agreement or ask the issuer before you pay, and compare with a debit card or bank payment.
Paying with a credit card is tempting: it is quick, the app often offers a faster delivery option, and it can bridge a gap until payday. The catch is not with the remittance app but with your card issuer, which decides how to classify the payment.
Can you pay with a credit card?
Often, yes. Remitly's Canada to Nigeria page, viewed in October 2026, lists Visa and Mastercard credit cards among its Canadian payment methods and mentions an "Express" option with debit or credit cards where available. Other providers vary; some accept debit cards only. Check the payment options in the app before you set up the transfer.
The cash advance problem
The Financial Consumer Agency of Canada's page "How credit cards work" (modified 15 October 2025) explains what makes a cash advance different from a purchase:
- "You'll pay interest from the date you get a cash advance until you pay it back in full."
- "There is no interest-free grace period with cash advances."
- The interest rate is usually higher than for purchases. The FCAC gives an example of 19% for purchases and 22% for cash advances.
- A fee may apply each time, as a fixed amount, a percentage, or both, sometimes with a minimum and maximum.
The FCAC also says financial institutions often treat electronic wire transfers between financial institutions, money orders and travellers' cheques as cash advances. A payment to a money transfer service may fall into the same category, depending on how your issuer and the merchant code it. Our guide on why a cash advance fee appeared explains the coding.
Worked example: what it could cost
Example only, with invented figures. You send C$500 using a credit card. Your issuer treats it as a cash advance with a fee of 3.5%, minimum C$3.50, and cash advance interest of 22.99% a year. You pay the card in full 30 days later.
| Item (example) | Amount |
|---|---|
| Transfer | C$500.00 |
| Cash advance fee at 3.5% | C$17.50 |
| Interest: C$517.50 x 22.99% x 30/365 (if the issuer charges interest on the fee too) | about C$9.78 |
| Total extra cost from the card | about C$27.28 |
| Plus the provider's own transfer fee and FX margin | shown in the app |
If the same payment had been treated as a purchase and paid in full within the grace period, the card itself would have added nothing. Check whether your issuer charges interest on the fee; the arithmetic above assumes it does. The difference is entirely down to how the issuer classifies it.
Steps: check before you pay
- Read the cash advance section of your cardholder agreement. Look for wording on "money transfers", "wire transfers" or "quasi-cash".
- If unclear, call the issuer and ask: will a payment to this money transfer service be treated as a purchase or a cash advance?
- Check the cash advance fee and rate on your latest statement.
- Compare the total with paying by debit card, bank account or Interac e-Transfer, if the provider accepts them.
- If you do use the card, pay it off as soon as possible, because interest runs from the transaction date.
If you have already paid
Look at your statement for a line marked as a cash advance or a separate cash advance fee. If you see one, ask the issuer whether it will reclassify the payment; some may not, but asking costs nothing. Pay the balance quickly to stop interest building, because it runs daily from the transaction date. For future transfers, switch to a debit card or bank payment if the provider accepts them.
Other points
- Rewards: cash advances often do not earn points. Check the rewards terms.
- Foreign currency charges: the FCAC notes that conversion charges apply to transactions outside Canada. A payment in Canadian dollars to a Canadian-facing app is normally a CAD transaction, but check the statement.
- Disputes: the FCAC says that if you find a mistake you should contact the merchant first and then your financial institution. A correctly coded cash advance is not a mistake, so a dispute is unlikely to remove the fee.
- Credit limit: a large transfer can push your utilisation up, which can affect your credit score. See building a credit score in Canada.
Where Pryme fits
Pryme is a technology company, not a bank. Outside Nigeria, its activities are carried out through regulated partners, and Naira deposits are held by a licensed Nigerian microfinance bank, regulated by the CBN and insured by the NDIC up to the applicable limit. When you use Pryme Send, the app shows the rate and the fee before you approve. How your card issuer classifies a card payment is set by the issuer, not by Pryme, so check with it first. For funding options, see how it works.
Questions people ask
Is paying Remitly with a credit card a cash advance?
It depends on your card issuer. Many issuers treat money transfers as cash advances. Check your card agreement or ask the issuer before paying.
Does a cash advance have a grace period in Canada?
No. The FCAC says there is no interest-free grace period on cash advances; interest starts on the transaction date.
Is it cheaper to pay for a transfer to Nigeria with debit?
Usually from the card side, because a debit payment does not attract cash advance fees or interest. Compare the provider's fee for each method in the app.
Do I earn credit card points on a money transfer?
Often not, if it is treated as a cash advance. Check your rewards terms.
Sources
- FCAC: How credit cards work (modified 15 Oct 2025) · accessed Oct 2026
- Remitly: Send money to Nigeria from Canada (page viewed Oct 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.