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The short answer
Many card issuers treat a money transfer paid by credit card as a cash advance, which means a fee of a percentage or a flat amount, a higher interest rate than purchases, and interest from the day of the transaction with no grace period. Several remittance apps, including Sendwave, do not accept credit cards at all; where they are accepted, your card agreement decides the cost, not the transfer firm.
Why a transfer counts as a cash advance
Card issuers classify each transaction by the merchant category the receiving business reports. Money transfer firms, like bureaux de change and gambling sites, are often in categories that issuers treat as cash-like. Remitly's guide (updated 27 August 2026) says issuers "may classify certain money transfers as cash advances". Western Union's US Nigeria page warns that if you pay by credit card, your card issuer's cash advance fee and interest may apply, and that its $0 fee offer is not available for credit cards.
The transfer firm usually cannot tell you how your bank will treat it. Your card agreement can, under its cash advance or cash-like transactions section.
What a cash advance costs
The CFPB's page on cash advances (reviewed 2 September 2026) describes three costs:
- A fee, charged as a flat amount or a percentage of the advance. Remitly notes that it is often whichever is greater.
- A higher rate. Cash advance APRs are commonly higher than the purchase rate.
- No grace period. Interest starts immediately, even if you pay your statement in full by the due date.
In the UK, Asda Money's travel guide says a credit card cash advance fee is usually 2% to 3%, on top of any foreign transaction fee. Your own card's figures are in its summary box or agreement.
Worked example
This is an illustration with made-up card terms, not any real card: a $500 transfer on a card with a cash advance fee of 5% or $10, whichever is greater, and a cash advance APR of 29.99%.
| Item | Amount (example) |
|---|---|
| Transfer amount | $500.00 |
| Cash advance fee (5% of $500) | $25.00 |
| Balance accruing interest | $525.00 |
| Interest for 30 days at 29.99% APR (525 × 0.2999 ÷ 365 × 30) | $12.94 |
| Extra cost if repaid after 30 days | $37.94 |
That $37.94 is on top of whatever the transfer itself costs in fees and exchange-rate margin. Paying the same transfer by debit card or bank transfer would avoid it. If the cash advance balance sits on the card for months, the interest keeps growing.
Which apps take credit cards
Acceptance varies and changes, so check the payment screen. From the providers' own pages:
- Sendwave: debit cards only on its US and UK Nigeria pages; no credit cards and no PayPal.
- Western Union (US): accepts credit cards, with the cash advance warning above.
- Taptap Send: its sending guide refers to adding a debit card and does not list credit cards.
Before you pay by card
- Read your card agreement for how it treats money transfers and wire services, and the fee and APR that apply.
- Ask the issuer whether a payment to the specific firm will be coded as a cash advance; some will tell you.
- Compare the total: transfer fee plus FX margin plus cash advance fee plus interest. See FX margins on transfers to Nigeria and where zero-fee costs hide.
- If you must use credit for an emergency, repay the cash advance balance as soon as possible, since interest is running daily.
- Card rewards are usually not earned on cash advances, so do not count on points offsetting the cost.
If you have already been charged
Look at the statement line for the transfer. A cash advance usually appears with a separate fee line and its own interest rate in the balance breakdown. If you are surprised by it, call the issuer and ask how the transaction was coded and whether anything can be done; the answer depends on its policy, and nothing obliges it to reverse a fee that its agreement allows.
Then deal with the balance. Because interest runs from the day of the transaction, paying the cash advance part off early saves money in a way that paying a purchase balance early does not. Check how your issuer allocates payments: if your payment is applied to the lower-rate purchase balance first, the cash advance can keep accruing at the higher rate for longer.
Why debit or bank funding is usually cheaper
Remitly's own guide describes paying from a debit card or bank account as often less expensive and calls a credit card a "last resort". The reason is not the transfer firm's fee, which may be the same, but the card issuer's charges on top. A bank transfer can be slower to clear than a card, so if speed is the reason for reaching for a credit card, check whether a debit card gives the same delivery time; on many apps it does.
There is also a question of what you are borrowing for. Using a credit card to cover a family emergency in Nigeria is borrowing at cash advance rates. If the need is recurring, such as school fees each term, setting aside the money in advance usually costs far less than repeated cash advances.
Where Pryme fits
If you are moving your own money rather than borrowing, you can hold pounds, dollars or euros with Pryme on a multicurrency account and use Swap to convert when you choose; the app shows the rate and the fee before you approve. See sending to Nigeria.
Questions people ask
Is sending money with a credit card a cash advance?
Often, yes. Many issuers code payments to money transfer firms as cash advances. Check your card agreement or ask your issuer before paying.
How much is a cash advance fee?
It is set by your card, usually a percentage or a flat fee, often whichever is greater. Asda Money says UK cash advance fees are usually 2% to 3%.
Does interest on a cash advance start straight away?
Yes. The CFPB says there is generally no grace period, so interest starts on the day of the transaction.
Can I use a credit card on Sendwave?
Sendwave's Nigeria pages say it accepts debit cards only, not credit cards or PayPal.
Sources
- CFPB: Can I withdraw money from my credit card at an ATM? (reviewed 2 Sep 2026) · accessed Oct 2026
- Remitly: How to send money with a credit card internationally (updated 27 Aug 2026) · accessed Oct 2026
- Western Union US: Send money to Nigeria (2026) · accessed Oct 2026
- Asda Money: Should you pay in local currency when abroad? · accessed Oct 2026
- Sendwave: Send money from the US to Nigeria (2026) · accessed Oct 2026
- Taptap Send Help: How do I send money with Taptap Send? (updated 20 Aug 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.